Hyatt at the Oregon Convention Center | 180'-6" | 14 floors | Complete

[tworivers]

...there will be two seven-month development phases.
^^What does this mean exactly? Two phases before construction even begins? Or including construction?

Metro goes forward with HQ hotel study

POSTED: 12:21 PM PST Friday, November 9, 2007
BY TYLER GRAF

Metro Council on Thursday voted to spend more than $600,000 on a feasibility study for the proposed convention center hotel.

Metro will pay developers Garfield Traub and Ashforth Pacific $600,000 for the feasibility study and spend $69,000 on project costs and staffing.

Still, Metro must negotiate with other public entities, including the Portland Development Commission and the city of Portland, to secure more money for the project.

“There’s got to be a deal on this,” Reed Wagner, Metro Council’s staff manager, said. “Metro is not capable of guaranteeing the bonds on this.”

No private entities will be included in funding discussions, Metro policy associate Anthony Andersen said.

And because the bond market “is a mess right now, even if the hotel is (built) and has a bad year, we need to show that we can pay,” Wagner said.

If, after the study, Metro decides to build the convention center hotel, there will be two seven-month development phases.

"We're trying to get everybody more comfortable with this process," Anderson said.

[MarkDaMan]

looks like the hotel is starting the design review...

http://www.portlandonline.com/shared/cfm/image.cfm?id=188853
Thanks sopdx for the heads up!

[pdxtraveler]

Doesn't look like anything exciting, but this is SERIOUSLY needed. The Convention Center just isn't being used to it's potential until this is in place.

[sopdx]

How could you tell from that? There weren't any renderings.

[zilfondel]

Gorgeous design. 21 stories.

[WonderlandPark]

Lobby to roof looks to be 240' and to mech. penthouse 260'

[bvpcvm]

i thought this thing was dead...?!?

[zilfondel]

^ Oh, it might be. This is Metro, after all. :)

[rsbear]

^ Oh, it might be. This is Metro, after all. :)

That comment is such a value add. Thanks much.

[bvpcvm]

oh relax, dude. we're allowed a little sarcasm here. on occasion.

[MarkDaMan]

This is the design. The project isn't dead. Metro is probably going to move forward with it. Since none of the commissioners are now facing serious challengers for the upcoming election, they are a little more free to make the controversial decision of making this happen.

http://img87.imageshack.us/img87/9056/hotel3uz9.gif
http://images.google.com/imgres?imgurl=http://img87.imageshack.us/img87/9056/hotel3uz9.gif&imgrefurl=http://www.skyscrapercity.com/showthread.php%3Ft%3D399901&h=464&w=600&sz=140&hl=en&start=2&um=1&tbnid=lov5ilWTufKCYM:&tbnh=104&tbnw=135&prev=/images%3Fq%3DOregon%2BConvention%2BCenter%2Bhotel%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN

[sopdx]

I can't tell if that's the ZGF design or not, but it looks pretty cool. The subtitle states phase 1 @ 400 rooms, however I believe the proposal before design commission is phase 1 @ 600 rooms.

[rsbear]

oh relax, dude. we're allowed a little sarcasm here. on occasion.

Relax yourself, "dude", and while you're at it, shove off.

[tworivers]

^^^Totally unnecessary, rsbear.

[MarkDaMan]

^this thread is starting to look like the Clinton-Obama campaign...:poke:

I can't tell if that's the ZGF design or not, but it looks pretty cool. The subtitle states phase 1 @ 400 rooms, however I believe the proposal before design commission is phase 1 @ 600 rooms.

I think this was the first proposal to the PDC. Since Metro took over, and time has passed, and as you state, it is for 400 rooms in the rendering, the design should be changed. The documents they submitted though don't look too much different.

Please, dear God, don't let us get something like Phoenix's new Sheraton convention center hotel!

http://nitnelav.com/DowntownMarch162008/7.jpg

http://nitnelav.com/DowntownMarch162008/sheraton5.jpg
pics by HX_Guy
Phoenix Photo thread: http://forum.skyscraperpage.com/showthread.php?t=147698

[tworivers]

^^^ Whoa! That is amazing. As in amazingly awful. No design review?

What is that building off to the right, though, with the vertical orange/red pattern? Looks intriguing.

I think with the convention center hotel here, we're kind of stuck in a corner. While I worry somewhat about public ownership (and any failure hindering future projects), I think it's an important piece of the Lloyd District puzzle, along with the streetcar, and I hope it gets built asap. At this point I don't trust the "market" to fix the Lloyd, or even begin to, when the biggest landowner didn't even want to take the risk of building residential on its parking lots during a housing boom (remember the Ashforth superblock?). I think we need some publicly-financed catalyst projects first -- fingers crossed.

[rsbear]

^^^Totally unnecessary, rsbear.

You're right, tworivers, and I apologize.

I come here to learn about new projects in Portland and view the great status updates and pictures folks provide.

I guess I've reached the point where the negativity-for-negativity-sake comments frequently evident in this forum are too much for me. I just don't find them enjoyable nor do they add any value. They're just, well, negative.

[MOPIdaho]

Boise's spin

http://farm4.static.flickr.com/3221/2346338430_5263e209a3.jpg

http://farm3.static.flickr.com/2096/2346338460_8fdfc649ca.jpg
notice the lack of windows on the sides

[MarkDaMan]

^uck! Boise...let's hope our hotel looks a little better...those are horrible!

What is that building off to the right, though, with the vertical orange/red pattern? Looks intriguing.

That's the new ASU downtown Phoenix campus. The unfinished buildings behind it are the dorms.

[sopdx]

If ZGF is the selected architect we are guaranteed it will have much more style than either of those two.

[Dougall5505]

denver's isn't exactly a prize either
http://denverinfill.com/images/special_topics_thumbs/hyatt/2005-11-05.jpg
photo by denverinfill.com

[zilfondel]

Well, ZGF is the firm on the currently submitted proposal. So - I would assume we're in the clear!

Proposal:
The concept for the Portland Westin Convention Center Hotel is a 2-block proposal for the property
bordered by NE Holladay, MLK Jr. Blvd., Oregon and Grand. The project includes approx. 500,000
gsf on the two blocks and a resulting FAR of 6.3:1. The north wing of the hotel tower is 23-stories.
The hotel will have 600 rooms in the initial phase and 43,000 sf of banquet, meeting and function
space. All of the 600 rooms are located on the north block along with the hotel amenities including a
restaurant and bar. The function space spans the two blocks over Pacific Street and is entered from
the north off of Holladay, the west off of MLK via the hotel lobby and the southwest by a lobby which
is directly across from the Convention Center main entrance. Parking for 170 cars for hotel guests is
located below grade and accessed from the Pacific Street entrance drive. Additional parking will be
shared with the Oregon Convention Center by mutual arrangement. Expansion of the Westin from
600 rooms to 800 is planned to take place with a tower extension on the south block. The Westin
hotel will be designed to be silver LEED certified.

(Note: they don't put typos in design review proposals!)

I am pretty darned optimistic about this project, actually. Pops right out of the grave and back into the limelight. Quite the surprise, really.

[bvpcvm]

hmm, if they're calling it the westin in the design review i guess that would mean that westin is on board... this is surprising - and good news!

[PacificNW]

The Westin is part of the Starwood Group of Hotels. If this project happens and is a Westin there will be any number of additional Starwood properties in the Portland/Vancouver that could also be marketed for conventions, etc. if the new convention center hotel is full. The PDX Sheraton, the Luxury Collection (The Nines), the downtown Portland Westin, the Vancouver Westin, the Loft @ PDX and the W (if one is built in Portland). This could help Portland in attracting major sporting events when competing hotel rooms are also considered.

