Thursday, March 11, 2010

Go Or No Go?

Confusion rains supreme reading Ruling lets Alexandria move ahead with downtown hotel plan.

This is good for Jacques M. Roy and HIP:
The city of Alexandria on Wednesday won its battle with Capital One Bank in bankruptcy court regarding the Alexander Fulton Hotel.
U.S. Bankruptcy Court Judge Henley A. Hunter ruled that the city had "sole authority" to lease or sell the Alexander Fulton and that Capital One's claims to the hotel through a leasehold mortgage had been "rejected and terminated."
This is bad for Jacques M. Roy and HIP:
If the ruling survives potential appeals, it allows the city to proceed with its downtown hotels agreement with Hospitality Initiatives Partnership, a group of three partners who will take over ownership of the Alexander Fulton and the Hotel Bentley, which has been shuttered since 2004, as well as assume management of the city-owned Alexandria Riverfront Center.
This is also bad for Jacques M. Roy and HIP:
Chuck Johnson, however, said the city fully expects that Capital One will choose to file an appeal, which would be heard by U.S. District Judge Dee D. Drell. Another appeal could then head to the 5th U.S. Circuit Court of Appeals.
"I expect them to appeal," Chuck Johnson said. "They said all along that they were. That's not a surprise."
And this is a totally baffling statement:
Alexandria Mayor Jacques Roy said Wednesday's ruling removed the final hurdle before the city in its downtown hotels agreement with Hospitality Initiatives Partnership.
"We identified the problems to the public, we explained them thoroughly, we outlined a plan of action, and the plan was carried out. Of course, this paves the way for the deal to have removed from its path the largest and last remaining structural (legal) obstacle. We are pleased and will move forward."
HIP will be taking our money, so what is bad for HIP is good for us.  Jacques M. Roy said this deal couldn't survive another two months.  If Capital One appeals hold up the deal longer than May, how did yesterday remove the final hurdle to the HIP deal?