Broadway Hotel lawsuit brought up during TIF meeting

2 months 1 week 5 days ago Wednesday, October 04 2017 Oct 4, 2017 Wednesday, October 04, 2017 8:12:00 PM CDT October 04, 2017 in News
By: Carolina Brigagao, KOMU 8 Reporter
loading

COLUMBIA - Columbia's Tax Increment Financing commission opened the floor to hear from Columbia residents on possibly granting $2 million for a second Broadway Hotel tower.

Marjorie Lewis, a lawyer for QuesTec Constructor Inc., sent a letter to commission members asking them to consider the Broadway Hotel debts before granting the TIF.

"Killian Construction was the original contractor for the Broadway Hotel project. And it employed numerous subcontractors and material suppliers to perform the work the construction of the hotel itself. Killian Construction is asserting that it was not paid in full for its work on the project," Lewis said. "And several subcontractors, including QuesTec, are asserting that they were also not paid in full for the project."  

The Columbia City Council granted David Parmley a TIF back in 2014 to build the first Broadway Hotel tower. He disputes Lewis's claim that Broadway Lodging LLC has a contract with QuesTec.

"Yes, it is true that Broadway Lodging LLC is involved with the general contractor Killian Construction company," he said."We were surprised to see the letter form QuesTec with which whom we have no contractual relationship with. and with to whom we have no obligations. QuesTec was a clip contractor who was hired, on the project, by Killian Constructions."

During a power point presentation at the hearing, Parmley's team said the project has no risk to the city and "no up-front sum payment to the applicant."

"The only source of those funds are the additional real estate taxes that I will be paying if I am able to develop," Parmley said. 

In Lewis's letter, she said Broadway Lodging LLC owes QuesTec more than $240,000, not including interest and attorney fees for their work four years ago. While the total value of the debt in the lawsuit is more than $3 million.

"We've sent a letter to the commission members because I think it is important for the commission members to know that there is a lawsuit involving the existing Broadway hotel building in which the general contractor and various subcontractors are seeking substantial amounts for their work on the project," Lewis said.

Parmley said that in 2014, Killian Constructions delivered the project later then stated on the contract and not completely finished. He also said the City of Columbia also has cases with Killian Construction on the same problems, and that the lawsuit is not related to the TIF request.

The entire project will cost more then $20 million.

"Given that we have no contractual relationship with QuesTec, we were very surprised by the letter. To say the letter can out of left field, would be an understatement," Parmley said. 

Parmley previously said the amount requested has increased because the costs required for a project like this have gone up.

“In this case, the numbers are actually looking worse because the cost has increased about 38 percent over four, five years ago,” Parmley said.

The project includes the development of a second seven-story tower with 80 rooms, bringing the total number of rooms to 194. The second tower would triple the current meeting space, adding a 6,000 square feet rooftop ballroom and another 2,000 square feet meeting space in the ground floor.

Tony St. Romaine, part time consultant for the City of Columbia and former deputy city manager, said for a TIF to be accepted by the city council, the project must:

  • Not be able to happen without the money from the TIF
  • Not ask for a TIF that exceeds 20 percent of the total amount of the project
  • Contribute to the city’s infrastructure
  • Have proof that it has the financial means to be completed
  • Investor must personally contribute at least 15 percent
  • The city has no risk involved in the project

"The financing of this project would not be feasible without the assistance and provision of public financing including, but not limited to, tax increment financing," said a letter from Carrollton Bank, which supports the TIF.

The second tower would be built at 1104 E. Walnut. Parmley said he does not currently own the property, but has a contract to purchase the property by January 2018.

Lewis said, so far, it looks like the lawsuit will continue for sometime.

"Its been going on for a long time. And, you know, we are hoping to bring the lawsuit to trial possibly in April or May of next year. But, it doesn't look like any possibility of settlement at the moment," she said.

