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Nine Developers Vie for Fort Worth, Texas, Luxury
 Convention Hotel Project; City Expected to Fund
 About One-Third of Cost
By Anna M. Tinsley, Fort Worth Star-Telegram, Texas
Knight Ridder/Tribune Business News

Sep. 3, 2003 - FORT WORTH, Texas--Nine developers from across the country are vying to build a luxury convention center hotel with at least 400 first-class rooms in downtown Fort Worth.

The developers have submitted proposals to the city less than two months after officials decided to test the waters once again for interest in building a headquarters hotel for the newly remodeled Fort Worth Convention Center.

It is in sharp contrast to reports in recent years that no company wanted to take on the project.

"It appears there is some significant interest in this project," said Kirk Slaughter, the city's public events director. "This shows companies believe this is a viable and needed project and that this would be successful."

Details about the latest proposals were not released Tuesday, but Hilton Hotels Corp. is listed as a partner in four proposals and the Omni Hotels of Irving submitted its own plan.

Well-known architect David M. Schwarz -- who designed the Bass Performance Hall, The Ballpark in Arlington and several projects in Fort Worth's Sundance Square -- is listed as a partner on another proposal. Local architectural and consulting firm Gideon Toal is listed as a partner on two proposals.

The city's hotel consultant, CH Johnson Consulting, now will review and evaluate the proposals, which could be presented to a council committee in the next 45 days.

The city last considered building a hotel with a private developer in 2001, but changed course the next year with plans to build a city-owned hotel financed with the sale of certificates of obligation. That proposal was tabled after a petition drive against it that would have forced the issue to be decided by voters.

Companies submitting the latest proposals and their partners are:

-- Austin Commercial in Dallas, with Gideon Toal, The Projects Group, Hilton Hotels Corp. and Hellmuth, Obata + Kassabaum.

-- FaulknerUSA in Austin, with M. Arthur Gensler Jr. and Associates, David M. Schwarz/Architectural Services and The Projects Group. This is one of the companies that submitted a proposal in 2001 and was not chosen.

-- Garfield Traub Development in Dallas with Renaissance Development Corp., Hilton Hotels Corp., Turner Construction Co., Thos. S. Byrne Construction, RTKL Associates and Carter & Burgess. This is one of the companies that submitted a proposal in 2001 and was not chosen.

-- John Q. Hammons Industries in Springfield, Mo., with Butler Rosenbury & Partners and CDI Contractors.

-- Hines in Dallas with Hilton Hotels, Hellmuth, Obata + Kassabaum and Centex Contruction Co.

-- Omni Hotels in Irving.

-- Phelps Program Management LLC in Denver with Gideon Toal.

-- Stormont Hospitality Group LLC in Atlanta, with Hilton Hotels Corp. and Cooper Carry. This is one of the companies that submitted a proposal in 2001 and was not chosen.

-- TVS in Atlanta, with Hahnfeld, Hoffer & Stanford and EDAW.

"We are very excited by the caliber of groups that responded," said Councilwoman Wendy Davis, who heads the council committee that will oversee the requests. "There is legitimate interest in building a convention center hotel downtown."

City officials in July asked companies to submit proposals that would include the size and location for the hotel, as well as how the company would finance the hotel construction and whether any city financial participation would be needed.

Officials say a headquarters hotel is needed because the city -- despite a $75 million renovation to the convention center -- is losing convention business to other cities.

"Meeting planners tell us we have a great airport, a great location, a downtown that's very active, attractions like the Stockyards and Cultural District and a brand new convention center," Slaughter said. "But they're having difficulties getting enough hotel rooms and they're looking for high-quality rooms nearby.

"We're already losing business to cities with convention center hotels," he said. "But Fort Worth is positioned to take advantage of the situation."

The council committee could recommend the top two to four proposals to the full council in November, Davis said.

"We are very excited, but obviously we need to remain objective until we see the specifics of the proposals," said Councilman John Stevenson, a committee member. "It seems to be a bit different than a few years ago when there were no takers.

"But the proof is in the pudding," he said. "I look forward now to seeing the details."

Officials with most of the developers could not be reached to comment Tuesday afternoon.

FaulknerUSA's communications director, Terri Dusek, declined to provide details of her company's proposal. She said the city's request stipulated that all information about the proposals come from the city or that the companies have written approval from the city before releasing information.

A Hilton official said the company would be willing to work with several developers.

"We have aligned ourselves with many of the developers," said Kathy Shepard, Hilton's vice president of corporate communications. "If any of them are chosen, we'd like to manage the hotel.

"We have good relationships with many of these companies," she said.

"But it's up to the city ultimately about who runs the hotel."

A blue ribbon committee studying the issue earlier this year recommended that the city's portion of any hotel project be funded by selling revenue bonds, which don't use taxpayer funds to repay debt. The bonds instead use hotel profits and a share of the hotel-motel tax.

Councilmen Chuck Silcox and Clyde Picht recommended that the blue ribbon committee also review the companies' latest proposals.

City officials have said market estimates show a public-private partnership would probably require the city to fund about one-third of the cost. The overall process of finding a developer and building a hotel could take about three years, officials said.

"This is a very exciting time," Slaughter said. "Now it's time to look at and evaluate the proposals."

-----To see more of the Fort Worth Star-Telegram, or to subscribe to the newspaper, go to http://www.dfw.com

(c) 2003, Fort Worth Star-Telegram, Texas. Distributed by Knight Ridder/Tribune Business News. HLT, JQH, CXP,

 
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