It’s wait-and-see on Inn of Gallup

Independent file photo

By Kathy Helms
Diné Bureau

WINDOW ROCK — The Navajo Nation Council this week asked for an independent appraisal of the Inn of Gallup before acting on legislation to purchase the property, but that may be impossible given Council’s summer session deadline.

The proposal was tabled pending an evaluation, according to Controller Mark Grant. The question is whether the appraisal can be based on information already gathered in prior appraisals, or whether the appraiser needs to start from scratch.

“If a full-scale appraisal needs to be done, it’s going to take longer than two weeks,” LoRenzo Bates, Budget and Finance Committee chairman, said.

Bates said the Investment Committee has an appraiser on retainer.

“He could possibly get it done in two weeks provided he uses what’s already been done,” Bates said. “Now, as to how accurate that would be in terms of an accurate and fair appraisal, I don’t know.”

He also told the B&F Committee this week that it wasn’t stipulated who would pay for the appraisal but assumed it would be paid through the Land Acquisition Trust Fund.

If approved, the Nation would purchase the 212-room hotel with $6.6 million from the trust fund, then lease the property to Navajo Nation Hospitality Enterprise for $518,000 a year rent, which would go back to the trust fund.

During the first two years the enterprise would spend $2.6 million from the trust fund on renovations which would bring the appraised value to more than $9.2 million and would allow the enterprise to obtain a Choice Hotel franchise.

The former Holiday Inn located on the west side of Gallup was first offered to the Nation in 2006 for $10 million.

However, an appraisal conducted that year estimated the fair market value to be $6 million.

Resources Committee Chairman George Arthur, sponsor of the legislation, told B&F that he had spoken with Council Speaker Lawrence Morgan and “we agreed that since it was a Council directive, the cost would be covered by Council.

Arthur said he was concerned because when Council gives directives, it’s not specific, “probably because we don’t really fully understand what it entails. There are different forms of appraisals, but the appraisals we have used in previous occasions are very specific and geared toward real estate.”

He said he would prefer the Investment Committee appraiser go out and do his own independent appraisal rather than look at what’s already in place because he thought that was what Council preferred.

“But they also said by summer session. That also indicates to me they don’t know the impact of that directive.”

Bates said that did bring into question whether the appraiser would be able to meet the deadline. Also, if they go with the appraisals that already have been done, would Council accept that?

“In the event that Council is not satisfied with the accelerated review, where does that put the position of the seller?” he asked.

Arthur said the seller, Hans Pircher, indicated that Monday when Council acted on the legislation was the cutoff date. “He doesn’t know how long he can be on standby.”

B&F requested Grant send a letter to Pircher asking his position on the matter and whether he’s willing to go forward until summer session.

“If Council fails to accept this accelerated review and wants a full-blown review, who knows how long that will take. But we need to know for sure before we start spending the money on it,” Bates said.

“If it doesn’t happen by summer session, I’m sure this whole discussion is just water under the bridge,” Arthur said.