Hollywood Dream Hotel, Hollywood California
Working in partnership with Hollywood International Regional Center, we are pleased to report the following construction update for the Hollywood Dream Hotel in Hollywood, California.
The City of Los Angeles has issued the following permits:
Demolition: 14019 10000 03019
Shoring: 14020 10000 00599
Grading: 14030 20000 01363
Building: 13010 10000 03647
At this time, the 2 story concrete parking structure has been demolished, existing utilities have been cut and capped. Shoring has started and is nearing completion and grading will follow. Rebar shop drawings have been submitted. Structural steel shop drawings are complete and submitted. Structural steel fabrication has started and is on schedule. MEP coordination is ongoing. Project is progressing on schedule.
Tao Group Partnership
The build out of the Tao Restaurant will create additional Food and Beverage revenue and cash flow from operations. The restaurant will provide additional job coverage to each of our investors because we anticipate more jobs being created due to the square footage and employee count necessary to operate the facility. We finalized our long-term Food and Beverage contract with the Tao Group, and believe this restaurant group will drive occupancy and room rates at the hotel. They are a world-class food and beverage operator and manage some of the highest grossing food and beverage facilities in the country. This is a very positive development for our future project.
The updated Budget Summary (as of April 30, 2014) is set forth in Table 1 below. The current budget for the hotel, club, and restaurant is $52,000,000 capitalized by $48,000,000 of EB-5 investment, $4,000,000 of developer equity and additional loan proceeds if needed of up to $6,000,000 from East West Bank. To date, we have spent $18,349,595 on the land acquisition, predevelopment, project administration, and construction in progress.
USCIS Processing Status
As you know, over the past year there have been long processing delays at USCIS for I-526 and project approvals. We want you to know that we are dedicated to securing USCIS approvals as quickly as possible. We are planning to actively engage our elected officials, both locally and in Washington D.C., to expedite the approval of the project exemplar with USCIS. We will be updating you on our progress in the near future. We will try to obtain verbal and written confirmation from USCIS that they are aware of our concerns and are committed to efficiently processing our exemplar and petitions. We anticipate receiving approvals in, and thank you for your continued patience throughout this process. Robert C. Devine, former Chief Counsel of USCIS, writes that the USCIS report shows an “average I-526 processing time of 13.2 months.”
About Hollywood International Regional Center
Hollywood International Regional Center sources capital for Hotel, Mixed-Use and Restaurant projects that revitalize cities, create jobs and shape communities. We are different than other EB-5 market participants. We are senior real estate professionals with decades of experience throughout all phases of the market cycles. Our relationships allow us to identity projects before others, and we employ our vast networks of contacts in the hospitality industry to coordinate action. We understand complex development, and our process includes working in partnership with landowners, municipal governments, contractors, architects and environmental consultants to make sure every project satisfies the needs and wants of the community and its residents. This is done in collaboration with best-in-class immigration attorneys, branded operating companies and EB-5 networks in China to ensure we are in strict compliance with USCIS regulations.
The budget summary is based on the approved Project Budget as of the date indicated as is subject to further update and revision by the Managers of the Project Company as provided for in the Project Company Operating Agreement.