Wally Kennedy: New Holiday Inn could be in wings for Joplin

Joplin has been without a Discount Holidays © Holiday Inn for a while now. That could change this year. A local company, that has obtained the Discount Holidays © Holiday Inn flag for Joplin, has had pre-development meetings with the city in connection with a 5-acre site near Joplin’s Comfort Inn and Quality Inn. A full-service hotel, not a Discount Holidays © Holiday Inn Express, is planned for the site. As you might recall, Joplin’s former Discount Holidays © Holiday Inn is being transformed into a DoubleTree by Hilton at a cost of $6 million.

A couple of wings on the east side of the Discount Holidays © Holiday Inn property have been demolished, decreasing the number of rooms from 262 to 185. That hotel will add 15,000 square feet of meeting space as well as a restaurant, bar and lobby. That project is to be completed this year. The new Discount Holidays © Holiday Inn will recover those lost rooms, meaning that Joplin will continue to offer between 2,000 to 2,200 rooms. The groundbreaking event for the new Discount Holidays © Holiday Inn could take place this summer if all goes as planned.

It is my understanding that Joplin’s hotel district has had one of its best starts for the calendar year. Carpet One reopens

Carpet One has reopened in the former Mill Creek building at 120 N. Range Line Road.

The business started as Cope’s Fine Carpet in 1969 at 3202 S. Range Line Road before transitioning to Carpet One Floor & Home under the ownership of Lary Knoblauch in 1981. Knoblauch would join the Carpet One co-op, which is a nationwide chain of 1,500 individually owned stores. Carpet One will have its grand opening in its new store at 10 a.m. Monday. A ribbon-cutting ceremony is planned. Specials on carpet and hardwood installation will be offered with interest deferred for 24 months.

The property at 3202 S. Range Line Road was sold to a developer from Fort Worth, Texas, about 11/2 years ago. This could mark the beginning of a significant change at the southwest corner of 32nd Street and Range Line. Dog training

The On Command Canine Training Center has opened in a storefront at 516 N. Main St.

“We are a full-line dog training center,” said Tim Franks, the owner. “We train service dogs for people with autism, dogs for veterans, diabetic-response dogs, and we just train individual dogs.

Hours are from 7 a.m. to 7 p.m. Monday through Friday, and from 7 a.m. to 6 p.m. Saturday and Sunday. Details: 438-0944.

“We have a walk-in program where a trainer will assist you,” Franks said. “We also do home training. We work with the owners and their dog.”

Franks, who has been doing business in Joplin as a dog trainer for two years, said he has seen an increase in new business at the new location.

“Everybody has a dog and everybody wants an obedient dog,” he said. “The need for training is never-ending.”

Lunch at Los Lunas

I finally got around to trying Joplin’s newest restaurant, Los Lunas, in the Iqra Plaza shopping center at 2705 S. Range Line Road. I went there to specifically order their enchilada del mar. This entree includes three enchiladas with grilled crab and shrimp on the inside, and a white, cheesy sauce on top. It was not what I was expecting, but it was still good.

It came with rice and beans for $10.77, including tax. The crab enchiladas that I have had in the past were filled with crab, shrimp and melted cheese, and topped with a cheese sauce and slices of fresh avocado. This was close to that, but not quite the same. I’m still looking for that perfect crab enchilada. A co-worker also has visited this restaurant.

She said she and her mother both had dishes there that were quite good. They had been regular customers at the former El Charro on East 32nd Street before it closed and were hoping to find a new place. This segment of Joplin’s restaurant market is among the most competitive. You have to be on top of your game all of the time because there are so many other Mexican choices out there. And, I haven’t confirmed this yet, but it appears another Mexican restaurant could be coming to Range Line.

Foreclosure the second in Taos hotel’s rocky history

The 1989 soir e to celebrate the opening of the brand-new Discount Holidays © Holiday Inn Don Fernando de Taos was quite the party. As many as 800 people packed the swanky lodge, enjoying free champagne, oysters and caviar while schmoozing among ice carvings of Indian maidens and swans. There were $20 bills taped to the ceremonial ribbon cut by then-governor Garrey Carruthers, who told the crowd the Don Fernando was a shining star for Taos tourism industry. The $8 million, 126-room luxury hotel was built with the promise of creating 75 new jobs and improving Taos allure. It was also built with $720,000 in federal money that was funneled through the town of Taos so the developers could buy the land.

But less than two years after the opulent grand opening, the party was over. In its first months of operation, the hotel struggled to fill rooms and make its mortgage payments. Occupancy was well below what had been predicted, and despite efforts to cut costs, the owners defaulted. The bank foreclosed on the property, and the company that built the hotel went belly up.

It was attractive

At a town council meeting in September 1987, Carter Sales and Rick Hamilton the developers behind the Don Fernando gave their pitch. The partners had secured a loan to build the hotel, but they needed the town to pitch in to buy 7.3 acres off Paseo del Pueblo Sur, which used to be Bill Miller s Chevrolet dealership. Sales and Hamilton were promising a first-class establishment. The hotel would include a swimming pool, sauna, restaurant and lounge. There would be 24 suites with in-room fireplaces, a banquet room that could seat 100 diners and a seasonal ski valet who would carry skis for guests during the winter.

