Mark Block Quoted in Fulton County Daily Report
"Deal Watch: Market Woes Don't Hinder Hotel Deal"

Mark Block was quoted in the September 25, 2008 Fulton County Daily Report article, "Deal Watch: Market Woes Don't Hinder Hotel Deal." The article discussed the $134 million hotel development near the Georgia International Convention Center and Hartsfield-Jackson Atlanta International Airport. The financing for the project will come from a group of debt lenders, led by U.S. Bancorp, which is represented by Seyfarth Shaw. In the article, Mark explains that despite the national economic conditions, U.S. Bancorp never considered pulling out of the deal: "U.S. Bancorp is a very conservative lender, and I think that, between the project developers and the other people backing it, they always felt very comfortable.”

One of the development's financing elements will be proceeds from bonds backed by payments in lieu of taxes, also known as PILOT bonds. According to Mark, the lawyers had to review the details of how PILOT bonds work with all of the lenders and other parties involved. Mark commented that “[PILOT bonds] are very unusual collateral for a real estate deal. It's very atypical for what you think of as a real estate construction loan.” He concluded that financing for a real estate project is usually a mortgage based on fees, or bonds that are based on a ground lease. David Williams and Alison Bruley worked with Mark as counsel to U.S. Bancorp.