March 25–The Oregon Senate moved to clear the way for a proposed hotel at the Oregon Convention Center, financed in part by the Metro regional government.

The Senate passed a bill Wednesday confirming Metro’s authority to build or buy tourism venues without a seeking voter approval. It would void an argument competing hoteliers have used to challenge the project in court.

Senate Bill 927, which passed 20-10, now heads to the House, where it’s scheduled for a first reading Thursday.

Metro has proposed to finance the $212 million Hyatt Regency hotel with $60 million in revenue bonds backed by hotel lodging taxes. The hotel also would be subsidized with $10 million in state lottery funds and $8 million in other public loans and grants.

Metro says the hotel would help attract five to 10 new mid-sized conventions each year, bringing with them conventioneers who would stay 70,000 nights in local hotels and spend $600 million each year.

Opponents — namely a coalition of competing hoteliers led by Provenance Hotels of Portland — say those projections are overly optimistic and that the hotel could hurt other local hotels by undercutting room rates.

The hotel project is proceeding through the permitting process even as it’s tied up in lawsuits.

The opponents launched a two-pronged attack on project, petitioning in Multnomah County for a referendum and challenging in Clackamas County Court Metro’s authority to build a hotel.

Judges in both cases sided with Metro, and the cases are on appeal. The Senate bill would effectively settle the issue of Metro’s authority, but opponents could still push for a referendum.

— Elliot Njus

[email protected]

503-294-5034

@enjus