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- Thread starter Kiwi
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catcher_of_cats
Active Member
Connaught offer dead but saga continues
July 30, 2008
Wade Hemsworth
The Hamilton Spectator
(Jul 30, 2008)
The owners of the Connaught have pulled the plug on developer Harry Stinson's offer to buy the downtown Hamilton hotel, but the drama is hardly over yet.
Both sides are working separately to put together a new deal that would bring the Connaught back to life, a deal that may or may not see them working together.
The local investors who accepted Stinson's $9.5 million offer in February had already extended his deadline to put the money together to June 30.
Now, a month later, they say it's time to move on, which means the offer expires and Stinson forfeits his $100,000 deposit.
"Anything that would happen from here on in would be a new deal," said Tony Battaglia, a member of the owners' group. "The original deal is null and void, and we're carrying on pursuing our other options."
Both sides are trying to put together the tens of millions in financing it will take just to get the empty hotel open and running again.
"I think that within the next few weeks, one way or the other we'll come to a conclusion as to whether we can structure this or not," Stinson said.
The owners group is meeting today to talk about its plans for moving on without Stinson, knowing -- as he does -- that the financial market is much tighter now than it was five months ago, when the group accepted the offer.
"This was a difficult project to finance from Day 1," Battaglia said, "and I would say at this point in the game, it's probably even more difficult than it was before we received the offer from Harry."
Meanwhile, Stinson is unbowed, continuing to work long hours in the sales office he opened last month at King and James -- three blocks west of the Connaught.
Gord Moodie, a development consultant in the city's downtown renewal office, has been working for months on the Connaught file, and believes a deal could actually be closer than it appears.
"I look at it very positively," Moodie said. "Another week and I think we'll have a really good idea of what's happening."
Battaglia estimates it would take $36 million to rebuild the existing hotel, which his group bought in 2005 and had gutted prior to accepting Stinson's offer five months ago.
He said he and his partners -- who include hotelier Oscar Kichi, builder Ted Valeri, union head Joe Mancinelli and banker Mario Frankovich -- are going back to their original plan for the site, which includes rebuilding the interior of the 1916 hotel, building a parking garage and, later, a modest condo tower above the garage.
At the same time, Battaglia said, the group is open to offers from other developers -- including Stinson.
Stinson is working on a plan that would see him make a new offer, one that would feature a mix of investors including the current owners as mortgage holders until construction begins.
His proposal to restore the hotel and later build a 1,000-foot condo tower has generated intense interest, he said, but potential buyers have been reluctant to commit before he closes the deal.
"If we had a nickel for everybody who has said, 'Call us when you've closed,' we probably could have financed the building," he said.
To pass muster with the owners, Stinson said, any new offer from him will have to include proof of substantial outside financing.
"I appreciate that, and I wouldn't have the nerve to show up and say, 'Here, I've got another napkin with some ideas written on it.' "
whemsworth@thespec.com
905-526-3254
July 30, 2008
Wade Hemsworth
The Hamilton Spectator
(Jul 30, 2008)
The owners of the Connaught have pulled the plug on developer Harry Stinson's offer to buy the downtown Hamilton hotel, but the drama is hardly over yet.
Both sides are working separately to put together a new deal that would bring the Connaught back to life, a deal that may or may not see them working together.
The local investors who accepted Stinson's $9.5 million offer in February had already extended his deadline to put the money together to June 30.
Now, a month later, they say it's time to move on, which means the offer expires and Stinson forfeits his $100,000 deposit.
"Anything that would happen from here on in would be a new deal," said Tony Battaglia, a member of the owners' group. "The original deal is null and void, and we're carrying on pursuing our other options."
Both sides are trying to put together the tens of millions in financing it will take just to get the empty hotel open and running again.
"I think that within the next few weeks, one way or the other we'll come to a conclusion as to whether we can structure this or not," Stinson said.
