Balsams Wilderness State Loan in Limbo
Vote on $28M loan guarantee to save Balsams grand
hotel in limbo
New Hampshire Union Leader
March 28. 2018 9:22AM
— The state Business Finance Authority said it didn’t have all the answers yet
to vote on a $28 million state loan guarantee to revitalize the Balsams resort.
continue to work with the Balsams team to get more information,” BFA Executive
Director James Key-Wallace said Tuesday.
finance authority, which met Monday, is being asked to approve a $28 million
loan guarantee from the state of New Hampshire that would require the state to
step in and make loan payments should the $170 million project run into
finance authority and the project’s lender, Service Credit Union, “are looking
a little bit further into the terms and potential conditions,” said Scott
Tranchemontagne, a spokesman for developer Dixville Capital LLC.
state loan guarantee “is a critical component of the financing plan that must
be in place for us to proceed with the rest of financing as proposed,”
BFA approves the loan guarantee, then the proposal would go before the
authority meeting is April 16, but Key-Wallace wouldn’t guarantee a vote then.
really depends on when and if we get the information we need,” he said.
said he couldn’t disclose what information the authority was looking for. The
BFA, established in 1992, is tasked with promoting economic development in the
state by assisting businesses to obtain loans that banks otherwise might not
fund, among other initiatives.
project’s first phase includes renovation of the Hampshire and Hale houses;
reconstruction of Dix House; and construction of a 400-room Lake Gloriette
House Hotel and Conference Center, Nordic baths and spa as well as a
marketplace and expansion of the former Wilderness ski area.
financing includes $20 million in developer equity; about $35 million in other
equity, including preferred equity from investors; $18 million in equipment
lease financing for the ski area; $53 million in construction financing; and
$15.4 million in funding through the EB-5 Immigrant Investor Visa Program,
which allows foreigners making certain commercial investments in the United
States to be eligible to apply for a green card and permanent residence.