Council had approved the subsidy about 1 a.m. Tuesday, the same day some potential lenders flew representatives to Denver to meet with Seth Berger. Meanwhile his father, Bruce, has headed to Europe to meet with foreign lenders. "We'll be looking at lenders from the entire continent," Seth Berger told GlobeSt.com. If domestic lenders are chosen, the Bergers probably will end up with a syndicate of banks led by one bank, he says.
Seth Berger says it's about as difficult to finance a hotel these days than any type of commercial real estate project. But he says several experts say the project stands as good as chance as any in the country since it has the fiscal backing of the Denver Urban Renewal Authority. "But we know it's not a slam dunk," he told GlobeSt.com. "Everyone else going to these lenders also will have reasons why their projects look attractive. We'll be competing against them."
It is likely that it will take at least four banks to finance a project of this magnitude. Seth Berger says that is a result of banks being hesitant to provide loans in excess of $30 million for hospitality projects.
Berger faces another potential obstacle. The Hotel Employees and Restaurant Employees Union, which had failed to stop the subsidy, is threatening to ask voters to overturn the council's decision in November. "I don't know what they're going to do so I can't respond," Berger says. "But keep in mind, there are no hotel employees at this point. I would hope the union wouldn't stop a project that will create thousands of jobs."
The union wants Hyatt to be completely neutral as it attempts to organize workers. But Hyatt says it needs to keep open communication lines with employees and should be allowed to answer statements the union might make against management.
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