This article was last edited Sept. 10 at 4:07 p.m.John Q. Hammons Hotels & Resorts and Tulsa, Okla., construction firm Flintco Inc. are working out a$25 million dispute over the 300-room Renaissance Hotel under construction in Colorado Springs, Colo., according to the
Colorado Springs Gazette.
Construction began on the Renaissance in 2008 but stopped last October, causing Flintco, the hotel's general contractor, to file a $29.3 million mechanic's lien in October 2009 - later reduced to $24.6 million - to dispute the developer's inability to obtain financing for the project, according to the article published Sept. 8.
Liens can, if necessary, lead to a foreclosure action.
Flintco CEO Tom Maxwell told the newspaper the firm would continue to work with Hammons Hotels to resolve the problem and is optimistic that a solution can be reached.
Justin Harris, JQH Hotels & Resorts senior vice president and general counsel, released a statement Sept. 10 regarding the Renaissance Hotel.
"John Q. Hammons continues to do everything within his power to see the Colorado Springs Renaissance Hotel, Spa and Conference Center completed and opened," Harris said in the statement. "Unprecedented economic challenges have prevented Mr. Hammons’ private development project from moving forward to completion, as construction financing has not materialized.”
According to the statement, the developer is moving forward with Flintco to determine the best course of action.
"Over the last decade, we have successfully worked with Flintco on 12 development projects exceeding $350 million in value," Harris said in the statement. "The future of the Colorado Springs Renaissance project has no impact on the operation of our existing hotels."
Developer John Q. Hammons halted construction of a proposed Denton, Texas, hotel and convention center in mid-August, also due to financing issues, according to
Springfield Business Journal coverage.
The project, near the University of North Texas on school-owned land, was stopped with the contention that Hammons come up with $50 million for the project to continue. The city of Denton put up financing for the convention center but is waiting on developer funding for the hotel, according to SBJ coverage.
The developer also earlier this year announced it would not be building a hotel next to the Springfield Expo Center,
citing financing difficulties.
Hammons officials could not be reached before deadline.[[In-content Ad]]
