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Lindley Estes is a business writer for The Free Lance-Star and Fredericksburg.com. This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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Kalahari Resorts no longer pursuing same financing plan

Kalahari Resorts yesterday informed Fredericksburg City Manager Beverly Cameron that it will not be using the $30 million in Recovery Zone Facility bonds from the American Recovery and Reinvestment Act. Kalahari says it is still pursuing other sources of financing for the waterpark, hotel and conference center at Celebrate Virginia South and remains committed to the project. See tomorrow’s FLS for the rest of the story.

Click here for Kalahari’s letter to Cameron.

Click here for Cameron’s letter to the state.

Here is a press release I just got from Kalahari with a statement from company president Todd Nelson:

Today Kalahari Resorts advised the City of Fredericksburg, its Economic Development Authority and Governor McDonnell’s office that we will not utilize the allocation of $30 million of Recovery Zone Facilities Bonds by the October 15 deadline to partially finance the development of a $260 million Kalahari Resort in Fredericksburg, Va. 

Due to the current lending climate, Kalahari Resorts has been unable to secure the balance of the financing necessary to build the resort. We have invested significantly in the development of this project and will continue to pursue financing options. We are preceding the deadline with this announcement to make certain that the Governor’s office has sufficient time to re-allocate the bonds to other projects.

 Kalahari Resorts’ properties in Sandusky, Ohio and Wisconsin Dells, Wis. have experienced significant 2010 year-over-year financial results amid difficult economic conditions. We remain committed to opening Kalahari Resort in Fredericksburg, Va. which would provide 1,230 jobs and contribute $174 million to the Fredericksburg regional economy.

Permalink: http://news.fredericksburg.com/businessbrowser/2010/08/24/kalahari-resorts-no-longer-pursuing-same-financing-plan/

  • Heather

    Surprise, surprise! This project will be down the drain as it long ago should have been. They will never be able to fund this project in this economy and even state they are not “comfortable” investing any more of their own money to do such. Why should we? Time to move on Fredericksburg.