Ramada Plaza to be Revamped At least seven developers have told city officials i
ID: 443711 • Letter: R
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Ramada Plaza to be Revamped
At least seven developers have told city officials in recent months that they are interested in building a luxury convention-center hotel downtown, despite reports last year that no company wanted to take on the project. Among those interested are four companies that submitted bids to Fort Worth in 2001 to develop a convention hotel - Portman Holdings and Stormont Hospitality, both of Atlanta; the Garfield Corp. of Dallas; and Faulkner USA of Austin. The news came Tuesday as the City Council voted 7-1 to ask developers to submit plans to build a hotel with at least 400 rooms. Councilman Clyde Picht voted against it, and Frank Moss was not present. Officials have indicated that the deal would probably involve a public-private partnership that could require the city to cover 30-34% of the project.
City officials say they are merely testing the waters for interest in blinding a first-class headquarters hotel geared to -draw lucrative conventions to the city and to the remodeled Fort Worth Convention Center. "This is a fact-finding mission for us, to go out and test the market," said Kirk Slaughter, the city's public events director. "There's been interest in this project for years. "It just makes sense at this point to explore what's out there." The council decision is in stark contrast to last year's plan to sell millions of dollars in certificates of obligation to fund a city-owned hotel. That plan stalled after residents submitted petitions pushing it, to a public vote. Starting July 15, city officials will ask companies interested in possibly building a convention-center hotel to submit detailed plans. The plans should include between 400 and 600 rooms, a hotel company to serve as the operator, a financing plan, project schedule' guaranteed maximum price and number of jobs the work would create.
At the time, city officials asked for proposals for 400-600 room hotels. The four companies' proposals envisioned luxury hotels with top, facilities, health club facilities and meeting space. They included:
Portman, which developed convention center hotels in Charlotte, NC, and Sacramento, Calif., proposed a hotel with meeting and ballroom space, 500 parking spots, a full- service restaurant and other amenities such as on-site dry service, health club facilities and room service.
Addison Based Harrell Hospitality Group that is proposing a full service restaurant and other amenities to include: indoor swimming pools and parking garage.
Stormont, which has developed hotels and is trying to build a convention-hotel project in Irving that is now on hold, proposed a hotel with at least 20 suites, A pub-style restaurant, ballrooms, indoor swimming pools and an adjacent parking garage with at s least 500 spaces.
Garfield, which has developed a convention center: hotel in Overland Park, Kan., "proposed a hotel with at least one restaurant and lounge, meeting space, a ballroom, health club, business center, gift shop and a
parking garage is with at least 500 spaces. The hotel would be connected to the convention center and to 111 the parking structure.
Faulkner USA, formerly the Landmark Organization, which built the new convention center hotel in Austin.
Town hall meeting Residents can learn about plans to build a convention-center hotel -and offer their opinions to city leaders at a town hall meeting this month. The meeting is scheduled for 5:30 p.m. July 22 at the Fort Worth Convention Center. The City Council is seeking bids from developers to forge a possible public-private partnership to build a convention hotel. "This is an opportunity for residents to learn about the project and for us to see how they would like it to move forward:' Public Events Director Kirk Slaughter said the proposed construction would include: upscale guest rooms: and suites, meeting space, a business center and health club facilities. The proposal also included a ballroom, meeting space and a car parking garage.
City officials unanimously voted Tuesday to work with a private developer to turn the aging Ramada Plaza into a luxury hotel with a new name, lauding the project as a “real boost” to Fort Worth’s convention and tourism market.
The City Council’s vote means that the Harrell Hospitality Group can expect to receive about $12.9 million in funded taxes over the next 15 years.
“Downtown Fort Worth is desperately short of quality hotel rooms for meetings and conventions.” Mayor Kenneth Barr said. “To have this hotel coming on line in the next year is a very positive step. I am sure we can expect great things from the Harrell Group.”
Paul Barham, chief executive of Harrell said his company will buy the 430 room hotel and spend about $34.5 million upgrading it. The hotel at 1701 Commerce Street across from the Fort Worth Convention Center has about 370 rentable rooms now.
“We’ve worked with the city for a long time to get this project this far.” Barham said after Tuesday’s vote. “We’re excited about taking it to the next step, and we are anxious to get going.”
When complete the property will have ornate balconies, and outdoor café, new furniture, carpeting and wall treatments and improved food and beverage facilities. It will also feature an upgraded swimming pool, and reception area.
The hotel will have a new name with national recognition, which will better serve enable the city to sell it to convention goers, and meeting planners, officials said. Options include Marriot, and Sheraton.