[urbanlife]

this makes sense that this would be a Westin because they have been trying to get a large scale hotel in Portland for a while and so far had to settle for the little one on Alder, which isnt even really a Westin by their standards.

I am happy to hear ZGF is working on this, they seem to be the one big firm in town that I dont feel let down by their final product.

[pdxtraveler]

The other good thing about Starwood (though the other large brands probably do this and I don't know about it) is that they have a portfolio of conventions they work on every year and they rotated through their convention hotels. Those conventions only deal with Starwood so we wouldn't get a stab at them otherwise.

[sopdx]

All in all, this is really good news...and way, way overdue. It will finally pick up that area.

[bvpcvm]

so i guess i'm still confused about what's going on here. is there still a need for a public subsidy? if so, has it been approved? (seems like i would have heard something - and i haven't) and if it hasn't yet, then what are we getting excited about?

[MarkDaMan]

^still a public subsidy by Metro. The fact this is moving through design review has me believing the developer has reached a 'pre-understanding' with Metro. Wouldn't surprise me if they didn't officially agree to help build this thing in the next few months. Word has it they have been dying to get a hotel to take full advantage of the OCC, which they are currently losing money on.

[cab]

Metro needs to get major kudos. Out of all the government agency's they usually know how to get things done.

[tworivers]

^^^ Seriously.

Let's hope that includes undoing the CRC.

[PacificNW]

CRC? ...What does CRC mean?

[cab]

delete.

[zilfondel]

You guys see the Dubai Death Star?

http://www.treehugger.com/files/2007/05/rem_koolhaass_d.php
http://www.nytimes.com/2008/03/03/arts/design/03kool.html?pagewanted=1

It's a convention center. I think theirs will be able to blow ours away... :P

http://graphics8.nytimes.com/images/2008/03/03/arts/Rem600.jpg
image courtesy NYtimes

[tworivers]

What does CRC mean?

Sorry: Columbia River Crossing

[tworivers]

And the saga continues...


HQ Hotel's timeline changes

POSTED: 03:00 PM PDT Friday, June 13, 2008
BY TYLER GRAF

The proposed Oregon Convention Center Headquarters Hotel has its share of detractors and supporters. For these folks, it's either a shameless waste of tax-payer money or a much-needed boost to the city's civic character -- depending, naturally, in which quadrant of the OCC-Hotel-support spectrum they fall.

Although chatter concerning the hotel has been teeth-clenchingly low as of late, with both sides keeping stum as little fresh news has emerged, the rest of the summer will change this.

Expect complaints and praise aplenty, directed at the possibility of the project.

In a memo today, Metro announced it will adjust the HQ Hotel's project timeline to support the developers' interests. On July 1, though, Metro will receive an initial cost estimate from the developers. On August 8, Metro will receive another set of "deliverables" from the developers, according to the memo.

Tenuous plans call for an October 2 Metro decision on whether to move ahead with the publicly funded hotel project.

[LSPDX]

This hotel would be such a blessing for the Lloyd District and Portland in general. By the time metro goes through this process over and over, the hotel could be coming out of the ground on October 2nd. Minus the economy, it just seems like everytime a developer proposes to breath new life into the Lloyd District and surrounding area it falls through. I don't mean to be negitive but I'm tired of watching this hotel proposal & others continue to be shot down. I know out of all the agencies in Portland, Metro has the balls to get it done. However I will believe it when I see the hotel coming out of the ground.

[pdxtraveler]

And unfortunately while we sit, in process.. Denver, Phoenix, and San Antonio finish theirs up and Ft Worth is about 1/2 way up. Come on we need to get a move on.

[pdxman]

^^^I couldn't agree with you more. Portland needs to get a move on or else we lose out.

[alexjon]

Unfortunately, Portland doesn't have the Convention strength of Phoenix or Denver. And none of the listed have the strength of San Antonio.

Of course, that pains me since my hometown is basically the cute little convention center of the United States.

[MightyAlweg]

I think the other thing to keep in mind here is that the Oregon Convention Center is on the small side, and any magnet hotel is going to need a big fat subsidy from the locals.

There are many conventions that would never be able to consider landing in Portland because the OCC facilities are so small compared to some other West Coast options. And yes, the big fish in the convention pool have the entire country to consider, and unless there's some compelling reason to be in Portland for a particular year, if they are looking at a West Coast venue they will also be looking at San Diego, San Francisco, Los Angeles, Anaheim, etc.

Take, for example, the Anaheim Convention Center here in Orange County. It's HUGE! It has an attached sports/concert arena in the massive complex. It sits directly across the street from Disneyland and California Adventure. It is surrounded by two major entertainment malls, Downtown Disney and GardenWalk, with dozens of fancy restaurants and shopping to soak up lunch and dinner crowds. It even has both a Ruth's Chris and a Morton's Steakhouse within a block of the place to host those fancy expense account dinners that are de riguer during any big convention. There are literally thousands of hotel rooms at every price point within a five block radius, sharing hotel stock with the Disneyland Resort area.

And yet the local city government is going to have to heavily subsidize another anchor hotel to join the property in the next three years during the latest expansion project that will make the center even bigger. No matter what the venue or the locale, government always seems to have to step in and subsidize these types of projects. http://www.ocregister.com/ocregister/homepage/abox/article_2038264.php (Some renderings of the proposed hotel designs in the More Photos tab in that link.)

As a point of reference, a size comparison:

Anaheim Convention Center
Exhibit Space: 815,000 Square Feet (850,000 Square Feet in 2011)
Meeting Space: 130,000 Square Feet (300,000 Square Feet in 2011)
Concert Arena: 9,100 Seats

Oregon Convention Center
Exhibit Space: 255,000 Square Feet
Meeting Space: 50,000 Square Feet

The point being, even convention centers three times the size of the OCC struggle to land a decent 3 star anchor hotel. :rolleyes:

[alexjon]

San Antonio's CC has 1.3 Million Sq. Ft. and has a Grand Hyatt and over 9,600 rooms (I think it's at 10,000 with the new hotels) in the area:)

[MightyAlweg]

San Antonio's CC has 1.3 Million Sq. Ft. and has a Grand Hyatt and over 9,600 rooms (I think it's at 10,000 with the new hotels) in the area:)

And while it's smaller than the Anaheim Convention Center, I would definitely put San Antonio in the same category of city as Portland, in regards to metro area population and national recognition. Anaheim is in a convention demographic a notch above most cities, but nowhere near the behemoths of the industry with the giant convention centers in Las Vegas and Orlando. But the comparison between San Antonio and Portland is more perfectly matched. Or at least serves to illustrate the point that the OCC is working with a sizeable handicap when it comes to getting the bigger and more lucrative clients.

Orange County, California Population - 3.1 Million

Anaheim Convention Center
Exhibit Space: 815,000 Square Feet (850,000 Square Feet in 2011)
Meeting Space: 130,000 Square Feet (300,000 Square Feet in 2011)
Concert Arena: 9,100 Seats

San Antonio, Texas Metro Area Population - 1.9 Million

San Antonio Henry Gonzalez Convention Center
Exhibit Space: 440,000 Square Feet
Meeting Space: 100,000 Square Feet
Cockerell Theater: 2,500 Seats

Portland, Oregon Metro Area Population - 2.3 Million

Oregon Convention Center
Exhibit Space: 255,000 Square Feet
Meeting Space: 55,000 Square Feet

Which brings up the question... How do you expand the Oregon Convention Center if it's hemmed in on the west and south by freeways, on the north by Light Rail, and on the east by a major thoroughfare and a "headquarters hotel"?

