EXCLUSIVE: City, Pezold companies agree to major expansion of downtown Marriott (Columbus: apartments, lease)
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The convention hotel that you always wanted, connected via sky bridge. Cheers!
Quote:
After nearly 20 years of starts and stops, the city of Columbus is on the verge of getting a true convention hotel that will be attached to the Trade Center.
City and Development Authority officials have confirmed to WRBL News 3 that there is an agreement to expand the Marriott hotel on Front Avenue and connect it to the Convention & Trade Center with an enclosed sky bridge.
The Marriott is owned by Family Holdings Sub LLC, one of the companies under the umbrella controlled by local businessman Jack Pezold. The agreement must be approved by Columbus Council and is on the agenda for Tuesday’s meeting.
Pezold companies Chief Operating Officer Tracy Sayers would not comment on the specifics of the deal, citing a non-disclosure agreement with Marriott.
The city is offering a nearly $4 million incentive package that includes cash, tax breaks, and property. That will trigger a more than $15 million renovation of the existing rooms and expansion of the full-service Marriott.
About $1.3 million of that incentive package would be to construct the sky bridge across Front Avenue south of Ninth Street. The city will own that walkway.
Currently, there are 177 rooms in the Marriott that will be upgraded in addition to about 90 new rooms that will be added. That will bring the Marriott to more than 265 rooms.
“This is big news,” Columbus Mayor Skip Henderson said. “It’s a game-changer, in my estimation, for the city of Columbus. We have long struggled to get into a competitive market with regards to our visitors and this is going to do it.”
It is one piece — though a critical one — in a growing downtown hotel expansion.
The Pezold companies are building an 88-room Hampton Inn at the intersection of Broadway and 12th Street, just three blocks north of the Marriott.
RAM Hotels has a 100-room-plus AC by Marriott under construction in the middle of the 1200 block of Broadway, a stone’s throw from the Hampton Inn. The W.C. Bradley Company has come forward with plans to build a riverfront new hotel just across from the TSYS parking deck along 14th Street.
The Marriott expansion will have no impact on the Pezold-owned Hampton Inn, Sayers told News 3. Construction for that $18 million hotel and parking deck has already started.
“With the expansion of this hotel and the other three hotels that have been talked about and the Courtyard Marriott in Phenix City, that gives us just under 700 rooms within a six-block radius,” Henderson said.
That allows the Columbus Convention & Visitors Bureau to expand its recruitment of larger conventions for the Trade Center.
A room-block agreement is part of the Memorandum of Understanding outlining the deal. It will allow the Trade Center to block or reserve more than 250 rooms at the Marriott and additional rooms at the Hampton Inn for conventions that require large guarantees. Those rooms will be sold for $125 per night for the first two years of the agreement, obtained by News 3.
Original plans had called for a parking deck to be constructed near the Marriott. That does not appear to be in the plans. Instead, the Marriott owners will lease 125 spaces from the nearby RiverCenter deck to accommodate the additional parking requirements. There will also continue to be surface parking on the property.
Development Authority Chairman Russ Carreker said now was the time to pull the trigger and make a deal to get a suitable number of hotel rooms adjacent to the Trade Center.
“The validity and vibrancy of downtown has made our city more attractive for conventions and the business that the Trade Center is doing and the management that is running the Trade Center now is doing a great job,” Carraker. “Really we just got the demand now that makes the expansion of the existing Marriott and newer hotels down the street. It makes them more viable.”
Henderson agrees.
“We have long struggled to get into a competitive market with regards to our visitors and this is going to do it,” he said.
Greater Columbus Chamber of Commerce Executive VP for Economic Development Brian Sillitto was involved in working out the details of the proposed deal.
“I have said it all along, this is a game-changer,” Sillitto said. “It’s 265 rooms across the street from the Trade Center, connected access. It means more people coming to Columbus. It means more conventions. And it means more of a steady flow of activity in the uptown area.”
