The Colorado Educational and Cultural Facilities Authority (CECFA) in the US is set to acquire the historic Stanley Hotel in Estes Park, reported The Colorado Sun.
The authority, which aids non-profit groups in funding capital projects, will create a subsidiary to manage the bond borrowing necessary for the hotel's revamp.
This move follows the collapse of a deal with an Arizona non-profit. The arrangement involved the Community Finance Corporation becoming Stanley Hotel's owner and then transferring ownership to CECFA after repaying up to $450m in bonds.
However, the revised plan eliminates this intermediary step, with CECFA directly stepping in as the borrower.
The Grand Heritage Hotel Group, which has managed the Stanley since the 1990s, will continue to operate the 140-room hotel.
The bond sale, aimed at raising $450m, is intended to finance the hotel's purchase for $169m, invest $40m in the Grand Heritage Group's Fall River Village Resort, and allocate $54m for a new film centre at the Stanley Hotel.
CECFA executive director Mark Heller was quoted by BizWest as saying in an emailed statement: “CECFA is already a strong partner in the proposed financing of the Stanley Film Center. The vision for the property, including an exciting new partnership with Blumhouse, has incredible potential to attract new, out-of-state visitors to Estes Park and Colorado, and strengthen CECFA’s ability to support educational and cultural facilities across the state.”
CECFA's next steps include legislative approval to expand its operational scope and the subsequent sale of bonds to finance the acquisition and development plans.
Heller added: “We are excited to see the Stanley Hotel and Estes Park welcome the Sundance Institute’s world-class Directors Lab this May, showcasing the many resources our state offers the film industry.”
