In a news release, Mayor Gayle Kaler said Senate Hospitality, the developer behind a project to build the hotel attached to the Paducah McCracken County Convention & Expo Center has failed to secure a bank loan for the project, which was one of the requirements mandated by the city commission.
Kaler said city officials are continuing to work hard to make the project an eventual reality, and applauded the developers for their willingness to invest in the project. She said the project has taken more time than anticipated due to financial issues and other factors, including hotel design.
Kaler said the city's incentive package for the project remains intact. The $19.2 million project was to be financed by Independence Bank, but it is unclear now if there is any chance of that happening in the future.
Here is Mayor Kaler's statement in its entirety:
After months and months of work regarding the downtown hotel project, it has been determined the development team was unable to satisfy the conditions of the Resolution approved by the City Commission on January 20, 2015, requiring the closing of the bank loan as of 2 p.m. today.
We applaud the developers for their tenacity and their desire to invest in downtown Paducah. No one is questioning the desire for this hotel to be built. I wish to assure everyone that the city commission and staff have worked and will continue to work diligently to make the addition of a hotel in historic downtown Paducah a reality. This is a complex project involving the coordination of various financing components ranging from city-issued bonds, state tax credits, and private financing.
The project has taken more time than anticipated due to such complexities as well as other factors including hotel design. The city’s incentive package for the project remains intact, and no monies have been advanced to any developer to date.
The city has learned so much from this process. We have a very good idea and a plan for what it takes to make a downtown hotel project possible, and we know that Paducah is a desirable location. The next step is for the City Commission to discuss options and opportunities for moving forward with the project.
