More On The Biltmore Disaster
November 18, 2011 Leave a comment
There are plenty of reasons to think that the Biltmore lease change is a bad deal for Coral Gables. Here are a few of them. In short, the Biltmore management cannot be trusted. It would be a good time during the recession to look for a new management team that will serve the needs of all Coral Gables citizens and not just a few politically connected people.
Seaway’s management subsidiaries haven’t paid hotel and golf course rent for two and a half years. It has withheld financial reports, and failed to properly maintain the property. Leading up to their non-payment of rents, the Biltmore management borrowed millions of dollars from Great American Life based on its ability to repay. The city has not seen those financial disclosures and has been negotiating using financial information limited by Biltmore’s management. If Biltmore management’s claims had any merit, it should have made rent payments and sued the city in court for maintenance expenses. Instead the management stopped paying rent and told the city to renegotiate its lease. That broke the lease and was dishonorable.