Red Lion Inns Makes $9-Million Pledge to Downtown Hotel Plan

"Red Lion officials said they are eager to partly own as well as to manage the proposed $36-million hotel, to be built on Central Avenue just north of the Ventura Freeway. The action was unusual because hotels generally are financed by independent investors, not by the operating chain."

"Susan Shick, Glendale's deputy redevelopment director, said the financial agreements call for Red Lion Acquisition Co. of Vancouver, Wash., to invest $9 million in the project, with the remaining $27 million in construction cost to be obtained through a conventional bank loan. The city also expects to spend $9 million to $10 million for land and a parking facility."

"Dennis Schuldheisz, vice president of development for Red Lion, said, 'Glendale is a city on the move, and the redevelopment agency and the city government are aggressive and progressive. We are very excited about the opportunity to participate.'"

Red Lion Inns committed $9 million toward construction of a major hotel and convention facility in downtown Glendale, an unusual move since hotel chains typically do not provide financing. The Glendale Redevelopment Agency selected Red Lion as the operator in January after evaluating competing chains. The $36 million project, located on Central Avenue north of the Ventura Freeway, will be financed through Red Lion's $9 million investment combined with a $27 million conventional bank loan. The city will invest $9-10 million for land and parking facilities and will receive a portion of future hotel profits. Developer Stanley Cohen and Heltzer Enterprises will construct the facility. Negotiations are expected to conclude within six months.

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