Loan Snag May Delay Opening of Mission Inn

Faced with an 11th-hour financial snag, the developers of the restoration of Riverside’s historic Mission Inn--Carley Capital Group--may be forced to postpone plans to reopen the landmark hotel.

The Mission Inn’s doors--opened in 1876 and closed for a multimillion-dollar face lift in 1985--were scheduled to be reopened Dec. 22 under the auspices of Omni Hotels as the Omni Mission Inn, a 240-room establishment.

However, Carley halted restoration work Friday on the hotel, a lodging for Presidents and Hollywood luminaries of the past, because the developer and the primary financier could not agree on a funding plan to complete the project.

Carley’s representatives and executives at Chemical Bank, which has provided $28 million in loans for the project, were not available Monday.

Way Over Budget

However, the renovation costs--more than $20 million higher than the $18 million originally projected--have become a point of contention, according to Margueretta Gulati, development director for the city of Riverside. Gulati cited reports that the Madison, Wis.-based Carley is seeking another $3 million in financing.

“Apparently, the developer--Carley--had difficulty because like many restoration projects, this is way over budget,” Gulati said. “They (Carley) alerted the city that the project is at a standstill until they find additional funding.”

Carley on Monday informed Omni that it is trying to attract another lender or another developer to complete the project, according to W. Robert McIntosh, a vice president at the Hampton, N.H.-based Omni Hotels. McIntosh said Omni had planned to begin training 120 employees on Thursday for positions at the renovated inn. Those plans have been postponed, he said.

“We’re stopping our pre-opening phase because we don’t have a new projected opening date,” he said.