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The Skirvin Hotel

Skirvin HotelNMR made loans in the total amount of $23,000,000 during 2006 to Skirvin Partners LLC, to help fund the $55,000,000 renovation of the city's historic Skirvin Hotel, a landmark building in the heart of downtown that had been boarded up since 1988. Listed on the National Register of Historic Places, the property was acquired by the city in 2002 after a committee appointed by the mayor recommended that the building be salvaged and restored as a full-service hotel. Three years later the developer selected by the Oklahoma City Urban Renewal Authority from six proposals was still struggling to complete the financing, even with multiple layers of public support (see below).  When NMR and REI New Markets (another CDE) jointly agreed to provide $31,500,000 in New Market Tax Credit financing to get the project over the hump, Mayor Mick Cornett wrote, "without your commitment of... New Markets Tax Credits, this project would not have been possible."

The tax credits provided by NMR and REI have leveraged a number of other public and private funding sources. In addition to developer equity, private first and second mortgage financing, and federal and state historic tax credits, the project has utilized a section 108 loan, a federal EDI grant, a brownfield loan, and bond proceeds Skirvin Hotel Interiorfrom two separate tax-increment-financing districts. Public assistance funding administered by various agencies of the city has contributed $18,000,000 of the total project costs of $55,000,000.

Community impacts and benefits from this project, as acknowledged by resolution of the Oklahoma City Council, were projected to include "the generation of more than 400 construction jobs, the creation of approximately 170 permanent hotel jobs (FTEs), the elimination of one of the starkest examples of blight remaining downtown, the addition of 225 hotel rooms one block from the convention center, increased tourism and convention business capacity, the preservation of one of the most historically significant structures in the state, increased ad valorem and sales tax revenues, improved property values, [and] additional direct and indirect impacts on the state and local economy". Based on figures from the general contractor, actual construction jobs (FTEs) totaled 404, and based on the hotel manager's actual staffing plan, the project has created 305 permanent hotel jobs (FTEs), of which approximately 283 jobs would be considered accessible, based on education or training requirements, to Low Income Persons. These figures do not include indirect or induced effects, which should approximately double the count of permanent jobs created. Catalytic impacts on the neighborhood included the relocation and expansion of the B.C. Clark jewelry store, the renovation of the 101 Park Avenue building, the purchase and renovation of the Kerr McGee building by SandRidge Energy, and the relocation of several suburban tenants to nearby downtown buildings.

In a letter to Charles E. Wiggin dated January 25, 2006, Mayor Mick Cornett wrote "The closing of the Skirvin Hotel transaction last month was a great achievement for Oklahoma City. I know that everyone working on the project put in a great deal of time and effort. I am especially grateful to you for the critical role that New Markets Redevelopment Limited Partnership Skirvin Hotel Lobby [NMR] played and for your leadership in overcoming the many difficult aspects of this complex transaction. Your understanding of the potential financing options for this project, your willingness to seek creative solutions to the challenges presented, and, above all, your commitment to generating economic development in our community brought us to the timely closing of the transaction. The reopening of this grand hotel a year from now - after eighteen long years of being closed - will be a great cause for celebration for everyone in Oklahoma City and indeed, across the state of Oklahoma. Thank you for the valuable contribution you and New Markets Redevelopment are making to our fine city."

New Markets Redevelopment, LLC
5801 N. Broadway Extension, Suite 120
Oklahoma City, Oklahoma 73118
405.842.0100, Fax 405.848.8248