[pdxman]

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

[MightyAlweg]

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

I think it might have more to do with conventions being bigger business in Sun Belt cities of all sizes. Portland actually has a larger, and newer, convention center than Seattle. Here's a few more quick comparisons illustrating the apparent phenomenon of convention centers getting larger as you go further south;

Seattle, Washington Metro Population - 3.9 Million

Washington State Convention & Trade Center
Exhibit Space: 205,000 Square Feet
Meeting Space: 57,000 Square Feet

San Francisco, California Metro Population - 7.2 Million

The Moscone Center
Exhibit Space: 440,000 Square Feet
Meeting Space: 155,000 Square Feet

San Diego, California Metro Population - 2.9 Million

San Diego Convention Center
Exhibit Space: 615,000 Square Feet
Meeting Space: 205,000 Square Feet

[alexjon]

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

Like Anaheim, it's primarily a tourist town, regardless of what people from my hometown would like to portray it as.

20 Million+ visitors a year, cheap accommodations, location, etc. Number one pedestrian-only environment in the country. It's fun :)

[MightyAlweg]

So, just thinking out loud here on a topic I know relatively little about...

Maybe the comparatively small size of the Oregon Convention Center is appropriate for the national convention market that Portland competes in? It's very clear from my 10 minutes of Googling that the farther south you go, the bigger the centers get, regardless of how big the host city is. Perhaps the mega-conventions would never consider setting up camp for the week in a northern city because the attendees would object to not being in Fun N' Sun Vacationland? Perhaps there is really no need to worry about expanding the OCC over the freeways, or annexing property on the opposite side of MLK Blvd.?

The Sun Belt factor appears to be the key motivator here, as the size of the actual city and it's reputation for being cosmopolitan and hip has little to do with the ability to host large conventions.

Look at Vancouver BC and their convention center. It's smaller than Portland and Seattle, and it was even a purposeful gift to the city after the facility was originally built as the Canada Pavilion for the 1986 World's Fair. (Similar to San Antonio's facility that grew out of a pavilion at the 1968 World's Fair) It's getting a big expansion right now, in preparation to host the media center for the 2010 Winter Olympics, but it's still very small compared to Portland and Seattle.

Vancouver, British Columbia Metro Area Population - 2.5 Million

Vancouver Convention & Exhibition Centre
Exhibit Space: 91,000 Square Feet
Meeting Space: 30,000 Square Feet

Which leads us back to a question about the headquarters hotel.... Considering the size of the OCC and the apparent market it competes in, a truly large headquarters hotel probably isn't warranted. That's likely why private industry on its own hasn't rushed in and built anything there in the last 18 years since the OCC opened. I do think a headquarters hotel is neccesary, as the hotel stock in the Lloyd District is not very glamorous or noteworthy, and it gets less desirable with each passing year. But a towering monster with 1,000 rooms doesn't seem to be warranted.

Still, a really posh Westin could be nice. Or my particular favorite, a Conrad. Anyone ever stay in a Conrad, the top tier of the Hilton brand? I was lucky enough to stay in the Conrad Tokyo, and it was like visiting heaven for 5 days. Indianapolis has a Conrad, so there's a precedent set for mid-size American cities to get one. And Portland is several notches up the hip meter from Indianapolis, trust me.

Someday though, Portland needs a 5 star hotel like a Mandarin Oriental or a Four Seasons or a Conrad. Those are way above the range of the average "nice" convention center hotels. But it would be great for Portland one day. The older, frumpy locals would probably jump out of their crusty old birkenstocks in horror when they saw the lobby of a Portland Mandarin Oriental or Portland Conrad, but I think eventually that change will arrive in the Rose City. The Nines is the first little toe dipped in the pool for that market, but there's even swankier and posher hotel brands out there that have no real representation in the Pacific Northwest currently.

[MightyAlweg]

Speaking of conventions, a good friend of mine from here in OC just texted me that she has just landed in Portland this afternoon.

She and her husband are there for several days while he attends a restauranteur convention. Her husband is the executive chef for the fancy restaurants at Disneyland, and he goes to this particular convention every year with the executive chefs for the Disneyland Hotel restaurants. This is the first year it's been held in Portland, and they are both excited to explore the city for the first time.

They are staying at the Heathman, and I assume the convention sessions are being held at the OCC? She will explore the Pearl and the gardens and such while he attends the sessions this week. I'll report back and tell you their impressions when they get home.

[PacificNW]

Portland Business Journal
Tuesday, July 1, 2008 - 2:56 PM PDT
Convention center hotel price tag: $247.5M
Portland Business Journal


It will cost $247.448 million to design, construct and open the Westin Portland at the Convention Center, the first firm figures attached to the so-called "headquarters hotel" in the nearly 20 years since it was first proposed.

Tuesday, the Metro Council got its first look at the estimated cost to design, construct and open a four-star, 597-room hotel at the Oregon Convention Center. The figure is based on designs submitted to the city and does not contemplate the cost to borrow the money needed to actually build the facility.

A final figure is due in early August and will set off a 60-day round of public meetings, leading to a final decision on the hotel by early October.

Most involved with the hotel effort expected costs to climb above previous estimates, which had ranged up to $244 million. At $247 million, they were not disappointed.

The budget is affected by the rising cost of construction materials, estimated at 30 percent since Portland first selected the development team of Garfield Traub Ashforth LLC nearly two years ago. Too, the facility would occupy two blocks that offer construction challenges, including a 20-foot drop from one side to the other.

Metro Councilor Rod Park, a long-time champion who says the Oregon Convention Center remains incomplete without a dedicated hotel, plans to recommend the Metro Council press ahead.

"These are the first real numbers on a real project," he said Tuesday.

Park reiterated that Metro needs financial partners to undertake such a large project. The project will almost certainly be backed by publicly sponsored bonds, which would be repaid from hotel operating revenues. The council isn't willing to issue the bonds alone, he said.

The Metro Council is expected to vote on the plan by October.

A pro forma, or estimate of the future financial operation of the hotel, does not contemplate servicing the debt. According to figures provided by hotel operator Starwood Hotels & Resorts Worldwide Inc., the hotel will turn a $6.1 million "profit" the year it opens, 2012. That figure is based on room rates of $150 per night and an average occupancy of 58 percent.

The Oregon Convention Center opened in 1990 and always included plans for a hotel to serve convention-goers.

With no private developers willing to take on the expense of building a convention-ready hotel, the Portland Development Commission stepped in, acquired the property and selected the Garfield Traub Ashforth team to develop it. The team also includes Zimmer Gunsul Frasca Architects LLP, Turner Construction Co. and RTKL International LTD. Metro has engaged Seattle Northwest Securities as its financial adviser.

In 2006, the PDC handed off leadership for the effort to Metro, the agency that operates publicly owned facilities in the Portland area, including the convention center. Metro commissioned the $600,000 cost study.

At 600 rooms, the proposed hotel meets the bare minimum standards for a Westin-flagged facility and the needs of the convention center.


http://www.bizjournals.com/portland/stories/2008/06/30/daily17.html?jst=b_ln_hl

[pdxman]

Those don't seem like outrageous figures to me, I say build it and build it now! Maybe even tack on another 200 rooms.

