It's been three months since the Hotel Ketchum proposal was approved by the Ketchum City Council. But developer Jack Bariteau expressed no disappointment that a construction start date hasn't been identified.
"It's a new world out there," Bariteau said. "It's not just Ketchum and Sun Valley being singled out. This is an extraordinary time and the debt is simply not there for any projects."
In October, the City Council granted Bariteau two years to begin construction of his four-story luxury hotel on the southeast corner of Main and River streets, instead of the one year normally permitted by city ordinance.
"I have two years and will spend every hour of that pursuing it," Bariteau said. "Right now, it means aggressively talking to (potential lenders and investors) and keeping the project in front of them and on their minds."
Bariteau previously said construction of the 73-room hotel would cost about $65 million, with $30 million coming from private equity. Bariteau said it used to be possible to get a loan to fund 75 percent of this kind of project, but that figure has shrunk considerably to 40 to 50 percent.
Bariteau expressed optimism about an eventual economic recovery and said his commitment to and vision for the project has not changed.
"And it's much better to be waiting than actually sitting on something partially built," he said.
Bariteau, whose development history in Ketchum includes the Colonnade and Christiania buildings, said waiting is made easier by the fact that he has tenants on the property, the shopping area known as Trail Creek Village.
However, Bariteau said he was sad to see the recent closure of one of the village's mainstays, Chandler's Restaurant. Owner Rex Chandler, who owns Chandler's Steakhouse in Boise, also sold his other Trail Creek Village restaurant, Baci, to fellow Ketchum restaurateur Steve Riccabona.
As well, Paula Proctor moved her business, Paula's Dress Shop, from Trail Creek Village to Hailey.
Bariteau said he is looking for tenants to fill the vacant spaces, but that the economy is impacting everyone.
"People have plenty of time and effort, but not much else," he said.
Ketchum developer Jack Bariteau said he’s optimistic about a recovery of the economic recession that has dried up the debt markets needed to construct his 73-room hotel in downtown Ketchum Photo by Mountain Express
