TIFA Extends Keefer Deadline, Searches for Dawn Operator
TIFA denied CL Red's proposal to close out its Keefer promissory note, but granted an CL an extension to fulfill its terms fully.
Hillsdale City Hall—At a Tuesday morning meeting, the City of Hillsdale’s Tax Increment Finance Authority (TIFA) voted to extend CL Red’s Keefer House Hotel deadline to complete its work to 30 September.
CL’s Steven Hussey wrote a letter to TIFA requesting that TIFA agree to close out its 18 October, 2018 promissory note requiring “substantial completion” of property redevelopment.
“The Keefer House Hotel, nearing completion, will drive economic activity in Downtown Hillsdale,” the note claims. “With the note set to expire April 15, 2025, we request TIFA deem it satisfied. If TIFA disagrees, we seek an extension to September 30, 2025.”
CL’s Brant Cohen, who presented the proposal, told TIFA that the “conditions were satisfied,” and he emphasized that “current investment far exceeds assessed value.”
If the promissory note were to be closed out, TIFA would functionally terminate its oversight of the Keefer project.
TIFA member Luke Robson expressed a preference for the 30 September deadline. According to Robson, the legal definition of “substantial completion” indicates that the project has been completed in full, meaning that the Keefer would be able to function as an operating hotel.
TIFA Chair Andrew Gelzer agreed, proposing the synchronization of TIFA’s deadline with city council’s property tax abatement for the property, which is also 30 September, 2025, in accordance with CL’s alternative proposal.
The motion to extend the promissory note to 30 September carried in a 7-2 vote, with Gelzer abstaining.
The members of the board also agreed to budget for an advertising package for the Dawn Theater. TIFA is searching for a new Dawn management company after CL backed out of its management deal earlier this year.
According to Gelzer’s update during the meeting, two parties have approached the Dawn with “serious questions,” though no offers have yet been received.
Gelzer proposed that TIFA create an advertising budget to spread the word about the Dawn Theater in order to draw in potential applicants. The board agreed to appropriate $12,000—in addition to $4,000 paid to TIFA by CL for advertising and liquor license transfer—to run a two-to-three month advertising campaign.
Applicants previously had until 19 May, 2025 to submit their applications, which must include a cover letter, a company profile, an operational plan, a financial plan, and references, but the board voted unanimously to push back the deadline to 8 July.
CL’s contract to manage the Dawn Theater will officially end on 17 June.
Jacob Bruns
Related Stories:
TIFA Seeking Applications for New Management of the Dawn Theater
Appendix:
Back around 2000, my 5 year old daughter sold her GameBoy to the 12 year old neighbor boy for $5. She thought she had made the greatest deal of her lifetime. Except at the time Gameboy's were going for $50. 8 years later, she was running her own small business.
Bad mistake she made? Sure, but she learned from it. 8 years later on the Keefer, and we still see the taxpayers being conned.
All that being said, her parents did step in at the time... and got the gameboy back after talking to the boy's parents. What missing here from the Keefer is parental oversight.... TIFA is the unmaturing 5 year old child, and council is the absent parents.
I get the theory you work with what you have, but it's clearly obvious to anyone CLRED is preparing to exit.... and for good reason. If it's not obvious the project was too much for them, the economic need has diminished due to the College doing their own hotel... then if anything the fact TIFA is having to market the RFP for the Dawn so hard should make it obvious.
There is no business case here.
If TIFA won't do it, council should have a open and frank discussion on "what if's" should CLRED disappear and the city has been left holding the bag.... which if you want to be honest, they have since about 2005... when they funded Horton's acquisition of various deadend properties in the city... which the taxpayers had to bail out multiple times.
Government is not the solution, goverment is the problem.
LOL. Just LOL at city council and TIFA. L.O.L.! Is it true Councilman Stuchell owns the building next door? Did he not know about the "foundation issues"? .... I heard, don't know if its true but I heard he was going to make it into an air bnb.... I know my township supervisor owns one just up the street from the Keefer.... "everything here is connected JAMES" PS.