[PacificNW]

Yup, I agree...it is only going to get more expensive as time passes. "Puts people to work!"

[PacificNW]

http://img.photobucket.com/albums/v120/PacificNW/Dump/Picture3-1.png

[pdxman]

^^^Thanks for the rendering! Hard to tell from that angle whether its a winner or loser with regards to design. Hopefully the architecture side of the project won't take a back seat.

[Okstate]

What is a "Westin-flagged facility"? Does that simply mean a convention capable Westin?

[pdxtraveler]

What is a "Westin-flagged facility"? Does that simply mean a convention capable Westin?

'flagged' just means named or branded Westin. It isn't owned by Westin but they manage it. It is great to have one of these brands as Westin-Starwood has a whole coral of conventions that they move between their contracted convention centers and hotels, a business guarantee.

[Delaney]

There is another rendering on the Mercury Blog:

http://blogtown.portlandmercury.com/portland/Blog?blog=41935&oid=831365

[alexjon]

600 rooms at 1.25 occupancy -- what's the convention capacity then? Doesn't seem all that great.

[tworivers]

Hope Sam can pull this one of its nosedive. The Lloyd needs this project. Of course, I don't want taxpayers to get hosed, either.

Downturn could doom Portland's Convention Center hotel
by Ryan Frank, The Oregonian
Sunday December 07, 2008, 9:00 PM

Portland's on-again, off-again plan to build a convention center hotel is near death, Metro Councilor Rod Park said Sunday.

A recommendation from officials at Metro, the regional government, suggests halting the $200 million-plus project over worries about the financial crisis and bond markets.

The Metro Council is scheduled to decide Dec. 18 whether to spend more money on plans for the 600-room, taxpayer-supported hotel.

"The odds of us continuing are pretty slim," Park said.

The hotel project still could be resurrected. Portland Mayor-elect Sam Adams will meet Monday with government leaders, tourism officials and the developer, Ashforth Pacific, to try to salvage the project.

"The hotel is not dead, but it's definitely challenged by the recession," Adams said Sunday.

Adams could pull the project management back to City Hall once he takes over as mayor in January. The project moved from the Portland Development Commission, the city's urban renewal agency, to Metro after Mayor Tom Potter said he wasn't interested in providing the taxpayer support needed.

"All options are on the table," Adams said. "If the project is feasible and if it takes the city or PDC to get it done, then that option is on the table."

Willamette Week first reported the hotel's latest struggles on its Web site Saturday.

Tourism boosters and politicians have pushed for the hotel since the late 1980s. They contend the hotel would attract new and bigger conventions to the Oregon Convention Center and spur spending for the economy. Opponents, including other hoteliers, argue that a tax-supported hotel would flood the market and drive down room rates.

The hotel has suffered from tepid political support and a big budget.

The latest proposal calls for Portland to sell bonds to pay for the hotel construction. Metro would own the hotel and pay back the debt with hotel revenues, Park said. The revenues, though, wouldn't be enough to cover the debt payments and provide the cushion required by bondholders.

Metro has tried to plug that gap with other public resources. In today's market, though, the bonds would sell at interest rates too high to make the hotel pencil out. Those bond market troubles persuaded Metro staff to stop even though the bonds wouldn't be sold for another 12 to 18 months.

The Metro Council will decide Dec. 18 whether to spend about $5 million more to continue the project. The Portland Development Commission would contribute $1.5 million of that cost.

Park, one of the Metro Council's biggest hotel supporters, said he'd vote to halt the project if that's what the staff recommends.

"None of us want a project that doesn't pencil out," Park said.

-- Ryan Frank; ryanfrank@news.oregonian.com

[bvpcvm]

it looks like that office tower at 100 ne multnomah is dead as well. the permitting process hasn't budged since last april (http://www.portlandmaps.com/detail.cfm?action=Permits&propertyid=R182157&state_id=1N1E34AA%20%203800&address_id=&intersection_id=&dynamic_point=0&x=7647468.93622&y=687002.670243&place=NO%20ADDRESS%20AVAILABLE&city=PORTLAND&neighborhood=LLOYD%20DISTRICT&seg_id=0). looks like this area will remain dead for a while.

[pdxtraveler]

What continues to bother me about getting the hotel built is the hotel industry. If memory serves they keep saying building the convention center hotel will put too much supply in the market. In that case STOP BUILDING OTHER HOTELS! Not that I am not happy for more, but if it hurts the chances of the MUCH needed convention hotel then it isn't good. I mean we just go the Nines, the Courtyard on Oak is almost done, now there is a new design review for a combined Summerfield Suites/Hyatt Place at Riverplace.

[Delaney]

Hoteliers don't want to build and operate a Portland Convention Center Hotel because it is a money loser in this market - just like the Convention Center. We are a lower tier city for conventions, and always will be. Without heavy, ongoing subsidies no operator will touch it because sustaining such a large facility with such a marginal market is not very enticing. Downtown is a much more stable bet due to its amenities, and the types of hotels being completed there are relatively inexpensive compared the Convention Center (remodels mostly).

That new riverplace one is an odd ball though...I wouldn't be surprised if it didn't happen. They must be trying to get in on the South Waterfront action before it really takes off.

The other problem for the Convention Center is that they have a chicken and the egg situation. Hoteliers tell them to land some big conventions and then they'll consider building a hotel. Convention planners tell them to get a hotel and then they'll consider having a convention in Portland.

Now with the recession and the region's other priorities, it isn't going to happen for a while, if at all.

[urbanlife]

What continues to bother me about getting the hotel built is the hotel industry. If memory serves they keep saying building the convention center hotel will put too much supply in the market. In that case STOP BUILDING OTHER HOTELS! Not that I am not happy for more, but if it hurts the chances of the MUCH needed convention hotel then it isn't good. I mean we just go the Nines, the Courtyard on Oak is almost done, now there is a new design review for a combined Summerfield Suites/Hyatt Place at Riverplace.

nah, the only hotel owners that have complained about that, are more about being greedy and not what is right for the city. I wouldnt listen to them too much. Recession or not, this is still an important move for the city if they wish to fully use their convention center. I say, the smart move would be to push this forward, keep alot of construction workers in business, then by the time this is finished it should hopefully be coming on the market close to an upswing cause as we all know the economy isnt gonna stay bad forever.

[65MAX]

How about a moratorium on all new hotels in Portland until a Convention Hotel is finally under construction? Is this possible?

[Snowden352]

Sure, if the city really wanted to, they could decide to prevent any builders from building a new hotel. But, how smart is it to tell a private company who is willing to put millions of dollars into building a new hotel or remodeling an old one "no" during a recession?

[Joeplayer19]

i hope sam gets it done

[PDX City-State]

How about a moratorium on all new hotels in Portland until a Convention Hotel is finally under construction? Is this possible?

That's just plain ridiculous. Why would you discourage private investment to build something that (mark these works) is going to bleed money. If this thing is such a great idea then a private firm would build it.

[urbanlife]

That's just plain ridiculous. Why would you discourage private investment to build something that (mark these works) is going to bleed money. If this thing is such a great idea then a private firm would build it.

I agree with you on this one, but often times something of this size needs help to pencil out. Though I would like to see the city to take the softer side of the deal so if it goes bad, we lose the least in the matter. As well as that the city get paid back what it put into at an accelerated rate.

This is sort of like having a sports team needing a new stadium, often times it is the city and state that is asked to help out with the bill.

