Berger and Hyatt are asking for a 45-day extension. If, at a future date, if Berger cannot perform or will not perform, Hyatt says it will take over as the landowner, developer and owner of the hotel, as well as the operator.
Berger owns the full block at 14th and California streets across from the convention center. But another option is for the city to own a convention center hotel itself.
City councilwoman Susan Barnes-Gelt argues that the city can issue tax-exempt financing and build the hotel cheaper than any private developer. But city councilwoman Cathy Reynolds says while that is true, the city would need to buy land. And if it condemned the Berger property, which used to house the Denver Post newspaper, it would likely have to pay $25 million or more, possibly eliminating any cost advantages from lower interest rates.
If the Berger deal goes through, the Denver Urban Renewal Authority has granted him a $55.3-million subsidy.
The Berger deal stalled over the last year because of union problems and competition from another proposed project. Also, it has become virtually impossible to get financing for a privately owned convention center hotel since Sept. 11.
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