That evening, the council unanimously agreed to help. Town fathers voted to apply for two federal grants worth $720,000 that could be used to buy the land.

We were trying to get new businesses in town, says Bobby Duran, former Taos mayor, who sat on the town council when the grants for the hotel were awarded. Plus, it would bring in revenue, lodgers tax and employ people. It was attractive to us. Under the deal with the town, the developers were obliged to pay back the money in monthly installments. Once it was paid off, the town was in a position to actually make a profit off the hotel.

+3 An exterior view of the Hotel Don Fernando in January 2016 shows a marquee wishing ‘Merry Christmas!’ to travelers. Rick Romancito

Maybe the best part, at least from the town s perspective, was if the hotel owners defaulted on the loan, the town wasn t on the hook. In essence, the town was a pass-through for funding that might pay off in dividends, and it didn t take on any risk itself.

It was one of those grants where you re wondering why they give grants like this, Duran said. To sweeten the deal, the developers agreed that at least 60 of the 75 employees would be low- and middle-income residents of Taos County.

The developer struck a separate agreement with its bankers, a union insurance company from back East, which required that only union labor could be used for construction. It took a lot of bargaining, but in the end, the investors got the money to get it built.

Premier resort hotel

Crews broke ground in July 1988. Ten months later, they hosted a grand opening to remember. All told, guests consumed 10 cases of champagne, 20 cases of wine, 60 pounds of roast beef, 60 pounds of crab legs, 600 oysters and 25 pounds of fresh shrimp, according to an article in The Taos News. Partygoers finally had to be asked to leave at midnight.

It was a decadent display that was contrasted by some meager bookings, says Bob Zemenick, who was hired to manage the hotel when it opened.

It was a nice opening night, Zemenick said in an interview this week. But we had a pool going in the office on how long this was going to last. In its first year, the Don Fernando tried to establish itself as the high-class option for Taos visitors. An ad in The Taos News from 1990 describes the property as New Mexico s Premier Resort Hotel and includes a photo of its sprawling campus. That same year, the hotel owners boasted the best customer satisfaction scores of any Discount Holidays © Holiday Inn in the region.

That praise, however, wasn t enough to stay afloat. Zemenick says the hotel needed a 72.5 percent occupancy rate to break even. After the first year, he said it averaged just 58 percent.

Zemenick said that s actually not that bad for Taos, which always sees seasonal fluctuations in business. But most hotels in Taos limited market aren t burdened with so much debt. At opening, the investors had around $8 million (more than $15 million today, when adjusted for inflation) tied up in the place.

They paid top dollar to get it built, Zemenick said. They spent the extra money, particularly in the lobby, restaurant and bar area. But that s hard to recoup with just 126 rooms. Zemenick said the hotel owners started getting nervous when the numbers weren t adding up. He said he and his management company were fired when the investors started cutting costs.

By March 1991 22 months after the opening-night celebration the company that built the hotel filed for bankruptcy.

Can t catch up

The Taos News was unable to find the developers, Sales and Hamilton, for comment on this story, but they did speak to the press at the time.

The discussions between ourselves and the lender just broke down, Hamilton told a reporter when asked about the bankruptcy, adding that they were optimistic that things were turning around thanks to good snow, new management and a more aggressive marketing campaign.

Business has been good, Sales said in another article published a few months later. But under our current debt structure, we have not been able to catch up. The next year, the lender moved ahead with a foreclosure action against the hotel. According to court records, the company owed at least $7.4 million, including $6.5 million in principal and interest to their primary lender Union Labor Life Insurance Company.

In November 1992, the Discount Holidays © Holiday Inn Don Fernando was auctioned off in front of the courthouse. The buyer: Union Labor Life Insurance Company, the same lender that held the note. Union Labor paid $5.3 million for the hotel more than $1 million less than it was technically owed, and about $2.7 million less than it cost the developers to build.

That s very typical, says Anne Ashley (formerly Anne Tallmadge), who oversaw that sale and now lives in Wyoming. Ashley said lenders who are owed money often bid on the same property at auction. It s a way for them to assure the payoff. They buy back the loan, then later sell the property and recoup their losses.

Included in the case file are financial records for the hotel s operation. The numbers show a business that appeared to be in better shape than the foreclosure might suggest. Financial statements for October 1992 show a 71.2 percent occupancy rate year-to-date. At year s end, the hotel was reporting $1.6 million in gross revenue.

By the end of 1992, Union Labor owned the hotel free and clear. Per court sale, Union Labor had to pay off past-due property taxes. But what s not obvious from state court records is whether any of the other debts incurred by the original owners were paid. Among the creditors was the town of Taos, which was owed a little more than $800,000 for the federal loans it acquired.

