Fwd: Response,
David
Now that you have received funding for 3.5m - NET FUNDING SEE BELOW,
Life Hotel, 19 West 31st Street, New York
CREDS Loan as Preferred Equity - Closing Statement
CREDS Gross Loan Proceeds: $3,500,000.00
less
a. CREDS Structuring Fee (2.0%) $-70,000.00
b. Legal Fees - MMPS $-20,000.00
c. Tax Advice - KPMG/Marks Paneth $-6,000.00
d. CREDS out of pocket expenses $-5,000.00
e. Delaware LLC Creation & Admin Expenses (2 years) $-6,000.00
CREDS Net Loan Proceeds $3,393,000.00
add Good Faith Deposit $15,000.00
CREDS Net Net Loan Proceeds $3,408,000.00
Distribution of Net Net Loan Proceeds
Premier Corporate Services $420.00
Premier Corporate Services $330.00
First American UCC Insurance Services $2,882.30
Katsky Korins $98,000.00
Arnold & Porter $30,000.00
Life Hotel One LLC (return of Good Faith Deposit) $15,000.00
Muchnick, Golieb & Golieb, P.C. $25,000.00
Life Hotel Pref LLC $3,236,367.70
Total
$3,408,000.00
Excess Proceeds $3,236,367.70
We need to organize how we can complete the hotel and restaurant open items
I can come over to your office on Sunday to review the below I NEED TO CATCH UP TODAY AND PREPARE FOR THE BANK REVIEW ON MONDAY SO EVERYONE ELSE CAN GET PAID
DEAR STEVE:
MOST IMPORTANT TWO FACTS ARE:
1.WE NEED TO CLOSE OUT CONSTRUCTION AND GET A TCO SO THAT BOTH OF US ARE OFF ANY CONSTUCTION GUARANTEE FOR COMPLETION
- MAKE THE FUNDS AVAILABLE FOR THE RESTAURANT WORK AS THERE IS NO OTHER SOURCE OF FUNDING AND EVERY DOLLAR IS ACCOUNTED FOR IN DETAIL
PLEASE SEE MY RESPONSE IN CAPS
The below is not accurate or acceptable
You have had the restaurant detailed budget for months - many revisions - you have dealt with ALAN on revisions many times via email — seems like another of your stall tactics that I have seen you do with the contractors
I think it best I respond to you through lawyers as it seems I will not be able to proceed for lack of funding • or completion of restaurant spaces
seems best -we now need to part ways - do not count on me being on site
Let's review how you think Best to tell restaurant employees - especially after Friday when you insured they would be fully funded - you told them to ramp up get ready to open in under 3 weeks I find you where totally Disingenuous
Let's hear your separation plan on Monday and we can tell them on Tuesday as Monday is a huge PR event for the hotel and restaurant
Then let's review • now you have just paid the door past monies due • they need to review how we will announce - that I will not be opening a restaurant- maybe they will have a good approach - first thing - Tuesday we should set up a door cc before it gets out that I have laid everyone off
I'll drop off the 3 contractor checks you wanted me to distribute later today I'll ask them to be put in the safe Just a FYI You will need to organize many trades - your going to be needed on site and not just for
your usual one hour stay
Tara will be on site at 11am on Monday you need to sit with her. Many items to review - Many trades to coordinate and as you'll see some trades really need handholding
I am trying to find in the loan docs from DB if it says the restaurant must be open - even if it does I'm sure it does not say - you must serve alcohol - you can hire anyone to make a simple menu - you need to review the wording for the hotel bar though - that could be a issue although you can get a beer and wine licensee only - rather quickly
The above is so your not stranded on Monday as we where to go full speed - Best now we stop communicating and deal through the lawyers
Sent from my iPad
Not sure what is not accurate or burdensome enough for you not to continue with the
restaurant
All that is being asked for is a detail of who is being paid
( similar to the closing statement provided in my email)
This is exactly what we have to do for construction costs and professionals for every funding to
date
In fact that is what we have to do for every dollar spent on this project
Everyone has seen the rough budget you and Alan have provided ,
Now we just need to fill in the names of the vendors and professionals , that is what is required
Money was funded and is ready to be transmitted to the restaurant , just need for the blanks to
be filled in
I am sure it is not a long list and knowing Alan he has most of already
..............................
DAVID MITCHELL
..............................
Mitchell Holdings LLC
801 Madison Avenue
New York NY 10065
USA
David. Let's just move on. Best for all
Sent from my iPad
I think you misunderstood what is being asked for and why this is a requirement , not as you call it a stall
Money is set aside and ready to be released pending a fairly simple outline that gives detail to your budget what is required
No one is arguing with you, about the uses just checking the boxes
..............................
DAVID MITCHELL
..............................
Mitchell Holdings LLC
801 Madison Avenue
New York NY 10065
USA
He responded and I further did
DAVID MITCHELL
Mitchell Holdings LLC
801 Madison Avenue
New York NY 1O065
USA