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Walker County Commissioner Bebe Heiskell said, "First and foremost, we want to thank Gov. Sonny Perdue and Sen. Jeff Mullis for believing in us and helping make this a reality for Walker County.

Walker County officials reveal details of planned hotel and conference center
by Matt Ledger
On Nov. 29 the Walker County Development Authority will hold a public hearing about issuing $15 million in recovery zone bonds to Canyon Ridge Holdings for a proposed hotel and convention center on Lookout Mountain.

The Georgia Department of Community Affairs made the requested $15 million available to the Walker County Development Authority as of Nov. 18, according to Larry Brooks, Walker County resource coordinator.

Bonds aiding projects in difficult times

A recovery zone bond is designed for an area or municipality of more than 100,000 people, having significant poverty, unemployment and foreclosures. The bond program ends December.

Prior to the 2009 stimulus plan, recovery zone bonds were used exclusively for manufacturing facilities.

The Stimulus Act prohibits using recovery zone bonds on projects like commercial golf courses, country clubs, residential rental property, race tracks, and massage parlors, to name a few, but the bonds are allowed to be used for hotels, banks, offices, and shopping centers.

This aids in financing a commercial development with tax-exempt funds, according to the U.S. Department of Commerce.

In the summer of 2009, $2.5 million was the first allotment set aside in the first round of stimulus regarding economic development projects, according to Brooks.

Only a few municipalities took advantage of the bonds in 2009, mostly because projects did not fit the readiness criteria of the Stimulus Act.

Walker County re-applied for $12.5 million of bonds in September 2010 from the remaining amount allocated to Georgia, which was made available on Nov. 18.

Prior to the recovery bonds three investors have contributed to the project: Canyon Ridge Club LLC for $9.5 million, Canyon Ridge Resorts LLC for $1.5 million, and Scenic Land Investments for $600,000, for a total of $11,684,000 committed to the project.

The total cost of the project is now listed at $56,634,000, according to the Canyon Ridge business plan.

New investors have committed $6.5 million to the plan, totaling 32% from private equity, and the majority (59%) from “senior development bonds,” which include the recovery zone bonds.

The $15 million recovery bond portion of funding is another ARRA (American Reinvestment and Recovery Act of 2009) federal stimulus funded project undertaken in Walker County.

Hotel plans revamped

The project is a 150-room hotel adjoined by a convention center atop Lookout Mountain called Canyon Ridge Hotel and Convention Center, neighboring the Canyon Ridge Golf Course.

Randy Baker of RCB Management Group of Rising Fawn owns the golf course and is the developer of the convention center project.

The concept of a hotel on Lookout Mountain has been considered for a few years. One of the original estimates came in at more than $300 million under a previous developer.

“I have had the best advice in the past two and a half years on this project,” Walker County commissioner Bebe Heiskell said.

The project had been scaled back to $120 million by the current developer and has been even further refined into phases, the first of which is the hotel and convention center, according to Heiskell.

A $3 million foreclosure notice published in the Dade Sentinel in April led to rumors of a county purchase of the Canyon Ridge Golf Course.

Those rumor resurfaced at the onset of bonds being sought for a scarcely-known project in the vicinity.

“We are not buying the golf course,” Heiskell emphasized.

A vision of increasing tourism

“I am only doing this (Canyon Ridge Hotel and Convention Center) within the best of opportunities for Walker County and to help expand our tourism,” Heiskell said.

The Walker County Development Authority endorsed the hotel plans late this summer, according to Brooks.

“Chattanooga is one of the fastest growing regions in America,” Brooks said, pointing to a Volkswagen plant slated to open next year in Chattanooga.

The forecasted growth and thousands of jobs coming online in the next few years to the metro-Chattanooga area have the surrounding municipalities actively engaged in economic development projects.

Very recently Bradley County, Tenn., announced “Project Infinity,” an undisclosed but household name company that will be adding more than 1,200 jobs to the region.

The state of Georgia recognizes this trend as well and plans to capitalize, more projects in neighboring Georgia counties are possible, similar to the recently opened Costco in Fort Oglethorpe.

Brooks sites DNR statistics that more than 250,000 visitors travel through the McLemore Cove area each year.

Gov. Sonny Purdue has even seen the plans for the project and the potential for the area, according to Brooks.

“Many people saw the vision of what that convention center could mean to the community,” Brooks said.

The Walker County Development Authority will hold the title for the property until it is paid in full, according to Heiskell.

Two feasibility studies have been conducted on the hotel project, one by Canyon Ridge and the second by an independent firm representing the Walker County Development Authority.

She views it as something similar to Brasstown Valley in north Georgia, stating it would be “mountain friendly with a rustic charm”.

The business plan for the project cites its centralized location between Birmingham, Atlanta and Nashville, an area of 12 million people.

That same plan also acknowledges that “keeping the design and construction local will maximize job creation for the regional market and enlist local knowledge and expertise to ensure success.”

