Carmel hotel project more than $20 million over original budget

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13 thoughts on “Carmel hotel project more than $20 million over original budget

  1. Anyone “shocked & amazed” by this developing news? Seemingly every public/private partnership Carmel is involved in goes WAY over budget. Get out of real estate, development & fairy tale crafting. Let development occur organically. City didn’t learn anything from the dramatically underutilized & astronomically over budget palladium project. White Elephant. Guessing the crazy priced Hoagie Carmichael tribute statue is going to help the palladium? COUNTLESS budgetary development stories in this little burg. Wish I could issue bonds for my fun ideas. Would be much easier than trying to win the lottery.Sorry, I digress.
    Still left wondering why we didn’t elect Fred Glynn.

  2. Let’s see if we can summarize

    Project was $38M and with the bond issuance fees Council approved $40M

    CRC borrowed $43.5M

    Now project is $58.5M after supposedly value engineering. Materials went up 10% and project went up over 50%. Land that we essentially gave to Pedcor whuch they then used as their skin in the game has now gone up in worth $3M. Is that how they are being made whole for waiting longer for payback?

    To cover the shortfall CRC took out mortgages on property that currently has existing debt on them. My understanding is anything over $2M has to go in front of Council. This didn’t or hasn’t yet. Jeff Worrell is on CRC but hasn’t said a word

    So far from history this is SOP of Jim Brainard, Jeff Worrell, and rest of CRC. They will under the table start paying hotel expenses via various city departments and come to Council for more money which the Council will have no choice but to fund or let the hotel collapse.

    Just another Carmel project playing out as the “malcontents” predicted

    1. All great points. I have been in development for many many years and I have developed over $1B and if I ever had a project that was >~5% over budget I would be extremely irritated with my team and odds are…I probably would never be doing another project for that client again.

      Where is the accountability on all sides here?

      Where does the money come from when they are this much over-budget on the operations of this hotel? This type should be a huge and vocalized concerned of the citizens of Carmel.

  3. Should just rename the town Pedcor – they have gotten so much help from the city over the years not sure where the company’s interests end and the city’s begin.

    1. Robert S: May 21, 2016 was a Saturday – IBJ publication dates are Fridays…when crawling IBJ.com[1], Google finds no stories like what you’re describing. There *was*, however, a story in the Indianapolis Star on May 31, 2016, “Developer Pedcor Owns Carmel’s Bank” found here: https://www.indystar.com/story/news/local/hamilton-county/2016/05/31/pedcor-deepens-ties-carmel/84903080/
      .
      .
      [1] using this Google search criteria: [ site:ibj.com “United Fidelity” pedcorp ]

  4. Another Carmel fiasco. Cost equates to $479,500 per room! I doubt the JW Marriott downtown cost that much per key! The hotel is going to have to have an average room rate of $375-$400/night to breakeven. These fools in Carmel don’t have a clue what they’re doing including their favorite developer Pedcor.

  5. What building materials will be used? Some building materials, such as lead-based paints, may contain elements that tend to accumulate in the body for many years, slowly destroying it. Researches have shown that only in 5 out of 21 prototypes of various, including well-known, manufacturers the level of lead did not exceed the maximum recommended indicator of 0.009%. https://www.ablesafety.com/course/4-hour-rrp-lead-safe-renovator-refresher That is why builders should renew their lead certificates every 5 years.

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