Actually that made me think of this, if the city is seriously interested in this project, then it would make sense for the city to wish the state to get on board with this idea to some degree because bringing money to Portland is also bringing money to the state.


But I do agree with you that the city shouldnt be the one left holding the bill at the end of the day.

[MarkDaMan]

I wish the bOregonian would replace Ryan Frank...

Convention center hotel's future as shaky as its past
by Ryan Frank, The Oregonian
Tuesday December 16, 2008, 9:56 PM

Even in a city that loves government process, the convention center hotel sets a new standard for talk, not action.

The city declared the hotel Goal 1.1 when it started an urban renewal district in the Lloyd District -- in 1989.

Nearly 20 years later, Mayor-elect Sam Adams emerged from a closed-door City Hall meeting Tuesday with other politicos and developers to proclaim plans for the $227 million hotel would live on.

That's saying something.

Less than two weeks ago, executives at Metro, the regional government, tried to kill the taxpayer-supported hotel. They worried about high interest rates, a nasty recession and a lack of political support from City Hall and Multnomah County.

Adams, though, wants to make his own run at building the hotel. "No question it's troubled," Adams said after Tuesday's meeting. "But we haven't exhausted all the possibilities."

The convention center hotel is one of the more complex public-private deals in a city that adores them. Here's your reader's guide to a 20-year effort.

It's been 20 years. The hotel wasn't built in Portland's real estate Gilded Age. Why are we still talking about it in a historic recession?

Because politicians, such as Adams, don't want to let go.

They want to fall in love with the hotel's benefits but can't get over its risk. If it worked out, the hotel would boost the regional economy and revive the worn-out Lloyd District.

The anti-hotel side says it would flood the market and drive down room rates citywide.

The pro-hotel side says it would draw new and bigger conventions. The new visitors would spend money at shops and restaurants and leave town without draining public services.

Why does the hotel need taxpayers' support? Private developers are building hotels across downtown.

Convention supporters say they need a 3 1/2-star with 600 rooms and 34,000 square feet of ballroom and meeting space. Private investors would require a 20 to 25 percent return on a hotel of that size and quality. Portland's model, though, wouldn't generate anything close to those returns.

So, to get the hotel they want, the government must build it.

The government building a hotel?

Yep.

Under the current proposal, the city would sell bonds to pay for the hotel construction, then pay off the debt with the hotel's income. Metro, which owns the convention center, also would own the hotel. Other cities have done it this way.

The Portland Development Commission, the city's urban renewal agency, would put up about $16 million in land and cash contributions raised through property taxes in the urban renewal district.

The problem: Even with the most upbeat assumptions, the hotel's net incomes alone can't cover the debt payments in the early years. The hope is that taxes and fees paid by hotel guests would cover that gap.

What's the risk to taxpayers?

That depends on the economy, the convention industry, bond markets and the travel business. Now you can see why the hotel makes politicians wilt.

What's the worst-case scenario?

Carol Samuels, senior vice president at Seattle Northwest Securities Corp., looked at that question for Metro.

That so-called shock scenario assumes the city sold bonds at 6.1 percent, the going rate for municipal bonds in the depths of the financial crisis. It also assumes the city's hotels suffered like San Francisco's after the Sept. 11, 2001, terrorist attacks.

In that case, the hotel's net operating income wouldn't be enough to cover the debt payments at any point in the life of the 30-year bonds.

In the hotel's third year, for example, the debt payment ($19 million) would be more than double the hotel's net income ($8 million).

The current financing proposal has a series of backstops to plug that $11 million gap. Those start with a tourism fund fueled by hotel and rental car taxes. The gap would be filled roughly in this order by the tourism fund:

1. Taxes generated by the convention center hotel.

2. A new fee surcharge created specifically at the convention center hotel.

3. Cash created by re-financing existing bonds used to expand the convention center and for the Portland Center for the Performing Arts.

4. Excess hotel and rental car tax revenues generated.

In this worst-case scenario, those backstops still wouldn't be enough. The proposal has still more backstops, none of them good. The ultimate backstops are the city's and Metro's general funds.

What's the best-case scenario?

Samuels also looked at a scenario that makes more positive assumptions based on recent history and hotel consultants' forecasts.

She used an interest rate of 4.6 percent that would have been offered in February 2007 and consultants' forecasts for growth generally in the tourism industry and specifically in the hotel's room rates and occupancy.

In that scenario, the hotel would nearly generate enough net income ($14 million) to cover the debt payment ($14.6 million) in the hotel's third year. Taxes and fees paid by hotel guests would generate enough to cover the $600,000 gap that year.

The only public money required to make the hotel work in this scenario is $4 million in taxes and fees paid by the hotel guests over the first seven years.

After seven years, the hotel's income alone is enough to pay the debt. The bonds would be paid off in 2041 and the project would have a $260 million reserve fund.

If the talks go on, what happens next?

The Metro Council likely will vote Thursday to extend the project beyond its current Dec. 19 deadline with hotel developers. From there, Adams wants to update a hotel feasibility study done before the recession. But most importantly, the city, Multnomah County and Metro must agree to change the tourism fund to provide the financial backstop. There's no promise that it won't take another 20 years.

Ryan Frank: 503-221-8519;
ryanfrank@news.oregonian.com;
blog.oregonlive.com/frontporch

http://www.oregonlive.com/business/index.ssf/2008/12/convention_center_hotels_futur.html

[PDX City-State]

I agree. He has no voice.

[Snowden352]

Not to be a contrarian, but I disagree. I think he's fine.

[tworivers]

Makes me yearn for the Randy Gragg days. The combination of his occasional Burnside Blog posts and the bi-monthly Spaces (the tone of which I would describe as "breezy") seems to have diluted his voice. At least from where I stand.

Less than two weeks ago, executives at Metro, the regional government, tried to kill the taxpayer-supported hotel.

Is that even accurate? I got the distinct impression that Park broke the "news" that the hotel was on its last legs to the media to spur some action among elected officials. In fact, in the follow-up article I read after Adams took up the fight, Park seemed elated that the project appeared to still be on the table. Frank should move over to the Tribune.

[zilfondel]

I think his article is refreshingly blunt. And exposes the harsh reality of the project... which, in this economic climate, I sadly say, should probably be put on indefinite hold until the city has a larger tax base and hotel market to sustain it without so much risk.

Perhaps we could do something creative with the land in the meantime. Hmm, maybe we could plant trees that could be harvested in the future and used for flooring in the new building. Or we could erect a wind turbine. Or plant community gardens. A farmer's market. Anything to help activate this dead spot!

Anyone know if the city currently collects this hotel tax that is being cited for the gap funding? Is it a new or existing one?

[PDX City-State]

Not to be a contrarian, but I disagree. I think he's fine.

To be frank (pun not necessarily intended), Ryan Frank does not see the big picture. He's constantly writing gloomy pieces and has been particularly hard on South Waterfront, and he fails to see outside the box. Many in Portland have been critical of him and of the prevailing attitude in Portland regarding development. There has been an attitude around town that South Waterfront is somehow a failure because of the temporary condo downturn. Many blame Frank for his incredibly narrow minded articles. What Mr. Frank and his lazy colleagues at the Oregon haven't seen is the enormous potential for job growth in that area. Luckily our incoming mayor and current governor are on board, and it's very likely that Vestas will land in South Waterfront. When Randy Gragg used to write his column, he advocated for these types of things. Right now, the Oregonian has no voice in the world of development. With the exception of A&E on Friday, I see no reason to even read that crappy paper.

