April 30–Gwinnett leaders agreed Tuesday to lease county-owned land for the construction of a “headquarters” hotel near the convention center.
“We’re thrilled, with seven exclamation points,” said Gwinnett Chairman Charlotte Nash after the vote. “A lot of people put in a lot of effort getting to this point.”
The Marriott hotel, which has been in the works for several years, will have between 290 and 300 rooms. It will include conference rooms, a ballroom and a business center, and local leaders think its completion will be an economic boon. The hotel is expected to help entice more groups and events to the Gwinnett Center.
The hotel is the “cornerstone of the master plan we’ve been working toward for 12 years,” said Preston Williams, CEO of the Gwinnett Convention and Visitors Bureau.
But it was not without its issues.
The process began in 2011, when the Convention and Visitors Bureau first requested proposals from companies interested in building on the property. In February 2012, commissioner John Heard, an architect, disclosed that he had served as a paid consultant for one of the bidders, Nilhan Hospitality LLC.
He recused himself from discussions related to the deal and resigned his seat on the board of the Gwinnett Convention and Visitors Bureau. That board later recommended commissioners move forward with a proposal that partnered Nilhan and Concord Sugarloaf LLC.
Tuesday, Heard abstained from the vote, and said it had been frustrating to sit on the sidelines as the process to approve the hotel continued over the past several years.
Concord Sugarloaf now has the primary role in the development. Nilhan and developer Chittranjan “Chuck” Thakkar had several lawsuits filed against them related to nonpayment of debts, and the company filed for bankruptcy protection earlier this month.
Nash said Nilhan’s filing would not have any effect on the deal.
Grant Sabroff, the senior vice president of business development for Concord Sugarloaf, said it had been “a little bit of a journey” to get to the agreement. Negotiations for the project took well over a year.
To finally reach the leasing stage was very exciting, Commissioner Tommy Hunter said.
While there have been “tug of wars” and “beatings over the head,” he said, “”something that’s worth having, that’s what it takes to get there.”
The commissioners’ agreement will convey the land to the Gwinnett Development Authority, which assign the lease to the Convention and Visitors Bureau. That group will sign agreements with Concord Sugarloaf. The initial lease will be for a 25-year term, with a 25-year extension option.
The developers are expected to invest $70 million in the county through construction of the hotel. The county does not have any additional expenses, as part of the agreement. Williams said such an agreement, with no backstop from taxpayers, is rare.
“This is good for everybody,” he said. “We’ve finally reached a point where we can go.”
The Marriott is one of three hotels in the works in the area. A 115-room Courtyard by Marriott on Satellite Boulevard broke ground in October, and a 166-room Embassy Suites is slated to begin construction by early June. All of the rooms for the three properties should be available in the next two and a half years, Williams said.
He said the hotel construction could help the county create an entertainment district around the Gwinnett Center. In addition to the convention center, the district has a ballroom complex, a performing arts center and a 13,000-seat arena.
“It will do wonders for that area,” said Jace Brooks, a county commissioner and member of the board at the Convention and Visitors Bureau. “The long-term vision, we are about to see it start to come to fruition.”