Ideally, renovations at the property will be complete by next summer, Barham said.
The public dollars for the Ramada project will come solely from the anticipated increase in property and hotel bed taxes generated by the renovated hotel. City officials said “No money from the city’s general fund will be given to the Harrell group.
In exchange for the incentives, Fort Worth officials are requiring that Barham award at least 20 percent of his contracts to minority and women owned businesses and 30 percent of his contracts to Fort Worth business.
The city is also requiring that 60 percent of the new employees at the hotel be Fort Worth residents and that 30 percent of the employees be from the central city. Barham must also maintain the property at a here star level, as determined by professional hotel rating associations.
If the Harrell group does not achieve the rating in any given year, the city will stop the refunds until the rating improves, said Tom Higgins, the city’s economic development director.
The Ramada project, although lauded by council members, does not appear to be abating the cities desire for a new convention center hotel, a controversial issue whose merit is currently being studied by a blue-ribbon committee.
The city had hoped to finance construction of a 600 room luxury property by issuing more that $160 million in debt.
Barr, who appointed the committee in December after more than 15,000 residents signed a petition forcing the issue to a public vote, made it clear that he still believes that the facility is still needed. “We desperately need a new hotel to support the convention center, and until we have that, we are going to lose business,” he said. “We are missing opportunities, every month,” Barr said. “This action today is a giant step in the right direction, but it doesn’t replace the need for that hotel.”
ACTIONS:
1. What is stated as the key reason for the city’s desire to build a new luxury hotel?
To provide support for the city convention center
To provide jobs to the local economy
To provide space to overcome other local hotels
To put the city into the hotel business
2.What is a possible reason any of the potential contractor’s might want to build the hotel?
Because they have available land to build on
Because they have available funding available
Because they want to expand their business
Because they already have another local hotel
3.Which of the following is a key risk to the contractor?
Not enough skilled local worker
Not enough local material suppliers
Not enough local project management staff
Not enough city funding has been obtained
4.Which of the following is a key risk to the city?
The city cannot communicate their vision to voters
The city has not obtained the land for the construction
The city does not know how to develop a financial plan
The city needs to do additional research
5.Which of the following is a city uncertainty in the desire to build the hotel?
Lack of available city funding and material suppliers
Lack of available city funding and purchased land
Lack of available local material suppliers and workers
Lack of available workers and purchased land
6.Which of the following is not a key risk to both the city and a potential contractor?
City voters may reject the bond vote
City building location has not been purchased
City requirements have been poorly defined
City needs to build a new convention center
7.How many rooms are requested in the proposal for the new hotel?
200-400
300-500
400-600
500-700
8.Which of the following companies remain in possible contention to be awarded the build contract?
Portman Group
Barham Group
Harrell Group
Barr Group
9.How many total companies have expressed interest in the project?
6 companies
7 companies
10companies
12 companies
10.Which one of the following is not one of the possible city solutions to determine the hotel location?
Let the chosen contractor recommend a site
Let the chosen contractor pick the site
Let the voters recommend the site
Use the existing Opry Hotel sits
11.In exchange for the incentives, Fort Worth officials are not requiring potential contractors to meet which of the following:
At least 20 percent of the sub-contracts to minority and women owned businesses
At least 30 percent of his sub-contracts to Fort Worth business
The contractor submit detailed plans by July 15
Have construction completed within 5 years
12.Which of the following will be used to fund the project by the City of Fort Worth?
Property and hotel bed taxes generated by the renovated hotel
Money from the city’s general fund
Funds from the sale of automobile licenses
Sale of alcohol in downtown Fort Worth
13.The city had originally hoped to finance construction of how large a hotel?
900room luxury hotel
800 room luxury hotel
700 room luxury hotel
600 room luxury hotel
14.Mayor Barr said not having the hotel means the City is missing what?
“business revenue”
“prestige”
“opportunities”
“residents’
15.How many signatures were on the public vote petition?
20,000
15,000
10,000
5,000
Explanation / Answer
1. To provide support for the city convention center
2. Because they want to expand their business
3. Not enough city funding has been obtained
4. The city cannot communicate their vision to voters
5. Lack of available workers and purchased land
6. City needs to build a new convention center
7. 400-600
8. Harrell Group
9. 7 companies
10. Use the existing Opry Hotel sits
11. At least 20 percent of the sub-contracts to minority and women owned businesses
12. Property and hotel bed taxes generated by the renovated hotel
13. 600 room luxury hotel
14. "opportunities”
15. 15,000
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