Plans for a 160-room Hilton Hotel on La Terraza Boulevard have fallen through because the developer announced he could not get financing. Construction was scheduled to begin months ago.
The tough environment for hotel financing in capital markets is the main problem.
More than 38 lenders have passed on the project due primarily to market studies required by the banks indicating only a projected 64% occupancy rate after the first year, wrote architect Ed McArdle in a letter to the council.
McArdle asked the council last night to let him build an office complex instead. But the council rejected a motion to study the office-complex idea, with city leaders saying they didn't want to give up on the hotel ideayet.
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