More News

Grid
List
NEW BLOOMFIELD - A two-vehicle car wreck Saturday left one dead and two others injured, according to the Missouri State... More >>
2 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 8:15:00 PM CST December 16, 2017 in News
COLUMBIA - An event in Columbia today addressed the prevalence of gun violence and misuse of firearms by offering gift... More >>
2 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 8:04:00 PM CST December 16, 2017 in News
COLUMBIA – A six-year-old held a hot chocolate stand Saturday outside of a Hy-Vee in Jefferson City to help two... More >>
3 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 6:51:00 PM CST December 16, 2017 in News
COLUMBIA - The Wyss Medical Foundation donated $2 million to the Missouri Orthapaedic Institute for the work of lead orthopaedic... More >>
5 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 5:05:00 PM CST December 16, 2017 in News
COLUMBIA- On Friday, the Columbia Police Department inducted eight new recruits, the largest class of officers in years. The... More >>
6 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 4:03:00 PM CST December 16, 2017 in News
JACKSONVILLE - An estimated 400 people attended a wreath laying ceremony Saturday at the Jacksonville State Veterans Cemetery. It... More >>
7 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 3:31:00 PM CST December 16, 2017 in News
COLUMBIA – Graduation day is long awaited by many and Amy Kiso Bledsoe is no exception. Bledsoe was... More >>
7 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 2:47:00 PM CST December 16, 2017 in News
ST. LOUIS (AP) — As Missouri struggles with the epidemic of opioid abuse, no place in the state has been... More >>
9 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 1:10:14 PM CST December 16, 2017 in News
BOONE COUNTY - A furnace malfunction caused a fire in a trailer home on Pratherville Road Saturday morning. Gale... More >>
10 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 12:05:48 PM CST December 16, 2017 in News
KANSAS CITY, Mo. (AP) — People returning to Kansas City after being released from prison will get a 90-day supply... More >>
11 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 11:25:12 AM CST December 16, 2017 in News
BOONE COUNTY - Firefighters responded to a shed fire off of Highway 40 near Rocheport Saturday morning. Boone County... More >>
12 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 10:04:00 AM CST December 16, 2017 in News
KANSAS CITY, Mo. (AP) — Officials with the University of Missouri-Kansas City say students will soon have access to state-of-the-art... More >>
14 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 8:16:45 AM CST December 16, 2017 in Continuous News
COLUMBIA - Cat cafes have popped up across the world in cities including New York City, London and Tokyo, and... More >>
15 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 7:36:00 AM CST December 16, 2017 in News
JEFFERSON CITY - Some Jefferson City kids are getting the chance at a Merry Christmas this year with the help... More >>
22 hours ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 12:00:00 AM CST December 16, 2017 in Top Stories
COLUMBIA - The Missouri State Highway Patrol has confirmed it has fired Trooper Anthony Piercy. KOMU 8 spoke to... More >>
1 day ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 8:42:00 PM CST December 15, 2017 in News
COLUMBIA - St. Louis officers arrested a suspect that was on the run in a duplex on Sears Court in... More >>
1 day ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 8:29:00 PM CST December 15, 2017 in News
COLUMBIA - The application for the top education position in the state, Missouri State Education Board Commissioner, opened Friday leaving... More >>
1 day ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 8:02:00 PM CST December 15, 2017 in News
BLUE SPRINGS (AP) — A commercial real estate records company based in suburban Kansas City has abruptly shut down, leaving... More >>
1 day ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 7:42:00 PM CST December 15, 2017 in Top Stories
Columbia, MO
Broken Clouds 45°
11pm 46°
12am 45°
1am 43°
2am 43°

Select a station to view its upcoming schedule:

Coming Up Next

10:29p
Saturday Night Live
12:02a
LX.TV: 1st Look
12:32a
Open House NYC
10:00p
The King of Queens
10:30p
The Cleveland Show
11:00p
Adventure Scouts

Tonight's Schedule

7:00p
Will & Grace
7:30p
Superstore
8:00p
Dateline NBC
9:00p
Saturday Night Live
7:00p
Family Guy
7:30p
Family Guy
8:00p
Bob's Burgers
8:30p
Bob's Burgers
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld