After more than two hours in executive session, the board members emerged from the Moore Development conference room with a document they feel is on target.
“I move that we accept and direct the president (of the Moore Board) sign the new letter of intent with the Settles Hotel Development Corporation for Moore Board to provide up to $3 million on projects we can do as a 4A company upon the Settles Company coming up with $6 million,” said Moore Board member Frank Parker.
According to Larry McLellan, board president, the agreement will allow Brint Ryan, the manager of the Settles Hotel Development Corporation, room to tailor the construction to meet market demands.
“I feel like Big Spring is still a winner with this,” said McLellan. “It makes sense that you wouldn’t take a project of this magnitude and try to market or forecast the condition of the final project. If you look at market conditions, I think it’s something most developers would consider and then move toward. You don’t just put it out there and hope the conditions come to you.”
McLellan described the required $6 million from SHDC as a claw back agreement, which will allow Moore Development to recoup funds if Ryan doesn’t meet a two-to-one dollar ratio.
“Moore Board will pay 4A expenses that we can legally pay. As the project progresses, we will reimburse for those expenditures, up to $3 million,” said McLellan. “Keep in mind, these could come in early because of infrastructure. We will have a claw back agreement that will require Mr. Ryan to spend $6 million or reimburse Moore Board for any funds that do not meet that two-to-one ratio. So, if this project is finished at $6 million, Moore Board would receive money back.
“The original letter of intent was simply an agreement to start the process,” said McLellan. “And we mentioned at that time the process would continue on with even multiple letters of intent, until we get to the construction document. Then it will be more of a binding contract that will lay out the plans and the specifics of the project.”
Ryan’s company has placed $75,000 in escrow to pay for the building, according to city officials. Ryan said it was necessary for the company to wait to take control of the title to the building due to “timing issues” in efforts to renovate the structure and have it added to the national registry of historic places.
According to Ryan, SHDC is preparing for a $12 million renovation project which includes plans for commercial and residential use of the property, with retail space available on the first and second floors.
The board also discussed ongoing efforts to hire an executive director during the executive session. However, no action was taken on the matter.
Contact Staff Writer Thomas Jenkins at 263-7331 ext. 232 or by e-mail at
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