Sep. 23, 2003 - A group of local hoteliers is asking the federal government to block a deal that would bring a University of South Carolina-affiliated hotel to Columbia.

In a complaint filed with the General Accounting Office in Washington, the Department of Justice's National Advocacy Center is accused of violating federal law by agreeing to a development deal without a public bidding process.

The General Accounting Office is the investigative arm of the U.S. Congress. The GAO examines the use of public money and evaluates federal programs.

The complaint was made on behalf of the Greater Columbia Hotel and Motel Association, which is locked in a public battle to stop the $12.5 million hotel project.

The latest maneuver by the group questions a three-way agreement among the USC Development Foundation, the National Advocacy Center and Columbia-based IMIC Hotels, the developer of the 117-room hotel proposed for the corner of Pickens and Pendleton streets.

According to federal law, agencies such as the Department of Justice must have "full and open" competition for development contracts.

But the hotel project, which will serve prosecutors training at the Advocacy Center as well as USC guests, never went through a public bidding process, said Patricia Wittie, who represents the hotel association.

"(The agreement) is a very odd document, and I'm not sure of any authority the Department of Justice has to enter into an agreement like this," said Wittie, a Washington attorney who specializes in procurement law.

U.S. Rep. Joe Wilson, R-Lexington, also wrote a letter to the General Accounting Office questioning the legality of the agreement.

Officials with the National Advocacy Center could not be reached for comment Monday.

Procurement laws help ensure the government is getting the best deal for taxpayers while avoiding sweetheart deals for insiders.

USC spokesman Russ McKinney said that while the hotel project was not put out for a formal bid, several developers were asked to give proposals.

The school's Development Foundation is a private wing of the university and isn't bound by normal procurement procedures, McKinney said.

Rick Patel, president of the Greater Columbia Hotel and Motel Association, said that's unfair.

Patel, who has developed several Midlands hotels, said the National Advocacy Center should have pushed to make sure other developers were invited to bid.

"There's a way to do business and it has to be done fairly and honestly," he said.

According to the USC-National Advocacy Center agreement reached in July, the Department of Justice will guarantee at least 17,000 "room nights" a year at the new hotel.

Prosecutors now stay at other area hotels when they attend seminars at the National Advocacy Center.

In addition, the department is pledging about $2 million in federal funds to renovate the Kirkland Apartments and convert them into luxury suites that are part of the proposed hotel.

The USC Foundation-owned Kirkland Apartments -- a brick building that stands where USC wants to put the hotel -- have been at the epicenter of the controversial hotel plan.

Officials originally looked to bulldoze the aging building to construct the hotel, arguing it would cost too much to renovate the apartments.

The apartments were incorporated into the hotel plan after nearby residents lobbied to have the building designated a local historical landmark.

The neighboring Black House would serve as the hotel's lobby under the plan. A nearby cottage would be moved.

The National Advocacy Center has 30 days to file a response to the General Accounting Office complaint.

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(c) 2003, The State, Columbia, S.C. Distributed by Knight Ridder/Tribune Business News.