Browning pulls out of Evansville hotel redevelopment

EVANSVILLE—A new developer will be sought to take over a partially demolished downtown hotel that city officials had
hoped to have renovated and connected to the new 11,000-seat arena being built next door.

Indianapolis-based Browning Investments plans to turn the former Executive Inn back over to the city after being unable to
arrange financing for the project.

Dennis Dye, an executive vice president with Browning, said the company understood the importance local officials put on
having a hotel near the arena and the city's convention center.

"We would love to do this project," Dye said. "I also think not having a downtown hotel next to The Centre
is a big issue. If someone else can come in and say, 'I can do this better,' we aren't going to get in the way."

The city plans to seek proposals from developers for a hotel, either using the current building or perhaps building a new
hotel where a parking garage now stands across the street, arena project manager John Kish said.

Planners had hoped to have the renovated hotel finished by the time of the expected completion of the $127 million arena
late next year, but Kish said that timing wasn't the most important priority.

"We need the right hotel for the community, and we'll take the time necessary to do that," he said.

Vanderburgh County Council President Russell Lloyd Jr. said he worried about how the loss of the hotel could effect the county-owned
convention center, which had mostly eliminated what was typically a $500,000 annual loss.

"If Browning wasn't able to get the job done, I wish they would have relinquished this sooner," Lloyd said.

Browning took over the Executive Inn building last year, when plans were for part of the 470-room hotel to be demolished
to clear space for the arena and for the rest to be renovated into a 250-room facility.

Dye said the costs of putting in a new swimming pool and restaurant and other renovations to gain a national hotel brand
boosted the project's cost by about $10 million from the original plans.

Browning bought the old hotel and parking garage from the city for $9.4 million, with the city later paying it $11.9 million
to compensate for the demolished portion, repairs from the demolition and to help with the renovation.

Dye said Browning had spent money on plans and engineering work since taking on the project and was negotiating with the
city over those expenses.

The Evansville Redevelopment Commission could consider a take over proposal at its Aug. 17 meeting.

"We want something that is fair to us and fair to the city," Dye said. "We don't expect to make any money
on this because we haven't delivered anything."