Stimulus Boost for Downtown Brooklyn Hotel
Last year, the Magna Hospitality Group dropped $10.8 million for the former Pepper & Potter car dealership at the corner of Flatbush and Tillary in Downtown Brooklyn with the plan of erecting a Hampton Inn overlooking the busy intersection. Since then, however, they’ve been unable to land construction financing. The Times reports that the 117-room…
Last year, the Magna Hospitality Group dropped $10.8 million for the former Pepper & Potter car dealership at the corner of Flatbush and Tillary in Downtown Brooklyn with the plan of erecting a Hampton Inn overlooking the busy intersection. Since then, however, they’ve been unable to land construction financing. The Times reports that the 117-room hotel project has just gotten a new lease on life in the form of a $20 million tax-free loan courtesy of the federal stimulus program. Four other city projects received another $67 million as well. There is no significant construction lending taking place right now, said David Lombino, a spokesman for the city’s Economic Development Corporation. But for this program, these projects wouldn’t go forward. To qualify, the developments must break ground by the end of 2010.
Five Development Projects to Receive Stimulus Money [NY Times]
From Cars to Mini-Fridges on Tillary [Brownstoner] GMAP
you’re an idiot. tax free isn’t interest free.
would you rather have blight and no yield or new development and tax free yield?
you and butterfly should go off to a corner and be ignorant.
Yikes, 10.8 million for THIS Corner?? Yippeee for GPBA. But good lord that corner sucks.
And Tax Free Bonds strike once again. And the taxpayer loses. Glad I am helping pay for some crap hotel and Yankee Stadium. Welfare for the Steinbrenners.
Yeah, I don’t get the term “tax-free loan” either. Tax-free bonds makes sense because there is a profit involved. Is this the same idea… a bank or some other sort of lender is willing to take on a little more risk because the profit from the interest isn’t taxed?
It’s a little confusing.
Petebklyn – probably just like Citypoint financing. Tax free bond financing, which means people who buy the bonds don’t pay taxes on income. Govts. been issuing these for decades.
so rate lower to borrower. In this case, means they can get financing period.
Great news for that ugly corner……
My company represents some of these very sorts of hotels, which provide jobs to locals as well as reasonable accommodations in a high-priced city for international student groups, small business people and a variety of visitors who want proximity to Manhattan without the price. They have, in large part, been very successful, and likely worth the investment from the government.
yay! our stimulus tax money is now going towards renovations for a future crack den. yay America!
barf
fry – i have no problems with welfare hotel crack dens (in fact they serve a function in a big city and we could use a few more in fact), i just dont like that they are now subsidized.
*rob*
what is a ‘tax-free’ loan?