An Austin, Texas, developer publicly threw its hat into the convention-center hotel ring this morning with a presentation to the Jackson Development Authority. TCI, a Dallas-based company that currently owns the land across the street from the Convention Center, also gave a presentation as expected.
After the presentations, JRA went into executive session, then came out and announced about 11:30 a.m. that it was rejecting both proposals.
Journeyman Austin has built convention center hotels in the past. The company offered three different sites and options in their proposal. One includes a City Centre tower that is owned by Parkway Properties and is unoccupied.
“This is our mainstay business, delivering convention center hotels,” said Robert Gallup, vice president of Journeyman Austin. He mentioned some examples of completed projects: the Austin Hilton, Austin Hilton Downtown, Denver Hyatt, San Antonio Hyatt and hotels in Omaha, Neb., and Vancouver, Wash.
Both presenters want the benefit of public Gulf Opportunity Zone funds, which expire at the end of the year. Gallup said the funding for this project should involve private investment. They’re not asking for 100 percent financing.
“That’s the level we think the project will support,” he said.
Don Hewitt represented Advance Technology Building Solutions, a Jackson-based firm working with Journeyman. His company is reportedly renovating the old Regions building downtown.
Hewitt said Journeyman’s hotel project would include as much local participation as possible. He stressed that Journeyman Austin has criteria for hiring minority subcontractors.
One of the board members asked if it was necessary to have GO Zone bonds.
“It is not a deal killer,” Gallup responded. TCI, on the other hand, says it must get the GO Zone bonds to proceed.
Hewitt pointed out that there are other bonds that would be available from state agencies.
Alfred Crozier represented TCI at the meeting, but wasn’t prepared for a formal presentation. In his impromptu address, he said he had given a presentation already and didn’t have all his consultants there. He stressed that TCI has been working on the project for years, before the 2008 economic dip. They have assembled parcels equaling four city blocks across from the convention center.
“We’ve gone through the gambit to massage this to a level we find comfortable,” Crozier told the board.
He said that TCI is in final negotiations with Sheraton to be the “flag” hotel. “We are prepared to close by the end of the year to utilize GO Zone,” Crozier said.
JRA board member Beneta Burt asked Crozier: “If you don’t get the GO Zone (funds), will you move forward?”
Crozier talked around her question, at which point she interrupted: “That would be a no.”
The board went into executive session to discuss the two proposals, then reopened the meeting to vote on a motion to reject both proposals.
The Rev. Ronnie Crudup, who is the JRA chairman, said the board felt that with the short time frame, potential legal issues and other complexities, this was not the right time to pick a developer. JRA will reissue another requests for proposals in the first quarter of 2012, he said.
Watch http://www.jfp.ms/hotel for more details today on JRA developments.
Previous Comments
So the city has to buy back the land in front of the convention center for about 15 million, find a new developer who won’t have the advantages of the Go Zone bonds. As a proponent of downtown development I’m pissed, Now the city of Jackson which is already behind in the region in the convention market has to wait even longer to build a convention hotel to help the convention center. I know it will be hard to go the bond issue route in getting a convention center hotel. I believe the city needs to go for a bond issue for 30 million and let the other half be privately funded. This has to be a public private venture. Dangit Frank E Melton is still causing the city of Jackson problems. Frank has literally set the city of Jackson back TEN YEARS, this is why you don’t hire a “crime fighter” to be the mayor of a city because when he fails to make sound decisions on issues like this we suffer as a city and it trickles down to crime, because this hotel will create JOBS, construction and permanent JOBS. Dang Dang Dang long live Frank E Melton.
#165608 | Author: NewJackson | Date: Dec 19 2011
Yes, it is Mr. Melton’s legacy — and a lesson on why screaming about crime is not a qualification for public office. We can’t lay it all at the feet of Melton; those who knew he was a problem and didn’t report it, or went along with his kind of crazy because they thought he would sign off on whatever they wanted are also to blame. Blame, of course, doesn’t help; it’s the lesson within it that city voters need to take to heart. In fact, we wrote about just that in our editorial this week: Can we learn from the hotel morass?
#165609 | Author: DonnaLadd | Date: Dec 19 2011
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