DENVER (KDVR) — Colorado's famous Stanley Hotel will experience some big changes after the Colorado Educational and Cultural Facilities Authority approved documents on Wednesday to issue bonds to fund the purchase of the property.
Last year, CECFA formed a subsidiary, SPACE, LLC., and worked with multiple entities to secure funding for the transaction. It worked with the Colorado Office of Economic Development and International Trade, which will use sales tax revenue from the Regional Tourism Act program to help pay the bonds.
CECFA also worked with the Colorado Film Commission, current owner and seller John Cullen, Blumhouse Productions, Sage Hospitality, investment bank RBC, attorneys from Sherman & Howard, Kutak Rock, Butler Snow, Spencer Fane, Saunders Construction, RevPar International and 4Site Advisors to invest in the bonds and help preserve the legacy of the hotel that holds such a legendary reputation.
The bonds will be managed by SPACE, LLC. who will assume ownership of the property when the bonds are retired, according to a release from CECFA.
It is expected that $425 million issued in bonds will be used to pay an existing debt for the Stanley Hotel, purchase the property and expand and renovate buildings while adding several new areas.
Not ready to step away yet, the current owner Cullen, alongside RevPar International and Sage Hospitality, will be brought in by SPACE, LLC. to manage the property.
One guiding principle Cullen used when making the sale to the correct entity was preserving the legacy of the hotel and making sure its resources were allocated in a way that was beneficial to that cause.
CECFA, being an arts and education organization, fits the mold.
“A significant portion of revenue from this project will go towards public benefit,” said CECFA Board Chair Morris Price.
CECFA reported that nearly $18 million of the bonds will be used to support Colorado's educational and cultural charities. The Stanley Art and Culture Fund will also receive $500,000 annually during the bonds that will be used by Cullen and SPACE, LLC. to provide for public middle school arts and education across the state.
The Stanley Hotel will always have a tethering connection to "The Shining," the novel written by Stephen King and adapted into a film by Stanley Kubrick.
In honor of the relationship between the two, the Stanley Film Center is being created as a shrine to the tale. The building will cover nearly 70,000 square feet and is expected to feature a 1200-person concert hall.
Due to its status as an icon in the world of horror, the Stanley Film Center will also be the host of an exhibit created by the horror production company, Blumhouse. The space will be dedicated to the history of horror films and will feature the ax used by Jack Nicholson in the famous "Here's Johnny!" scene in "The Shining."
CECFA is expecting the Stanley Hotel and its new additions to generate $50 million annually which will be repurposed into their mission on education of the arts.
The hotel will also be undergoing renovations to its main structure which will include updates on current rooms, a restaurant and the addition of more guest rooms.
The hotel is going to experience some drastic changes and all the organizations involved will have their hands full with enhancing and preserving a staple in Colorado and pop culture. Those who are working on the site should be mindful to stay away from room 237.
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