Peabody-County Financing Deal in the Works

The project would be completed in 2008 if the deal goes through, hotel consultants intimate with the plan tell GlobeSt.com.

The hotel's owner proposed the plan to save about $6 million a year in loan interest payments. With the county backing the project, the hotel could win lower construction loan interest rates and save $45 million over 30 years, area brokers following the controversial issue tell GlobeSt.com.

The hotel, which opened in 1986 at 9801 International Dr. , is directly across from the four-million-sf Orange County Convention Center. The least expensive room is $180 per night. The five-star hotel generally enjoys a year-round average occupancy of 85%, area consultants tell GlobeSt.com.

None of the major metro area hotel owners could be reached for comment but sources close to the industry tell GlobeSt.com they couldn't find a single owner among the area's 188 hotels who favored public money helping to finance a private project such as Peabody's.

The core of the financing plan would have Orange County pledge a percentage of its monthly hotel room tax collections as security for the Peabody's repayment of construction loans to its own lender. The county's money would only be used if the Peabody were unable to repay its construction bonds. The hotel would later repay the county. The county took in a record $111 million in 2004 room tax revenue.

In addition to the financing plan, Peabody representatives also want the county to levy a special tax on the hotel and use that money to fund up to $70 million in road and drainage improvements needed for the new projects. Having the county borrow the money tax-free could save the hotel another $10.5 million over 30 years, hospitality consultants tell GlobeSt.com.

Peabody representatives who are making the proposal to County Mayor Rich Crotty are Allan Villaverde, the hotel's general manager; Tom Wilkes, the hotel's lawyer and former Orange County chief attorney; Fred Leonhardt, an Orlando lawyer and lobbyist; and Phil Brown, a financial consultant to the hotel and a former county administrator.