The combination of his occasional Burnside Blog posts and the bi-monthly Spaces (the tone of which I would describe as "breezy"

Breezy? You must be talking about Brian Libby.

Unfortunately, no one is doing a very good job covering the development beat. Very sad.

[alexjon]

Raise your hand if you think Shiloh Inn will just build a 9 story there and call it done

[Joeplayer19]

now thats some affordable excellence lol

[tworivers]

So the Convention Center Hotel gets an extension
POSTED: 12:47 PM PST Friday, December 19, 2008
BY TYLER GRAF, DJC

The Convention Center hotel project has the support of Metro, which decided yesterday to extend the existing contract with the hotel's developers.

It wasn't too surprising, but it probably came as a relief to stakeholders like the Portland Development Commission. Metro Councilor Rod Park, for one, is a proponent of the project and talks, in lofty terms, about the 800 construction jobs the project will generate and the $100 million a year of (estimated!) economic benefit it will produce.

The decision doesn't change much, obviously. It doesn't mean the project will break ground this summer, or next summer for that matter. However, if the bond market corrects itself and the rates are really favorable, then a financing plan with available resources may be "conceivably identified."

That "conceivably identified" stuff isn't the strongest language in the world, methinks. But! At the very least it means the project is still on the horizon, so to speak.

[MarkDaMan]

Convention Center Hotel Task Force: "Go."
Posted by Matt Davis on Tue, Mar 24, 2009 at 4:28 PM
Portland Mercury | Blogtown

A task force convened by Mayor Sam Adams in mid February has recommended that Portland proceed with the building of a 600-room hotel next to the Oregon Convention Center.

Last December, Metro Regional Council extended its agreement with the hotel's development team until April 18, 2009, saying it was not sure whether it wanted to proceed to creating construction drawings for the hotel at a potential cost of approximately $5m, without assurances from the city and the county that it would get compensated for the outlay through hotel and rental car taxes—subject to an agreement with the city and county called a "visitor development initiative."

The Metro Regional Council was ready to vote on the deal last December, but Metro's Chief Operating Officer Mike Jordan was rumored to be prepared to recommend a "no" vote by Metro. Instead, Portland's mayor-to-be, at the time, Sam Adams, said he needed more time to work on the deal and that he would convene the task force to work out a way for the project to work, as soon as he took office. Metro's extension of the deadline until April granted the mayor's task force time to do its work.

"The task force recommends the currently proposed, 600-room Headquarters Hotel project proceed to the next phase as structured," reads a letter from the task force to Adams, dated March 9, and posted after the jump.

The task force recommends that Metro and PDC invest $12m in public resources for the next two design and engineering phases of the project, before the city of Portland sells bonds to fund the projected $247.5million cost of construction in 2010-11. The task force also wants additional opportunities for public input on the project before the bond sale.

Metro is still due to vote on April 18th over whether or not to proceed with the project. Former mayor Tom Potter had been opposed to the city funding the hotel, but Adams may now decide to take it over on behalf of the city before April, in which case he'd have to ultimately find a source for its cost.

March 9, 2009


The Honorable Sam Adams
Mayor of Portland
1221 SW 4th Avenue, Room 340
Portland, Oregon 97204

Re: Headquarters Hotel Independent Review Task Force

Dear Mayor:

The Task Force was convened February 18, 2009, to take a new, up-to-date and objective review of the currently proposed Oregon Convention Center (OCC) Headquarters Hotel with the charge to:
• Decide whether the proposed project is based on thorough analysis and reasonable, informed assumptions; and

• Provide the recommendation to proceed with the next phase of the currently proposed project which is to advance the architectural plans and budgets, as well as further explore the financing options over the next twelve months leading up to a final decision about whether to proceed with the project — or discontinue or alter the project.

The Task Force held three in-depth meetings to obtain briefings on the convention center industry, the hotel industry and specifically, the proposal for a Portland Headquarters Hotel. Agency staff and consultants presented the Task Force with detailed background information on the national and local convention market, the national and local hotel market, the national bond market, as well as the current project proposal, including a description of the business deal, the financial structure, the proposed Visitor Development Initiative amendments and the operating pro forma. The financial information analyzed reflected information from the private developer, the private hotel operator, and negotiations between the City, Metro and the Portland Development Commission (PDC). Invited guests included the development team and representatives of the hotel industry who had concerns about the project, both of which provided testimony. After the briefings, the Task Force deliberated and reached the following, unanimous*, conclusions.

• The Project proposal is based on thorough analysis and reasonable, informed assumptions.
Staff and the consultants they retained have reasonably and carefully analyzed the market, the financial feasibility and the choice of business partners for the proposed Headquarters Hotel. Task Force members do not agree with all details of each report and analysis, however, the same conclusions and level of confidence were reached by all*.



• The Task Force recommends the currently proposed, 600- room Headquarters Hotel project proceed to the next phase as structured, with the following understandings:

• If appropriate project approvals are ultimately provided by the affected government bodies (Metro, Multnomah County, City of Portland), Metro and PDC should proceed to invest up to $12M in public resources in the next two design and engineering phases to advance the plans and to obtain a guaranteed maximum price from the developer. This work will ready the project for a potential bond sale in 2010-11, assuming that project costs, the hotel market and the bond market result in a financially feasible project. The Task Force understands that there is currently built into the process performance requirements and decision points that determine potential off-ramps, or points at which the project can be cancelled prior to the commencement of construction or any contemplated bond sale.

The Task Force concurs with the project advocates and consultants, based on current market knowledge, that the decision to proceed with a 600-room hotel is reasonable.

• Prior to commencement of construction or approval of any bond sale for the project by the City of Portland, the Task Force recommended that the following should occur:

• A public opportunity to receive, review and comment on the details of the project’s financial assumptions, projections, and debt structure.

The Task Force believes it is important to obtain additional public and industry review of the pro forma and financial structure as part of an open and transparent decision-making process. Specifically, Metro and the City need to fully consider concerns that have been raised by some in the local Portland hotel business, about a) how public investment in a Headquarters Hotel could negatively impact other, privately-owned hotels in the market and b) to ensure that the project budgets and agreements are formed in the best interest of the public partners.

• Development of a holistic and implementable plan for public and private investment in the OCC area immediately adjacent to the Convention Center and the proposed hotel that incents projects that would directly enhance the ‘front door’ image and support increased business to the OCC and the immediate neighborhood.

The Task Force believes this is important in order for the City to fully plan for the success of the OCC, as a City and regional priority, in acknowledgement that Headquarters Hotel is important to the OCC’s business prospects, that alone is not likely to provide the full neighborhood impact that the district requires to become a vibrant 24/7 pedestrian active neighborhood. Additionally, the investment in the Headquarters Hotel will probably not be sufficient to incent private OCC area investment on the immediately surrounding blocks that most impact visitor experiences of the OCC. Thus, additional public investments should be considered.

• Development of a strategy to create opportunities to enhance the adjacent N/NE neighborhoods and aid their residents. This goal will be partially met through Minority/Women/Emerging Small Business and First Opportunity Target Area goals for the Headquarters Hotel project, but additional efforts are requested.

The Task Force believes this long-standing commitment to the community is important to honor and its implementation needs to be assured.

• Additional Task Force Recommendations

In a forthcoming public review and discussion of the project financial details, the following should be considered:

• Evaluate whether a larger project contingency is merited to provide additional cushion to the public partners thereby minimizing the potential need for further public investment in the project should the financial projections not be achieved.

