Oct. 26, 2006 — While Public Finance Authority board members voted Thursday to give Golden Gaming Resorts another extension to obtain financing for the construction of a proposed hotel and resort on St. Croix, they could not give the company a guarantee on a $15 million "interim loan," which would be used to start construction on the proposed development.
After the meeting, Paul Golden, the company's chief executive officer, said in order to get the PFA's approval, the Legislature would first have to authorize the guarantee.
During a Committee of the Whole hearing held earlier in the day, Sen. Norman Jn Baptiste said a petition had been circulated to put Golden on the agenda for Friday's emergency Senate session. After the meeting, Jn Baptiste said that a majority of senators would have to sign the petition in order for the matter to be considered.
However, he said that only "a few of the St. Thomas" senators had signed the document, along with Sens. Craig W. Barshinger and Pedro "Pete" Encarnacion.
Golden later said that "two banks" have indicated they would be willing to provide start-up financing for the project — if the local government provides Golden Gaming with a loan guarantee. The land slated for development would be put up as collateral for the loan, he added.
"We would use the interim financing to start construction on the project, which we would like to begin in November," Golden said.
A letter submitted to the PFA by attorney Treston Moore, representing Golden Gaming, indicates the company is also "currently evaluating two financial packages from substantial lenders ."
While Golden did not disclose the identity of the lenders, he did explain that the packages would provide $150 million worth of financing for the project.
However, since PFA board members did "not have the information necessary" to approve the guarantee, the matter will be considered at another time, he added.
When contacted later Thursday evening, Golden said he had received word that the issue would not be placed on the Senate agenda on Friday.
The PFA's latest extension gives Golden until Dec. 31 to obtain the rest of the financing for the project.
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