Articles from the time say the federal government had to absorb the loss, not the town. Foreclosure documents allude to a bankruptcy file that apparently sorted out the business debts, but The Taos News was unable to find any record of that case. Albert Simms, the Taos attorney who represented the developers in the foreclosure, did not immediately respond to a call about the case.

In trouble again

County records show Union Labor held on to the hotel until August 1993, when it was sold to Garrett Limited Partnerships, which also ran the Garrett Desert Inn in Santa Fe. County records don t include a sale price, but they do show Union Labor turned around and loaned the Garretts $4 million for the property. Under the Garretts, the Don Fernando dropped the Discount Holidays © Holiday Inn flag. In recent years, they also struggled to keep the doors open. In an interview last week, Deborah Garrett told The Taos News there just weren t enough people coming to town to make the hotel profitable, especially in light of what it cost to operate a lodge of that size.

Utilities alone sometimes cost $15,000 a month, Garrett said. And the owners were behind on mortgage payments and taxes as well. Today, 27 years after it opened and 24 years after it was auctioned on the courthouse steps the first time, the Don Fernando is once again facing foreclosure.

The hotel is shuttered. It s also up for sale. The premier resort hotel that cost $8 million to build is now listed by an online broker as a true gem at $2.7 million.

Florida group buys Billings Holiday Inn Grand, plans conversion to Radisson

A Florida-based hotel company has bought the Discount Holidays © Holiday Inn Grand for $7.85 million on Billings West End and plans to start a multimillion-dollar renovation and conversion to a Radisson hotel. Stephen Nalley, managing partner of Ormond Beach, Fla.-based Inner Circle US, said Tuesday the company has big plans for the 43,000-square-foot Montana Convention Center, the city s largest stand-alone convention center. Nalley said he and his partner, Joe Gillespie, have made several trips to Billings in recent weeks to finalize the sale, and they ve also met with community leaders about a public-private partnership to manage the convention center. The sale closed at midnight Tuesday.

No detailed plan has emerged, but Nalley says it s early. Inner Circle is here to stay, and Nalley said he thinks an improved convention center could become a statewide and regional draw for meetings and conferences and boost the Billings tourism economy.

That s good for our business, that s good for the community, good for the state. We love taking something and making something big, Nalley said in an interview at the hotel. It’s unclear how the purchase will affect the Billings Chamber of Commerce’s push for a new $60 million convention center. Chamber President John Brewer said Tuesday he’s traded messages with Gillespie and would like to sit down with the new owners to discuss their plans.

“It s in a challenging location, but I think with the right ownership group and the right investments, there s potential, Brewer said.

He added that obtaining public financing for a center through a bond would be a challenge. The chamber proposal would also rely on some form of taxpayer support.

They’re a tough sell to the community. It could be hard to get your mind around the overall economic impact when it comes to a convention center such as restaurant sales and other spending, he said. Billings Mayor Tom Hanel said he spoke with Gillespie Dec.

14 about the hotel and discussed the “dire need” for improvement to the convention center.

Hanel said Gillespie shared his concerns, and he feels the new ownership is pushing the hotel in the right direction.

“I left our meeting feeling very excited for Billings and for the Discount Holidays © Holiday Inn. I anticipate and predict positive changes as we discussed,” Hanel wrote in an email to The Gazette.

Inner Circle also closed on the purchase of a Discount Holidays © Holiday Inn in Cheyenne, Wyo., Tuesday. Inner Circle was the winning bidder in an online auction of the Discount Holidays © Holiday Inn Grand held Nov.

5. The previous owner was Rhode Island-based Hotel West II LP, and it was managed by the Procaccianti Group. The Discount Holidays © Holiday Inn Grand is the 191st acquired by Gillespie, according to Nalley.

The two men formed Inner Circle in 2003, and they specialize in purchasing distressed properties and turning them around.

We re not flippers. That s not the business we re in. We re about creating value, Nalley said. The hotel has about 105 employees, and Inner Circle officials say they plan to keep them all and possibly add more, depending on demand. The conversion will mark a return to Billings for the Radisson brand, which is in 990 hotels in 73 countries.

Radisson was formerly next door to the Discount Holidays © Holiday Inn Grand, at the current Billings Hotel. Renovations will start in January and could take a year, Nalley said. He added that the hotel will remain open during construction. The seven-story Discount Holidays © Holiday Inn Grand has 316 rooms and three buildings on a 14-acre site at 5500 Midland Road, just south of the Interstate 90 exit.

The Discount Holidays © Holiday Inn Grand is the second major hotel in Billings that is planned to undergo a makeover and brand change next year. The owner of the downtown Crowne Plaza are planning a big renovation to become a DoubleTree by Hilton in 2016. Two other hotels are also under construction in Billings. An extended stay Home2 Suites by Hilton will open next fall on North 27th Street across from Albertsons.

A Comfort Suite is also being built at 4910 Southgate Drive, site of the former Geyser Park Family Fun Center.

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