Hotel Contractor Wants Gov. Shumlin to Intervene

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Created on Friday, 06 November 2015 17:06

Written by Tyler Cadorette

BURKE – The general contractor for the Q Burke hotel project has asked Governor Peter Shumlin and Lt. Governor Phil Scott to intervene and force the state to approve delayed payments. PeakCM sent a letter to both offices yesterday requesting that Vermont's top state officials step in to resolve the situation. PeakCM President Jerry Davis says he will shut the project down at 4 p.m. today if issues with late payments are not fixed.

Davis claims that the Department of Financial Regulation, which oversees all financial transactions between Q Burke and PeakCM because of the project's EB-5 status, is holding invoices from this summer and a period of pre-construction work last year.

According to the letter, PeakCM is asking Shumlin and Scott "to intervene with ACCD [Agency of Commerce and Community Development] and DFR to induce them to perform their oversight in a fair, reasonable and timely manner."

The ACCD previously monitored the project until transferring responsibility to the DFR.

Officials at PeakCM believe a work stoppage will be detrimental to the entire EB-5 operation.

"PeakCM would like to avoid the consequences of a shutdown of the Project this Friday afternoon and the likely consequential damage to the State's entire EB-5 program," the letter reads.

PeakCM also sent a letter to the DFR and ACCD, which states (in part), "This letter notifies you that if the State does not take the actions listed at the end of this letter by 4PM on Friday, November 6, 2015, PeakCM will suspend all further work on the project."

According to the same document, PeakCM sent similar letters to the DFR and ACCD requesting approval of payments on October 19, 20, and 23.

As of Thursday afternoon, Davis said he had not heard from any of the offices or departments that received the letters.

News7 reached out to Bill Stenger, CEO of Jay Peak and a Q Burke developer, and the Q Burke Resort marketing team for comment on the situation, but has not heard back from either party.

However, an email sent yesterday by the Q Burke Hotel and Conference Center featured the headline '5 Days Left to Save up to 30% on your Winter Vacation.'

Stenger said on Wednesday that a shutdown would delay the hotel's grand opening, which is currently slated for December 11.

To read the full letters, click here.