If plans progress on schedule, the resort would be open for the tourism boom expected from the 150th anniversary of the Battle of Chickamauga in September 2013.

“As the economy returns to normal we will be well positioned,” Heiskell said about the expected increase in tourism.

It will take 16 months to build following ground-breaking, according to the business plan for the development.

The conference center portion of the development will be approximately 17,091 square feet, sitting on 430 acres, which include the 165-acre golf course.

There will be more than 250 jobs created at the facility once it begins operating.

The project has already received a number of commitments, of future events to be held at the facility, from several state agencies in Georgia, according to Heiskell.

Sonseta International Hotels will oversee the management of the hotel once built.

The average room rate is anticipated to be $190 per night for the first year, with an anticipated occupancy of 62%, according to the business plan.

The second and third phase will include retail development, according to Heiskell.

“There are lots of opportunities this (hotel) could develop that have never been considered before,” Heiskell said, “I am thinking we are on the cusp of significant growth.”

« mespah wrote on Wednesday, Nov 24 at 10:46 PM »
Notice the time of the meeting was not mentioned in the article... but socmom05 said it is at noon on the 29th.

Bebe would never set a time that would get the fewest people there would she? Noon? Really? A time when the few folks in Walker Co that have jobs can't be there.

Article doesn't mention that the developer is in the paper this month for foreclosure.

Also there is a private company in the process of preparing to build a hotel, convention center and resort just down the road from Canyon Ridge in Dade Co.

The misguided $862 billion federal “stimulus” is being spent — unwisely in our view — not just in other parts of the United States but in our area of Tennessee and Georgia as well.

In fairness, we cannot criticize the use of stimulus funds only when they are spent “somewhere else,” then praise that unconstitutional spending when it goes toward local projects.

Take, for instance, recent news that $15 million from the stimulus will be used to help build a hotel and conference center at a golf facility in Lookout Mountain, Ga.

We most assuredly are not against the idea of hotels on beautiful Lookout Mountain. Nor do we begrudge Walker County, Ga., the new tourists it might attract by being home to such a facility. The proposed hotel and conference center might even have some economic benefit for Chattanooga by possibly hiring some workers from this city. We obviously do not oppose that.

But it is not proper or constitutional federal business to pay for the construction of a hotel and conference center with millions of taxpayer dollars. What’s next? Should the government also build gas stations and grocery stores?

We encourage such projects — when they are funded by private investment and by the free-market choices of consumers who are willing to pay the true, unsubsidized cost for the goods and services provided.

But we cannot downplay the wrongness of the stimulus just because it benefits some projects in “our backyard.” We do not really fault the Lookout Mountain facility for accepting that stimulus money, but we fault Washington for authorizing the stimulus to begin with.

There will be more than 250 jobs created at the facility once it begins operating

ROCK SPRING, Ga. -- Walker County residents won't be on the hook for any of the $15 million in federal stimulus money being sought for a proposed hotel and conference center on Lookout Mountain, county officials told a crowd Monday.

What officials didn't admit until repeated questions from the crowd is that a property tax increase could be levied on residents to make up $36 million in bonds backed by the county if the development goes bankrupt.
"Is it the right thing to do for us as taxpayers to stick our neck out for a hotel?" asked Brian Hart, of Villanow, Ga.

Walker officials have only a few days to decide whether or not to approve a bond issue that would give the development $15 million in stimulus money to pay for part of the $51 million tab.

On Monday, about 50 residents flooded a meeting room at the Walker County Civic Center, expressing wariness of so-called "free money."

"Nobody's for this thing that I've talked to," said LaFayette, Ga., resident Jack Hart, who led the charge at the hearing for those against any public funding for the 150-room hotel and conference center.

The meeting began with county officials explaining that local residents would not be on responsible for the $15 million in stimulus bonds that would be issued to a collection of companies who want to build the project.

"The county has no obligation," said Don Oliver, the attorney for the Walker County "Not a dollar. Zero."

When Oliver first mentioned the property tax increase of 1 mill that's been pledged to back the remaining $36 million non-stimulus bonds, a murmur spread through the crowd.

Walker County resident Barry Walston said he's seen retreat centers and resorts across the country fall on hard times and said it was a bad time to start such a business.

"They're all in trouble," Walston said.

Development authority member Virgil Sperry said he couldn't guarantee a "screaming success," but said he is "confident that (hotel) has good prospects."

Oliver said the project could still fall through if investors don't support the project. If they do, he said, that's evidence that the hotel complex is a solid venture.

The county must decide whether or not to move forward by Sunday.

Contact staff writer Andy Johns at ajohns@timesfreepress.com or call 423-757-6324

URAQuack wrote on Sunday, Dec 05 at 05:32 PM »
Interesting that the property owners of Canyon Ridge are AGAINST the plan as well.

