BIRMINGHAM NEWS - Thursday, November 15, 2007

Financing expected by spring
Credit crunch delayed developer's plans
ROY L. WILLIAMS
News staff writer
A Memphis developer said Wednesday he expects to secure the financing necessary to break ground on a downtown Birmingham entertainment district by early spring.

Performa Entertainment Real Estate's John Elkington, who initially hoped to secure funding to begin construction by year-end, said the national credit crunch has delayed his plans.

Performa, best known for the Beale Street development in Memphis, was tapped by the Birmingham-Jefferson Convention Complex to build a district of nightclubs, restaurants and retail shops adjacent to its facilities.

"This is a tough environment to be seeking financing in," Elkington said in an interview. "But things are going well and we're optimistic we will be ready to get started in the first quarter of 2008."

In September, Elkington announced that "American Idol" winners TAYLOR HICKS and Ruben Studdard would open nightclubs in the district. At the time, he said the district would probably involve a $50 million investment, not counting two planned hotels.

On Wednesday, Elkington said the project as of now will probably cost $40 million to build, though that could change. The two hotels book-ending the district would cost about $20 million each, raising the total investment to $80 million, he said.

During the BJCC board meeting, Elkington said Brian Kuzniar and Michael Potter of DTZ Rockwood in Chicago are helping Performa seek financing for the project.

Kuzniar, senior vice president of financial services for DTZ Rockwood, said he and Potter are gathering information about Birmingham that will be presented to potential financial backers for the project. They met with the Performa's architect, Fred Keith of Birmingham, along with officials from the Birmingham Regional Chamber of Commerce and Operation New Birmingham.

Elkington said he also planned to take them on a tour of the University of Alabama at Birmingham, Five Points South and other area attractions.

"We are impressed so far," Kuzniar said. "John has great plans and there seems to be a lot of excitement. There are still some things that must be done to make this happen."

Elkington said if Performa gains financial commitments by next spring, the district would open by early summer 2009.

BJCC Executive Director Jack Fields said he and Elkington met with new Birmingham Mayor Larry Langford last week. Fields said the mayor requested financial costs on an expandable 40,000-seat arena as well as an expandable 55,000-seat and 57,500-seat dome.

Fields said consultants for the BJCC are working on cost estimates as well as a video Langford requested.

E-mail: rwilliams@bhamnews.com
http://www.al.com/business/birminghamnews/index.ssf?/base/business/1195134790247600.xml&coll=2

thanks Jodi once again, I love seeing Taylors name in print ha..