- 6 -
expectation that additional future funding would be secured from
the Bank of Development, a Brazilian governmental agency then
helping private investors develop various tourism-industry-
related projects in Salvador.
In mid-1988, the 12-cabana complex was temporarily closed
for business due to the disruption caused by the expansion
project. The complex was again reopened for business by 1989.
Because of a downturn in the Brazilian economy,1 petitioner
never received the Brazilian governmental funding he had expected
for the hotel expansion. Although he then attempted to obtain
financing from other sources, including certain sources in the
United States, his efforts were unsuccessful. In 1990,
petitioner was no longer able personally to finance construction
of the hotel expansion or the operation of the 12-cabana complex.
Construction on the hotel expansion ceased sometime in 1990.
When construction was halted, only the skeleton of one of the
planned wings (the concrete and steel "Building A" located east
of the 12-cabana complex) had been erected. In 1990, the 12-
cabana complex was also closed for business.
From 1986 through 1990, petitioner reported gross receipts,
1When the March 1988 study on the hotel expansion was
issued, petitioner had hoped to finance approximately 51 percent
of the project’s total cost by obtaining a 6-year loan from the
Bank of Development. He originally had obtained the study, in
part, to help him in procuring such Brazilian governmental
funding.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011