Fellow Homeowners,

You will be receiving (or may have already received) a copy of the attached e-mail. There is no opportunity to vote no on this e-mail and your affirmation per Randy's instructions will commit you to a 30 year property tax increase of 20mil which basically doubles that which you are paying now. The "Special Tax District” is a vehicle which basically guarantees the 20 million of the bonds which are referenced in Randy's letter. The amount of the "Special Tax District" is $6,000,000 plus interest over 30 years.

Rusty Boyd, Al Gordy, David Hunter and myself met with the county today for over two hours with the sole purpose of getting a better understanding of the hotel project and what made up the totals. Bebe Heiskell (Commissioner) and David Ashburn (County Coordinator) were very pleasant and forthcoming. That being said, they thought that the mil rate would be under 4.5mils and even that would have to have homeowner voter approval. Our current mil rate is 22 schools, etc. In trying to decipher how the funds are being distributed they admitted that a good deal of the money will be paid to Randy to reduce his debt obligations. Example would be paying Randy $9.5 million for the golf course and then him deeding same back to the project. I even made the comment to

David Ashburn, that the project represented a "get out of debt free card," for Randy Baker.

All this to an individual who hasn't paid property taxes to Walker County for two years.

The cost to build a fire station across the road (according to David Ashburn) would be about $250,000. The county already has equipment to put in it and would possibly get some support from Dade Co. as well. That number is way less than $6 million.

I think it would be reasonable to expect giving the home owners all the information regarding the proceeds to be distributed for the new hotel project, a description of same, impacts to us as homeowners (usage of facilities), and feasibility studies completed using the Sonesta Hotel Group as the impetus for revenue generation.

I also understand that Randy has told Derek and Doug there will be need no further need of their services after December 31st.

If you vote yes to Randy's e-mail you be committing yourself to the financing of a project which we have been privy to very little detail. I ask that you take careful consideration. As for myself, and a few others I am aware of at this point, it would be a definite no and I don't appreciate some of the misrepresentations (I.e. stating mil rate without letting everyone know the dollar value of same and impact to individual homeowners).

URAQuack wrote on Saturday, Dec 04 at 09:26 AM »
Hotel Project

November 30, 2010



I am pleased to announce that after nearly 3 years of effort, it appears the much-anticipated Hotel Conference Center and Spa is about to become a reality. The Walker County Development Authority reaffirmed its commitment and chose Grove Street Partners out of Atlanta as the project developer. The hotel will be a Sonesta Hotel and will feature 150 Rooms, Conference Center and Spa. The hotel will also feature a series of restaurants and all facilities will be available to our property owners. The County, along with State officials was successful in obtaining $15M in Recovery Zone Bonds that will reduce the overall cost of the project. The total investment in Phase I is $56M with $36M being Government backed bonds and $20M in Equity and other bonds. Hotel Construction is slated to begin May 1, 2011 and should take approximately 16 months to complete.



Additionally, Phase I of the project includes the development of a general store directly across the street that will anchor a future town center. This town center will accommodate retail shops, which will provide services and conveniences enhancing the quality of life on the for the community.



Project funding provides for a major renovation to the golf course. Golf architect John LaFoy is developing the renovation plan. Significant improvements include renovation of all tee complexes, rebuilding all bunkers, restructuring several green complexes and building one new hole. The hotel will be located in the area around the 18th green. The golf course will close for public play in January 2011 and will reopen in September 2012. Fairways will be recapped and an extensive grow-in plan will be implemented. During the renovation, limited play will be available to members only.



The County, in conjunction with their backing $36M in bonds directly benefitting property owners of Canyon Ridge, will create a Special Tax District, (STD), covering property in Canyon Ridge. Beginning in the 2012 tax period, the STD will add 20 mills onto your assessed value with proceeds used exclusively for the benefit of the hotel and our community.



Benefits from the STD are:

a. The County will assume financial responsibility of the water treatment facilities

b. Maintenance of the guard shack and most common property

c. Maintenance liability of the road leading from the entrance to the hotel

d. Construction of a fire rescue station across the street from our entrance significantly reducing property owners insurance.

e. Financial stability to the maintenance, operation and improvement of the golf course

f. Financial responsibility to maintain and operate all Club amenities

g. Open community for law enforcement patrol



This project is mutually beneficial to Walker County and Canyon Ridge capturing and growing a vibrant tourism trade, attracting potential property owners, stabilizing property values and position us all to recover lost equity. It will create jobs and gain national recognition of what Walker County and Canyon Ridge have to offer. I will host a meeting to provide additional details on December 11. This project would not be possible but for the visionary leadership of Commissioner Bebe Heiskell who is making this significant commitment against risk adverse headwinds. It is imperative that we show her our unified support. Therefore, I am asking you to send an email to yes@canyonridgeclub.com affirming your support of the project as proposed by Walker County. The email petitions will be forwarded to the Commissioner and to the Walker Development Authority. Please respond at your earliest convenience and I hope you all have a Merry Christmas!!!