text: The answer is probably Yes. Note that the Primary Mortgage pays for most of the upfront construction (other than the conference center) and don’t forget that it takes precedence over all other financial arrangements, including the bonds and any payment to the city. Also, it appears that Capital is stirring and is looking for opportunities. According to a recent article in the New York Times, even hotel and apartment developers who have had properties go into default are finding backers.
  3. Is it reasonable to ask them to take on long-term debt in the form of Economic Development Corporation bonds?
  The answer from here is No. It appears that the whole reason for existence of this group is to pull off a complex real estate deal. The only long-term aspect is the hotel operation, which of course could be sold or simply partitioned off to the hotel operation member. They have no real assets. And they are an LLC, meaning that they are not individually liable for debts the group incurs. We have tried to illustrate in this series that the money is not likely to be there to pay debt service on the bonds, and as stated in a previous post the conference center itself might be at some risk if a lender did not receive payment. (Recall again that the bonds are subordinate to the primary mortgage.)
  As commented by Roxbury, the Valiant LLC does not itself have the expertise to actually manage the fine details of bringing the project to completion, but would have to depend on its consultants, including an as of yet unnamed project management group. We don’t know where that expense would be assigned, as it was not part of the original project budget.