Edgewater Hotel developers applied Tuesday to use low-cost federal funds to finance the construction and renovation of the hotel.
Developer Robert Dunn and the Edgewater Hotel Company, LLC have submitted an application with the Public Finance Authority to use $66.15 million in Midwest Disaster Area bonds, according to a letter from City Attorney Michael May.
These disaster funds are available to individuals and businesses in areas throughout Wisconsin, including Dane County, that are considered “Midwest disaster areas,” because of severe storms, tornadoes or flooding that occurred in 2008.
The bond program does not involve city funds because it is financed through the PFA, which is a governmental organization, according to May.
“The PFA is unrelated to the city and the city has no powers, obligations or responsibilities as regards the PFA,” May said in the letter.
The Edgewater developers will break ground on the $98 million reconstruction project the weekend of Nov. 17.
