City Announces Details of Response to Hotel Request for Proposals
Downtown hotel is key component of Harrison Square development
Fort Wayne, Ind. - The City of Fort Wayne today released more details on the proposal received for the downtown hotel component of the Harrison Square mixed-use development.
Acquest Realty Advisors, Inc. along with White Lodging Services Corporation has submitted a response, which calls for a full-service Marriott-branded hotel.
RFP highlights:
* $47 million private sector development
* 11-story, 250 room hotel tower
* 4,000 square foot junior ballroom
* Two 1,000 square foot meeting rooms
* 4,200 square foot signature restaurant and bar for hotel patrons and residents
* 1,200 square foot specialty coffee shop
* Outdoor pool, year-round spa and fitness center
* Developer supports the overall Harrison Square development and acknowledges the hotel, Grand Wayne Center and mixed-use development along with a baseball stadium would serve as a visitor and local destination place
The City of Fort Wayne now will enter into a negotiation period over the next four to six weeks to work on an agreement with the developer. The City expects to have an agreement in place by the end of the first quarter.
Acquest and White Lodging have hotels in Indianapolis, Chicago, Houston, Louisville, Ky., Austin, Texas, and Trenton, N.J. to name a few. Indiana-based White Lodging and Acquest each bring several years of professional, industry-specific experience to the project.
"We are encouraged to be moving forward as we work to create new catalyst opportunities in downtown Fort Wayne," said Mayor Graham Richard. "This is a great opportunity for our City and region to be a leader in economic development. A centerpiece gathering place that attracts jobs, businesses and residents will leverage existing assets and enhance community vitality."
The hotel would be a priority element in the multifaceted Harrison Square development. Project plans include residential condominiums, street level retail, a new minor league baseball stadium, and a parking garage in the initial $125 million phase.
Taxes generated from the hotel would assist the City in financing the public portion of the Harrison Square development. Harrison Square's first stage calls for a nearly 50/50 split between private and public financing.
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Tuesday, February 20, 2007
News Release: City Announces Details of Response to Hotel Request for Proposals
Posted by scott spaulding at 2/20/2007 09:35:00 AM
Labels: Graham Richard, Greg Leatherman, Harrison Square, Mark Becker, New hotel, Steve Brody
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1 comments:
The Redevelopment Commission of the City of Fort Wayne issued a "Request for Proposal" for the "Convention Center Hotel Development" on December 21st, 2006.
The formal "RFP" confirms some of the things that I have suspected for a long time.
Last Thursday I had a chance to talk to the Mayor in a public forum and ask him about the project. We had a friendly exchange and he said that he did not know the answers to my specific questions; he said that the project was still in the planning stages. The Mayor promised me that I could meet with The City of Fort Wayne so that I can review the financial projections for the project when they are completed and before they are voted on by City Council. I am looking forward to that meeting!
According to the original RFP:
The RFP was issued on Dec 21st, 2007 (Cover page)
The RFP requires the hotel to have 300+ rooms (Page four, section 2.1)
The RFP states that “The hotel program must include a minimum of 300 rooms to be considered responsive” (page 4, section 2.4)
The RFP requires proposals to be submitted to the City by 5 PM on Feb 13th, 2007 (Page 12, section 13.3)
The RFP stipulates that “a refundable deposit in escrow of $300,000” will be established by the Respondent (page 5, section 3.4)
The RFP was amended with Addendum Number 2 on January 17th, 2007. The amendment says that “The City of Fort Wayne is willing to negotiate the number of rooms for the hotel and will consider lowering the number of rooms that are now set at 300.”
One “Respondent” requested that the deposit be lowered; Fort Wayne immediately waived the deposit requirement, page 3 of the written questions submitted by the Respondents.
Other interesting items:
1. “A portion of the Parking Garage revenues can be directed to support hotel operations,” page 4, section 1.3.
2. “Parking will be provided in the 900 space garage,” page 4, section 2.3.
3. “The City will pursue negotiations with the top ranked Respondent with the goal of a Development Agreement by April 1st, 2007,” page 11, section 10.3.
I have several questions about this RFP:
1. From the first day this project was “unveiled” every official press release and communication from The City of Fort Wayne has stated that “for the project to be economically viable the hotel must have 300 rooms or more.” Why was this requirement removed from the RFP on January 17th, 2007?
2. Requiring a minimal deposit of $300,000 for a project of this magnitude seems very low to me. Why was this requirement waived?
3. This is a large project that requires a large amount of planning. Why does Fort Wayne want to have a Development Agreement in place by April 1st, 2007?
I have a lot more questions about this project and I am greatly looking forward to
meeting with The City of Fort Wayne and analyzing the financial projections.
I applaud the Mayor for allowing an independent citizen to review this project
BEFORE it is voted on by our City Council!
Mike Sylvester
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