Developers went down to the wire Monday as three companies turned in proposals for building a hotel next to the city's forthcoming convention center, the last of which came in minutes before the 5 p.m. deadline. They were the only proposals received in the five-week window for offers.
3 D Management, led by Wilmington-based developer Steven Arp, wants to build a six-story Hotel Indigo with approximately 150 rooms. Hotel Indigo is a new brand under the umbrella of InterContinental Hotels Group, which includes Crowne Plaza and Holiday Inn. The nearest Indigo is in Atlanta.
Arp has just started building a pair of Holiday Inn Express hotels in
Leland and Monkey Junction.
Hanover Hospitality Group also wants to bring in a fledgling brand, proposing to build a 240-room aloft Hotel. The first aloft hotels, which will feature a sleek, modern decor, are scheduled to open this year across the nation, including in North Charleston and Charlotte. They are part of Starwood Hotels & Resorts Worldwide.
Hanover Hospitality consists of two partners, hotel consultant and real-estate appraiser Haywood Newkirk and developer Terry Espy, who is already on the verge of being a major player downtown. Later this year, she and other partners plan to tear down the old Wachovia building on North Front Street to build luxury apartments.
The third proposal did not focus on a particular brand. If selected, Jerome J. Parks Companies out of Maryland indicated it could bring in hotels from one of several companies including Marriott, Hilton and Starwood.
Parks is in the midst of developing Park Place near Annapolis, Md., a $300 million mixed-used project that includes a $65 million hotel, according to information in Parks' proposal.
The three proposals represent just half the responses that the
Wilmington received last summer when officials rejected the six offers they received. Purchasing manager Steve Bridges said quality was more important than quantity.
"If I can get one good one, I'll be happy," Bridges said.
City officials plan to vet the proposals quickly before handing the city council a recommendation. The council is facing pressure to find a partner to ensure the hotel opens at the same time as the convention center in early 2010, according to the current schedule.
Some questioned the council's decision last fall to go ahead with the convention center without a hotel partner in place. But city officials said they made the hotel deal more alluring by ending years of debate and committing to building the convention center.
On Monday, Mayor Bill Saffo said some developers might have been turned back by the city's increased demands, which include a $1 million performance guarantee, but he said he was heartened that two local developers felt strongly enough about the project to throw in their hats.
Councilman Jim Quinn said he expected more than three proposals, but like Saffo, he also pointed to the tough financial demands of qualifying for the project.
The official deadline passed at 5 p.m. Monday, but Bridges said he might consider latecomers.
Sam Scott: 343-2370
sam.scott@starnewsonline.com