I am amazed it survived as long as it did.

Think the construction process and Grafton street closure lasted longer than the business

A big joke all around

Anyone know what this means for Redwater? It is a separate entity, isn't it? Unless Homburg owns Vintage Group?

It's separate from the hotel, they're saying they should be fine.

But the entrance is through the hotel... just not sure how that would work. I would be so sad if they closed!

Time for a buy out. Province or maybe province-backed loan-

Murphy Enterprises?

So you want the province to bail out the province?

Is my memory off or weren't the province warned that this EXACT thing would happen before any of this started? The only person I remember opposing Homburg was the former president of UPEI who helped stop the "Real Estate University of PEI".

so now the taxpayers and contractors are all SOL, right?

Well - we are not totally SOL.

We now own one of the ugliest building in C-town.

Bought with 16 million of our money - with no real expectation of where any other money was coming from - built way over budget - and without the original plans in mind.

If the search engine worked on info - I think I could dig down and show where I said it was a scam from long before first brick.

The day they lost much of the facade (they stripped the Holman's facade and sent it off to be be restored) at the plant (where it was sent to be restored) I knew we were snookered.

Plan B hell - let's bring on Plan f**ked.

It should be demolished.

Phil

There were definite warning signs, and quite a few deviations from the original plan of the hotel, I don't know how anyone involved didn't feel very nervous about it.
I find it very frustrating how un-frugal our government appears to be with how it spends its money, especially with something that made a huge impact on our city's structure.

Maybe the donation Homburg made to the confed center made people forget about their questionable financial practices. They had applied for creditor protection, which obviously indicates some issues with the company.

I'm glad that the plan to take over the block of University Ave where Cedars is was never realized as we'd have moved local businesses out for this failed hotel.

I never liked how the Holman looked and I felt that part of Grafton, on a sentimental level felt like it wasn't for the people living in town anymore as it was for people visiting. I know that's not worded very well, it just felt out of place.

If certain people had their way I'm sure we'd see much of the familiar parts of downtown transform into beige panelled store fronts.

In a recent thread where Keynesian economics was discussed I cited 'mal-investment' as one of the negative consequences of governments spending tax money to 'spur' the economy.

viewtopic.php?f=26&t=32505&p=424810&hilit=Keynesian&sid=7655ebedb0768d142807411f125c0def#p424810

Well friends, if anyone was wondering what was meant by 'mal-investment' this debacle will serve as a great definition of the term.

Ed

investments that fall through are bad, stunning commentary

I wonder if the 2 million donation to the Confed center was from the loan from the government.

what i want to know is who do we blame?!?!?

That's definitely been speculated.

I really hope the powers that be will change the name back to the Confederation Center Main Stage. No reason at all to keep it named after Homburg. Donation, what a joke!

lol I guess not

I am sure the minister of finance reviewed/had input on this application before putting tax money at risk by providing in excess of $16m in loan guarantees.

He was obviously comfortable with the strength of the company, the business plan presented and the competency of the individuals dispersing the funds to ensure that the terms of approval were met etc.

Were there not special requirements as to parking, design, funding dispersal schedules to be followed?

Lets see, a hotel on leased land with no parking, no restaurant or bar and that bled money since the doors opened. It will likely sell for about $8m. Until we get title and sell it, which will take awhile, the maintenance costs as well as ongoing legal fees will be hefty. Obviously you just don't board it up, slap a Re/Max sign on it and drive by it once a month like your standard foreclosure isn't that correct Wes?

Lets see if you can better manage the foreclosure than the approval.

Curious, would you have booked that deal at your previous place of employment ?

This whole fiasco reeks. Surprised gov't getting an easy ride on this one from the press.

Calico

P.S. - To all the contractors and suppliers out there, get on with your life, you will not see a penny owed to you.

I'm pretty sure this is one Island issue that can bring everyone together without regard to political allegiance to agree that the current government is either corrupt or incompetent.