Developer withdraws from city's hotel plan - Tuscaloosa News
TUSCALOOSA | One of three hotel developers vying for a piece of downtown withdrew from the city's bidding race.
But that doesn't mean National Ventures Group LLC is pulling out of Tuscaloosa altogether. Quite the opposite.
Robert L. Schwartz, president of the Atlanta-based hotel development company said Friday his company is negotiating to acquire land adjacent to
Bryant-Denny Stadium.
The deal is close, Schwartz said, but not far enough along to announce the full details of the land purchase. That is expected to occur next week.
Schwartz was clear on his intent for the land: He wants to erect a $32 million high-end hotel with 150 rooms and suites — the same project that he and National Ventures pitched for the CityFest lot before recently backing out.
"It's more important for our people to be able to walk into the stadium instead of being able to walk in to the restaurants and bars," Schwartz said. "So we said goodbye (to the city) and we wish them the very best."
City Attorney Tim Nunnally said National Ventures' withdrawal from the city's bid process was amicable.
"We had a figurative handshake on the phone, everyone left in good standing ... and the city very much appreciates their participation in the process," Nunnally said.
National Ventures, Ivory Development Group and Wilson Hotel Management Co., were the only three companies to participate last month in the city's request for proposals in a bid to purchase a 2.02-acre city-owned site near the intersection of Greensboro Avenue and University Boulevard known informally as the CityFest lot.
With National Ventures' withdrawal, that leaves Ivory Development Group and Wilson Hotel Management as the remaining bidders. They are scheduled to meet with the City Council on Sept. 27 to formally pitch their ideas for the property.
Bill Snowden, director of the city's Office of Economic Development, said Ivory and Wilson have agreed to at least meet the $1.69 million appraised value for the land. The city cannot sell the tract for less than the appraised price because it was purchased with federal Community Development Block Grant (CDBG) funds.
A larger, 5-acre tract that included both the CityFest and barbecue lot was appraised for $4.3 million in 2008.
"However we structure (the purchase), either with a long-term note or if they pay cash, it goes into the CDBG fund that the city can use for revolving loans for local businesses or any other eligible purpose," Snowden said, noting the sale could be a timely benefit for businesses damaged or destroyed in the April 27 tornado.
"It's a win-win situation from the city's standpoint," he said.
The annual lure of football fans is the key to National Ventures' strategy, Schwartz said.
National Ventures intends to pre-sell 100 suites for eight three-day weekends a year, each weekend centered around a Crimson Tide home football game, for the next 10 years.
The cost for the guaranteed lodging is $100,000, but if a purchaser decides not to use the rooms one weekend, the hotel would rent them and pay the purchaser 75 percent of what the hotel earns, Schwartz said.
"And I suggest that the suite we're talking about will go for double of what they're paying at $400 a night," he said.
For the CityFest lot, Ivory has proposed a luxury hotel that could reach a total cost of $20 million and ensures it would comply with CDBG requirements, such as hiring 51 percent of its staff from low- to moderate-income families.
The Wilson group initially proposed building an Embassy Suites hotel of undisclosed value, but said in recent meetings with the City Council that the brand is open to negotiation.
Should city leaders elect to pursue a deal with either company, Snowden believes the development of an upscale hotel on the lot would only benefit downtown Tuscaloosa.
"All it's going to do is increase and add to more development downtown ...," Snowden said. "For the future of the city, it sends a message to other entities and other restaurant chains. They see a growing, vibrant downtown and they want to come here.
"I think it's well overdue."
Reach Jason Morton at jason.morton@tuscaloosanews.com or 205-722-0200.
05 Sep, 2011--
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