Despite delays, the Josie Hotel at Red Mountain is still slated to open in time for the 2017-18 ski season.
The hotel’s developer, William Cole Companies, has recorded a $24 million construction loan for the hotel — the delay in construction having been caused by a delay in obtaining the loan. Howard Katkov, CEO and chairman of Red Mountain Ventures, says he is a close, personal friend of Spencer Clements, president and principal of William Cole, and assisted the company in getting the loan. Recently Clements sent Katkov a written update on the Josie Hotel, and there’s just one further step before construction can resume.
“As a condition for them to get that money, because they still can’t access that construction money, they have to put in a few more million dollars of equity, which they are raising right now,” says Katkov. “And once that money is raised construction will commence again and we’re hopeful that will happen in the next month or so.”
If William Cole can’t raise the remaining equity, the company has committed to putting up the equity itself.
As for rumours that the hotel has gone bankrupt, Katkov says they simply aren’t true.
“What you see on the property today is about between $8-10 million of cash investment; there is no debt on this property,” explained Katkov. “So when you hear rumours that the hotel is bankrupt, the hotel is not bankrupt; that’s all out of pocket equity.”
In his letter to Katkov, Clements closed by saying that he is committed to having the Josie Hotel open by the 2017-18 ski season and that the Josie will be well worth the wait.