The owners group is meeting today to talk about its plans for moving on without Stinson, knowing -- as he does -- that the financial market is much tighter now than it was five months ago, when the group accepted the offer.
"This was a difficult project to finance from Day 1," Battaglia said, "and I would say at this point in the game, it's probably even more difficult than it was before we received the offer from Harry."
Meanwhile, Stinson is unbowed, continuing to work long hours in the sales office he opened last month at King and James -- three blocks west of the Connaught.
Gord Moodie, a development consultant in the city's downtown renewal office, has been working for months on the Connaught file, and believes a deal could actually be closer than it appears.
"I look at it very positively," Moodie said. "Another week and I think we'll have a really good idea of what's happening."
Battaglia estimates it would take $36 million to rebuild the existing hotel, which his group bought in 2005 and had gutted prior to accepting Stinson's offer five months ago.
He said he and his partners -- who include hotelier Oscar Kichi, builder Ted Valeri, union head Joe Mancinelli and banker Mario Frankovich -- are going back to their original plan for the site, which includes rebuilding the interior of the 1916 hotel, building a parking garage and, later, a modest condo tower above the garage.
At the same time, Battaglia said, the group is open to offers from other developers -- including Stinson.
Stinson is working on a plan that would see him make a new offer, one that would feature a mix of investors including the current owners as mortgage holders until construction begins.
His proposal to restore the hotel and later build a 1,000-foot condo tower has generated intense interest, he said, but potential buyers have been reluctant to commit before he closes the deal.
"If we had a nickel for everybody who has said, 'Call us when you've closed,' we probably could have financed the building," he said.
To pass muster with the owners, Stinson said, any new offer from him will have to include proof of substantial outside financing.
"I appreciate that, and I wouldn't have the nerve to show up and say, 'Here, I've got another napkin with some ideas written on it.' "
whemsworth@thespec.com
905-526-3254
catcher_of_cats
Active Member
Another of Harry's dreams goes up in smoke. I wonder what his next scheme shall be?
egotrippin
Senior Member
Only Stinson is ridiculous enough to think that he could build a 1,000 foot condo tower in Hamilton. Hopefully he comes back to the table with something realistic, otherwise I think it's time for him to give up.
A "modest" tower on top of the parking garage is a much more sensible idea.
A "modest" tower on top of the parking garage is a much more sensible idea.
Edward
Senior Member
He can't come up with 9.5 million how's he going to come up with enough to even build a modest condo?
marcus_a_j
Senior Member
I think it's the current owners who would build the "modest condo", as it says they "are going back to their original plan for the site, which includes rebuilding the interior of the 1916 hotel, building a parking garage and, later, a modest condo tower above the garage". Harry would still want to proceed with his 1,000 ft'er idea I would imagine.
flar
Active Member
The current owners originally planned two towers in the 25 storey range. They couldn't come up with the financing either.
syn
Senior Member
I guess Stinson will never learn. There are plenty of good, out of work designers he could hire to design some professional marketing material for him. Instead it's the same old crap.
The website is a definite improvement though.
The website is a definite improvement though.
syn
Senior Member
khris
Senior Member
That article doesn't mention the tower, only the old building that was to be renovated.
Evan
Active Member
"I appreciate that, and I wouldn't have the nerve to show up and say, 'Here, I've got another napkin with some ideas written on it.' "
This pretty much sums up Stinson!
This pretty much sums up Stinson!
Redroom Studios
Senior Member
I'm sure they saw Harry coming and figured they wouldnt mind taking the $100k off him... what a tool.
urbandreamer
recession proof
Hairy is welcome to move to Brantford! They like building tall silos in farm country....
You gotta wonder how that man stays married.... Are his children embarrassed? etc?
You gotta wonder how that man stays married.... Are his children embarrassed? etc?
adma
Superstar
Automation Gallery
Superstar
Thats cause if he cant get the old building going he sure wont get the tower off the ground.I still say bring that tower to Toronto and give the design to a reputable developer like Tridel.Hey it may look good at 1 Bloor East.