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Tucson, Ariz., Gets Closer to CC Hotel

Staff -- Tradeshow Week, 7/16/2007

Tucson, Ariz., moved one step closer to a new downtown hotel by approving five of seven developers who submitted qualifications and proposals for the project.

The hotel is part of a recently approved plan by the city to spend $190 million to add 40,000 square feet of exhibit space, 35,000 sq. ft. of meeting space and a new 12,500-seat arena to the existing Tucson Convention Center.

Jaret Barr, assistant to City Manager Mike Hein, said the two developers eliminated were Bourn Partners, which didn't include a hotel in its proposal, and Gaylord Entertainment, which specializes in all-inclusive convention and hotel resorts.

By Sept. 7 the city will receive detailed plans in bids from the qualified developers:

  • Hensell Phelps proposed redevelopment of Hotel Arizona, an existing hotel in downtown Tucson, including expanding the hotel to more than 700 rooms.
  • Allan Norville, a downtown landowner, with Marriott and Chris Ansley, a developer of another Marriott hotel in Tucson, proposed developing publicly owned land and some of Norville's for a hotel along with offices, restaurants, parking, retail and a gem museum.
  • Southwest Value Partners, a real estate investment firm owned by Phoenix Suns owner Robert Sarver, and General Growth Properties proposed a hotel from the Intercontinental Hotels chain, which owns Holiday Inn and Crowne Plaza.
  • Garfield Traub Development of Dallas proposed a Sheraton.
  • FaulknerUSA of Austin, Texas, proposed a hotel operated by Hyatt.

The number of rooms, brand, cost and construction schedule "are all going to be factors," Barr said. The city will likely choose a developer by October.

Tucson also added a provision that the hotel would not take any economic action in the future against hotel workers if a union organizes labor. Barr said Tucson officials toured other cities, including Houston, and heard about the issues those cities had with labor when hotels were built on public land.

"This was something (those officials) recommended (Tucson) do," Barr added. The majority of Tucson's hotels are not unionized.

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