FT. LAUDERDALE— Broward County commissioners bickered for more than nine hours earlier this week with developer R. Donahue Peebles and his hotel deal partner, Wyndham International over the Broward County Convention Hotel. Under the current version of the contract, a $4-per-night surcharge on all rooms would go to the county to recoup its $11 million subsidy for the project. Wyndham argued that the charge would put it at a disadvantage in the marketplace, and suggested applying the charge only to rooms booked through the convention center. But the commissioners were unwilling to give on that issue, according to the Miami Herald. In addition, some commissioners were befuddled to learn that the interest rate on Peebles’ loan from Fremont Bank is 19%, and that Peebles does not have a firm closing date, the Herald reported. The commission added language to the contract that requires Peebles to close on the loan by November 15. That may be a problem for the bank, since the county also retains the right to terminate the lease, the collateral for the loan, as late as December 15. Currently, lawyers are formalizing the contract changes for the proposed $81 million convention center hotel. However, the whole deal is on life support until Wyndhams board decides whether the international hotel chain can accept the latest version of the contract. The company’s deadline is July 27. SOURCE: The Miami Herald