There has been no timetable on completion of the project, but there will be a six-month period to get the required governmental approvals to move forward. Having a convention hotel attached to the Trade Center is something that city officials have been talking about since the early 2000s when the Trade Center was expanded to its current state.
And it will be years before the impact is fully known.
“I don’t think we will fully understand the change it will make in Columbus for many, many years,” Henderson said. “When you figure out we are able to accommodate almost 700 rooms in the downtown area, the options are almost limitless.”
Analysis: The Developer will construct an expansion attached to the existing Marriott, which
will add 90 +/- but at least 88 rooms, and this will bring the total number of rooms to at least
267. The Developer will maintain its brand as a full-service Marriott for at least 20 years. With
the approval of the City, the Developer will develop and construct a covered “Skybridge” from
the Marriott to the Trade Center. Once constructed the “Skybridge” will be owned and
maintained by the City. The Developer will renovate the existing 177 guestrooms and the
Common Areas to bring them to the same level as the newly constructed addition.
The Developer, or designated “Operator”, shall enter into a Room Block Agreement which
allows the Trade Center to “block” rooms for a convention at both the Marriott and the proposed
hotel at 1201 Broadway, in accordance with the Room Block Schedule. This RBA will be in
effect when there is a group that needs 250+ rooms. The certainty of the room availability and
the price of the rooms have been accounted for in the MOU. (Room rates will be $125 per night
for the first 24 months of operation.) Operator can be penalized the full amount of cash incentive
($2,300,000) if they do not adhere to the agreement. The RBA also includes obligations to make
rooms at the new Hampton Inn available.
Project Plans are to be completed within 6 months of executing the Development and Funding
agreement with construction beginning within 12 months of said agreement. Project
Completion/Opening is expected to be within 24 months of the agreement.
Financial Considerations: The Authority and/or the City will provide the land upon which the
expansion will be constructed at no cost to the Developer once construction is complete. The
land was acquired and set aside by the City and the Authority for this purpose at that time the
Hilton Hotel was purchased and converted to the Marriott. The City and/or the Authority will
provide cash incentives in the aggregate total of $2,300,000. It is requested to use $1,300,00
from the Economic Development Fund with the balance coming from Friends of Columbus Trust
Fund. It is likely to use approximately $1,000,000 of the Friend’s funds for the Skybridge. The
Friend’s funds can only be used for a public facility. The City, Developer, and Authority will
jointly develop a parking plan to address the needs of the Marriott as expanded. This will include
the lease at market rate of up to 125 spaces at the River Center Deck.
The Authority will issue revenue bonds, through its normal procedures, and in connection
therewith the City will provide ad valorem property tax abatements as follows: Real Property –
50% for 10 years, Personal property – 50% for 5 years, both beginning the year after Bonds are
issued. A tax abatement is estimated at $1,600,000.
The total incentives will be $3,900,000 ($2.3 million cash + $1.6 million tax abatements), plus
the value of the land and opportunity to lease the parking spaces in the parking deck at market
rates. All incentives will be “last-in” funding.
Legal Considerations: The City Attorney has reviewed this MOU and approved as to form.
Recommendation/Action: Approval is requested to execute the Memorandum of
Understanding (“MOU”) for the expansion of the Marriott between the Development
Authority of Columbus, GA, (“Authority”) the Columbus Consolidated Government (“the
City”) and Family Holdings Sub, LLC. The owners of Marriott, through a related entity,
Family Holdings Sub, LLC (“Developer”), has agreed to construct an expansion of the
Marriott and invest in a substantial renovation of the existing Marriott. The substantive terms
of the incentives and obligations involved in such expansion are contained in the MOU for
the purpose of maximizing the impact that the Trade Center has on the community by
expanding and improving the Marriott.
Any word on the number of stories it will be? If it’s 5 stories only this will be disappointing.