• Identify a funding path that supports development of a Leadership in Energy and Environmental Design (LEED)-Platinum hotel, rather than the LEED-Silver currently proposed. Portland is the most sustainable City in the country and Oregon the most sustainable state and the Headquarters Hotel needs to reflect this community value.

• Ensure that the Visitor Development Fund has adequate funding to support both the marketing of the Oregon Convention Center and the Headquarters Hotel as well as the privately owned downtown hotel transient market. This will be especially important during the stabilization period of the Headquarters Hotel and is intended to minimize any negative impact on the existing hotel industry.

• The project’s public partners should undertake a transparent process to assure that the development and operating agreements include either enforceable restrictions and/or meaningful incentives to assure that the HQ hotel operator implements a room rate structure that, during slack periods, is not detrimental to room rates at other hotels in the marketplace.


I welcome the opportunity to discuss the Task Force’s findings in greater detail with you.

Sincerely,


Mark Edlen, Chair

cc: Task Force Members:
Steve Faulstick, General Manager, Portland DoubleTree Hotel / Travel Portland
Doug Obletz, President, Shiels Obletz Johnsen, Inc.
Judy O’Connor, President, Northwest Labor Council
Jan Robertson, Chief Financial Officer, Norris, Beggs & Simpson NW Ltd. Partnership
Dan Rogers, Associate Professor, School of Business Finance, Portland State University
Harvey Rogers, Partner, K & L Gates LLP
Carl Talton, Executive Chair, Portland Family of Funds Holding, Inc.
Rob Teach, Sr. Vice President, Oregon Commercial Division, U.S .Bank

*Task Force member Rob Teach was not present/did not vote at the Task Force final session on March 4, 2009.

[JordanL]

"The Honorable Mayor Adams"

:haha:

[MarkDaMan]

^usually that is how you address the mayor. Is that funny?

[PacificNW]

↑ Right on, Mark...

[JordanL]

^usually that is how you address the mayor. Is that funny?

No, what's funny is that we had the man of outstanding character running for Mayor. The guy that had vision and purpose.

And like a complete sleeze he bribed people to hide part of his past then waited till three days after he took office to say anything about it, and only then because someoen he couldn't bribe was snooping around.

Having sex is his own goddamn business. But lying, bribing, concieling and covering up are the public's business. There's nothing Honorable about those things.

I guess I still get a kick out of how duplicitous our politicians are, and how dumb and indoctrinated the voters are. I'm not apathetic enough yet...

Regardless, this is entirely off topic, and I probably shouldn't have made the comment to begin with, as it has nothing to do with the Hotel. Sorry.

[pdxtraveler]

So glad this project is still breathing. I really think it is necessary! I am still not holding my breath as I know a project like this will be hard in this economic environment.

And I hate I am letting myself be pulled in but.. Mayor Adams did not choose "three days after" the yellow journalists did.

[alexjon]

Ooooh, I forgot my embargo on this sorta thing.

[MarkDaMan]

bleh...the mayor is the mayor, no matter whether it is Adams, Potter, Katz or anyone else.

As the Honorable Mayor Adams (The Most Honorable Antonin Scalia, now THAT is funny!) is showing, he still has quite the impact in this fair city...when people aren't analyzing his sex life.

This area definitely needs this, if they had moved a bit faster, possibly it would have qualified for some shovel ready stimulus?

[65MAX]

No, what's funny is that we had the man of outstanding character running for Mayor. The guy that had vision and purpose.

And like a complete sleeze he bribed people to hide part of his past then waited till three days after he took office to say anything about it, and only then because someoen he couldn't bribe was snooping around.

Having sex is his own goddamn business. But lying, bribing, concieling and covering up are the public's business. There's nothing Honorable about those things.

I guess I still get a kick out of how duplicitous our politicians are, and how dumb and indoctrinated the voters are. I'm not apathetic enough yet...

Regardless, this is entirely off topic, and I probably shouldn't have made the comment to begin with, as it has nothing to do with the Hotel. Sorry.

What's funny is you say he's a man of outstanding character, with vision and purpose, and that his sex life is none of our god-damned business, yet you still feel the need to call him sleazy because he tried to keep his private life private from a bunch of reporters.

What's sleazy is the reporters trying to sensationalize a non-story by feeding on some people's homophobia.

[Snowden352]

SO... how about those Blazers? They KILLED Phoenix last night (Rudy's stuff at the end of the third quarter was pretty sweet). Just thought if there's going to be a tangent, it would be better to have it on something positive.

[RoseCtyRoks]

This is the design. The project isn't dead. Metro is probably going to move forward with it. Since none of the commissioners are now facing serious challengers for the upcoming election, they are a little more free to make the controversial decision of making this happen.

http://img87.imageshack.us/img87/9056/hotel3uz9.gif
http://images.google.com/imgres?imgurl=http://img87.imageshack.us/img87/9056/hotel3uz9.gif&imgrefurl=http://www.skyscrapercity.com/showthread.php%3Ft%3D399901&h=464&w=600&sz=140&hl=en&start=2&um=1&tbnid=lov5ilWTufKCYM:&tbnh=104&tbnw=135&prev=/images%3Fq%3DOregon%2BConvention%2BCenter%2Bhotel%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN

Mark, you called it allright....a year ago even. Seems to be alive and well, with Mayor Adams pushing for this. We'll see if it makes it through all the hoops, and becomes a reality, and a plus for Portland and the east side. I assume this is still the design they're going with tentatively?
( Thought we could use a pic bump, thanks )

[MarkDaMan]

Wednesday, April 8, 2009
Group expected to approve HQ hotel plan
Portland Business Journal

A controversial proposal to construct a 600-room hotel at the Oregon Convention Center moved one step forward this week.

The latest step in the 20-year effort to construct a luxury hotel at the convention center involves a recommendation to Portland Mayor Sam Adams. The mayor convened a committee called to evaluate the feasibility of plans to develop a Westin Hotel-flagged conference hotel adjacent the convention center.

The committee’s recommendation is widely expected to favor moving ahead with the project, which the mayor supports.

Mark Edlen, a prominent Portland developer, chaired the committee, which was scheduled to meet behind closed doors Wednesday to hear from a subcommittee charged with studying the project’s financial projections.

Although Metro is the lead agency on the project, the city of Portland will play a leading role in the hotel’s development, which depends on financial and other support from the Portland Development Commission. The city is also expected to lend its bonding authority to finance the $205-plus million undertaking.

The city’s decision on the project will help determine if Metro and its partners decide to spend approximately $12 million to have Zimmer Gunsul Frasca Architects LLP proceed with designs.

Metro’s contact with the development team of Garfield Traub Ashforth LLC currently is set to expire on April 17, 2009. However, the contract already has been extended twice and likely will be extended again. Officials say a decision probably won’t be made until June, at the earliest.

Supporters say the hotel is needed to complete the Oregon Convention Center, which can’t attract large gatherings if it can’t commit blocks of hotel rooms for convention goers. Without a headquarters hotel, the city will continue to lose convention business worth hundreds of millions of dollars to the local economy.

Critics accuse supporters of falling for shaky financial projections that have not significantly changed despite the recessionary pressure on hotel revenue and average daily room rates.

http://portland.bizjournals.com/portland/stories/2009/04/06/daily27.html?ed=2009-04-08&ana=e_du_pub

[Snowden352]

Ugh. Now, I'm pretty much an anti-government type, but in a downturn like this, it seems kind of disgusting to me to see money spent on a project that benefits so few, constuction companies and design companies, when that money could be used to benefit far more, if less glamorously.

