In a good day for a proposed convention hotel in downtown Kansas City, its developers say they’ve obtained commitments for a loan and are under contract to purchase land for the project.
According to KC Hotel Developers LLC and City Manager Troy Schulte, during a meeting Monday the developers showed Schulte a term sheet for a $110 million construction loan from an undisclosed lender.
The loan would pay for the building of an 800-room hotel, run by the Hyatt, at the northwest corner of Baltimore Avenue and 16th Street. The total cost of the project, including purchasing the land and making other improvements, amounts to $311 million. The balance of the project’s cost would come from a bond sale and private investors.
After the Monday meeting, Schulte said the term sheet fulfilled the development team’s obligations under an agreement and means he and the developers won’t have to ask the City Council for an extension beyond Tuesday’s deadline.
The hotel project’s tentative opening date remains September 2019, but it still has hurdles to clear before construction starts.
Read more: Kansas City Star