Investors Assemble Financial Package For Proposed CA Hotel

LONG BEACH, CA— Backers of the proposed Hotel DOrsay say they are completing a financial package that would allow construction to begin on the 176-room boutique hotel in early September. Alain Sarfatti, chief representative of the projects French and Swiss development group, said Aug. 14 that he has all but finished negotiations with an undisclosed California insurance company that has tentatively offered to help pay for the $35 million project. Once the financial package is complete, the citys Redevelopment Agency has agreed to sell the hotel group land it needs to proceed with the project. Redevelopment Agency project officer Robert Zur Schmiede, who has been assigned to keep the agencys board members up to date on the project, said the final issue under discussion involves the amount of cash reserves that the company must maintain. Sarfattis group of French and Swiss investors have been working against time to seal a financing deal after losing a previous arrangement with a British financial group earlier this year. The agency board, after expressing its frustration with the financing delay, gave Sarfattis group six months to finalize the deal on March 12. As envisioned in 1999, the 232,031-square-foot Hotel DOrsay would be a four-star hotel. It has been a focus of the citys redevelopment efforts because experts say the city lacks sufficient hotel space downtown. SOURCE: Press-Telegram