Sorry for the grammar--kind of tired. Late in the term, and sleep's coming in smaller doses.

[pdxtraveler]

Ugh. Now, I'm pretty much an anti-government type, but in a downturn like this, it seems kind of disgusting to me to see money spent on a project that benefits so few, constuction companies and design companies, when that money could be used to benefit far more, if less glamorously.

Sorry for the grammar--kind of tired. Late in the term, and sleep's coming in smaller doses.


I really do try to see all sides of an issue. But I still can NOT understand the people who do not understand we need the convention hotel to utilize the convention center that is ALREADY there. This does not just benefit the few it brings millions and millions of dollars to the local economy. Wether or not the hotel is making a lot of money (hopefully it does) is not the issue. It is the amount of money it will attract to the city as a whole.

Besides as a corporate travel agent that has clients fly into town. I know these business people and conventioneers who come here end up returning on vacation with their families which is even more indirect money.

So while I really am trying to sympathize with your opinion (which you are totally intitled to), I just can't understand at all.

[cab]

Construction development like this is one area that trickle down actually works. This will add a lot of jobs short term and can really be the catalyst for a lot of new work in the lloyd district and rose garden area. Just think this could be built and finished right when the Blazers are pushing for NBA championships. The amount of energy in that area will be incredible high and hopefully a critical mass of development can then follow to make that area a fully functioning part of the city.

[zilfondel]

and, by the time it opens, the economy should be back on track. win/win

[WestCoast]

this is a slam dunk, build it green and build it now, bring in those out of towners and their vacation business dollars.

Lord knows we could use it.

[sowat]

Mayor to push ahead on convention center hotel
by Ryan Frank, The Oregonian
Wednesday April 15, 2009, 12:07 PM

http://www.oregonlive.com/news/index.ssf/2009/04/mayor_to_push_ahead_on_convent.html

http://img172.imageshack.us/img172/5578/largeconvctrhotel.jpg
Zimmer Gunsul Frasca Architects LLP
This rendering shows what the proposed convention center hotel would look like on land across Martin Luther King Boulevard from the Oregon Convention Center. Developers Ashforth Pacific and Garfield Traub have proposed this design.

A private task force convened by Portland Mayor Sam Adams has recommended the city spend up to $12 million more to pursue a 600-room, government-owned hotel next to the Oregon Convention Center.

Adams said today that he'll use the recommendation to re-start talks with the rest of the City Council, Multnomah County and Metro, the regional government, about financing the hotel that's estimated to cost more than $200 million.

City leaders have planned for such a hotel since 1989. Supporters say a hotel would draw more and bigger conventions to town and spur new spending at restaurants and shops.

The current proposal calls for the city to pay for the hotel's construction by selling bonds. That debt would be repaid by the hotel's revenues.

But the project requires a sizable financial cushion in case the city's projections fall short.

To provide that cushion, Adams must win support from leaders at the county and Metro -- both of whom have been skeptical -- to use hotel and motel tax revenues.

Metro nearly killed the hotel plans late last year over concerns about the worldwide financial crisis.

Developer Mark Edlen led the task force that included hotel, real estate, finance and labor leaders. In its letter to Adams, the task force said the city should make sure the public can review the hotel's worst-case scenario projections, should boost financial reserves in case the hotel fails and should revitalize blocks surrounding the hotel to improve the visit for out-of-towners.

If Adams can win support from the county and Metro, the public agencies would pay up to $12 million over the next year for detailed construction drawings. Most of that money would go the architect, Zimmer Gunsul Frasca Architects of Portland.

-- Ryan Frank

[Tykendo]

Some of the greatest projects come out of the worst of times. I think this is a good time to get this built so the Convention Center can fulfill it's potential. Portland is a gorgeous city and would be smart to exploit that fact. What better way than have large gatherings of people visit and see that the pictures are real. But one thing! Please get a better design than that awful thing. That's the best they can do? Pathetic. that looks like some 60's Vegas strip design. Add some pazazz please.

[pdxtraveler]

Looks like we will be losing convention business to Tuscon as well now. We need to get moving!


On the Boards: Tuscon headquarters hotel
DLR Group designs 525-room hotel to compliment the Tucson Convention Center
POSTED: 04:00 AM PDT Monday, July 13, 2009
BY NATHALIE WEINSTEIN

The city of Tucson, Ariz., is moving forward with plans to build a 525-room headquarters hotel near its convention center. Designed by DLR Group, the 25-story, $167 million hotel has been designed to reflect natural desert elements.


“During the public hearings for the hotel, residents said they wanted to make the project authentic to Tucson,” DLR Group design leader Gary Worthy said. “The design intent is to draw inspiration from the surrounding desert, by incorporating the essence of the desert: rock, water and light.”

Located in the Sonoran desert, Tucson is surrounded by five mountain ranges, which will be reflected in the design of the hotel’s south facade by using multicolored concrete made to resemble layers of rock. The building’s north facade will be made of multicolored glass, which will reflect the area’s abundant sunshine.

“The mountains around Tucson are very pronounced,” Worthy said. “The quality of light and the color of the sky from morning to sunset and after dusk is magnificent.”

The hotel’s interior will be designed by Kay Lang Associates of Los Angeles, and will include a bar, lobby, lounge, spa and fitness center, café, outdoor pool deck, business center, and 36,000 square feet of meeting and ballroom space. In addition to the hotel, the project also includes a 55,000-square-foot exhibit hall and meeting space expansion to the existing Tucson Convention Center. A courtyard featuring native plants will be constructed between the hotel and convention center. By using local and recycled materials and minimizing energy use, developers plan to register the building with the U.S. Green Building Council in pursuit of Leadership in Energy and Environmental Design silver certification.

Construction is expected to begin later this year, and the hotel is anticipated to open in 2012. Project partners include developer Garfield Traub, and general contractors Turner Construction and Sundt Construction. Sheraton, Starwood Hotels and Resorts will operate the hotel upon its completion.

http://www.djcoregon.com/articleDetail.htm/2009/07/13/On-the-Boards-Tuscon-headquarters-hotel-DLR-Group-designs-525room-hotel-to-compliment-the-Tucson-Con

[Tykendo]

Totally agree Traveler. Portland needs to stop mickey mousing around and get it built. Conventions are passing Portland by and it truly is a crying shame. Portland needs more movers and shakers and less humha-ers.

[Snowden352]

I'm not sure that having a big enough hotel will attract more conventions to Tuscan. I get the impression that conventions are as much about getting as many convention goers to attend as getting the convention. In that way, glitzy Las Vegas and whatever other lead convention leading towns will always beat Tuscan (which I'm sure is lovely in its own right) and Portland (which is always lovely, rain or shine).
Still think the money that would be spent on a convention hotel would be better spent on other, more worthy projects.

[MightyAlweg]

Totally agree Traveler. Portland needs to stop mickey mousing around and get it built. Conventions are passing Portland by and it truly is a crying shame.

Actually, Mickey Mouse already has the largest and snazziest convention center on the West Coast, the lavish Anaheim Convention Center with two (2) major headquarter hotels attached to it. http://www.anaheimconventioncenter.com

And just across the street are 2,500 additional rooms at the three Disney hotels, plus a large conference center at the Disneyland Hotel, owned and operated by Mickey. :haha:

But I agree, Portland needs to at least get a 500 room headquarters hotel within a block or two of the convention center. It really prevents them from snagging the mid-sized stuff, let alone the big stuff.

[Okstate]

^ I knew you'd bite at that one :)