The historic Finlen Hotel in Butte, which opened in 1924, has sold. The transaction was made possible in part to a $412,000 loan from Butte’s Uptown taxing district, the Urban Revitalization Agency (URA). The loan has a fixed interest rate of 3 percent for 25 years.
The final agreed on sales price was not disclosed, but the hotel complex, which includes the Finlen Hotel, Finlen Motor Inn, 39 apartments, 12 commercial spaces, ballrooms, a heated parking garage, and the Cavalier Lounge, was advertised with a list price of $3.6 million.
The URA is a tax-increment financing (TIF) district, which generates funds from property tax dollars from new developments that are then re-invested in private buildings in the area through grants and loans. The URA is designed to promote the redevelopment and stimulation of investment within the central business district.
Butte also utilizes the TIF district-funding tool to redevelop and pay for public infrastructure needs for projects in the Montana Connections Business Development Park, a mega industrial park that is zoned Heavy Industrial and is mostly owned by the City-County of Butte-Silver Bow.
In addition, the Butte Local Development Corporation (BLDC) owns and operates its own Revolving Loan Fund, another financing option available for Butte businesses. When used for real estate, BLDC loans typically include the following terms:
- amounts not to exceed $250,000;
- 2 percent loan closing fee;
- at least 10 percent equity, preferred 20 percent equity;
- 6 percent interest; and,
- 10 - 20 year term.