The ink is barely dry on the deal so there aren't any details like that out. But, I wouldn't imagine an 88 room addition would be that many stories. I'd bet on a three story addition just opposite of the pool with a ground floor connection to the existing building.
Any word on the number of stories it will be? If it’s 5 stories only this will be disappointing.
There is limited room in the parking lot so my guess is same number of stories as the current building, and extended out next to the pool.
Number of stories don't mean anything to me. Over 200 rooms CONNECTED to Trade Center means everything. They're turning people away every week at conventions that need hotels within walking distance.
Also have to remember when you're selling 60-70% of your rooms, you've got to sell Marriott on a reason to expand. Obviously, they wouldn't let them do a 177 room expansion.
There is limited room in the parking lot so my guess is same number of stories as the current building, and extended out next to the pool.
Number of stories don't mean anything to me. Over 200 rooms CONNECTED to Trade Center means everything. They're turning people away every week at conventions that need hotels within walking distance.
Also have to remember when you're selling 60-70% of your rooms, you've got to sell Marriott on a reason to expand. Obviously, they wouldn't let them do a 177 room expansion.
Of this deal, parking is my biggest concern.
Parking in the current parking deck(s) is way underutilized---despite being free! So there should be no problem. With the increased convention business, I would hope that the Rialto and Bradley theaters will be renovated into small multi-plexes!! Both walking distance of ALL the hotels!!! After a day of conventioning how about dinner and a movie??
How is Pezold going to handle all of these projects? They are struggling getting the City Mills project started and the Hampton Inn is moving at a snail's pace.
How is Pezold going to handle all of these projects? They are struggling getting the City Mills project started and the Hampton Inn is moving at a snail's pace.
Ah! I was waiting on this comment.
Whether or not Pezold is fast enough for any of y'all. Who else is investing in Columbus they way that they are? I'll wait...
City Mills is a long term project. I wouldn't expect anything of this project until they're truly ready to go. I'd expect event space on the river (e.g. Power House), then restaurant and hotel/apartments. Estimated 2021/2022 start?
Hampton Inn has had a lot of issues, which have already been hashed out over on the other threads. (1) Parking deck issues including wanting City/WC Bradley to come in, offering to go in with RAM, etc. (2) Hilton not allowing them to continue until 1 was sorted out (3) Support of the building and basement next door (not owned by them) and I'm sure fiancing/bonds AND waiting to see how Marriott project played out. Estimated complete date 2021. If anything like other RAM projects, will still beat AC even though they seem to be ready.
Marriott is going to require them to remodel Marriott regardless, so this will, in my opinion be running side-by-side with Hampton project. Marriott gives hard dates, or they won't renew your license.
All in all, everything listed above is great for Columbus, and will get done. Pezold owns and operates all but 1 of the Marriott properties in Columbus and majority of the Hilton properties. If we're talking local experience, they're the ones to get it done.
Mad props to them for wanting to invest in Columbus. You'll notice from their portfolio, they don't really invest outside of Columbus. I'm sure they've been given the opportunity. It may be a bit, but I'll see y'all back here when these projects complete. I might have great grand children, but I'll see ya here.
Parking in the current parking deck(s) is way underutilized---despite being free! So there should be no problem. With the increased convention business, I would hope that the Rialto and Bradley theaters will be renovated into small multi-plexes!! Both walking distance of ALL the hotels!!! After a day of conventioning how about dinner and a movie??
I was mostly referring to on-site parking, parking in the street, etc. Either way, lots of people get turned off by parking that isn't 100% convenient.
I went to a hotel in Gulf Shores recently, and the parking was maybe 30 yards from the front door of the hotel? and you would of thought that it was 3 miles away. Every. Single. one of their bad reviews is about the parking being "so far away", even though it's a short walk.
With all of that being said, I honestly think with the connected sky bridge that parking in Trade Center parking garage might of been just as good, with the right placement of the sky bridge.
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