Gaylord Gives Chula Vista Another Shot

Gaylord Entertainment has reopened negotiations with officials from the city of Chula Vista, Calif., and the Port of San Diego on a $1 billion hotel-convention center bayfront project after saying the deal was off more than a month ago.

The company made its overture in the form of an Aug. 2 letter from Bennett Westbrook, senior vice president for development, design and construction, to Bruce Hollingsworth, president and CEO of the Port of San Diego. The letter stated: "As a result of the overwhelming show of community support for Gaylord's inclusion within the Chula Vista Bayfront project, Gaylord hereby requests to continue discussions with the Port regarding the same."

Denny Stone, Chula Vista's economic development officer, said of Gaylord's decision, "We're thrilled, and we're optimistic that this will move forward."

Talks stalled when Gaylord failed to reach an agreement with local construction labor unions, but this time around, labor won't be in the discussions, according to Irene McCormack, Port of San Diego communications director.

"The labor situation has not changed," she said. "We're not negotiating with labor unions at this time."

A sticking point between Gaylord and the unions was the unions' request for local labor to be used on the project. While Gaylord said it would hire local labor, it did not agree with what it deemed to be a restrictive bidding process that would favor the unions.

Stone defended the company and criticized the unions in a June 29 written update to the city: "Although Gaylord has already agreed to the framework for ensuring the hiring of local workers, the labor organizations' representatives continue to insist this is an unresolved issue. Throughout the discussions, Gaylord has agreed to pay workers wages comparable to union hourly wages."

Tom Lemmon, business manager for the San Diego Building Trades Council, did not return a call for comment by press time.

McCormack said, "We could move forward on the project without the labor unions."

The port is waiting for an Environmental Impact Report to be completed for the entire bayfront. McCormack said the report would cover 500 acres around Gaylord's planned 35- to 40-acre development. When regulatory commissions (such as the Environmental Protection Agency) are involved in a project, she added, the port typically likes the unions to be on board.

Local press reports said the unions had threatened to block the project with litigation and bad publicity related to environmental issues.

Plans for the hotel-convention center call for a 2 million square foot property that will include 400,000 sq. ft. of exhibit and meeting space and a 1,500-room hotel. According to estimates, the project could create more than 6,000 construction jobs and 2,000 hotel jobs. UNITE HERE Local 30, which would represent hotel workers, reached a labor agreement with Gaylord several months ago.

Now that the talks have resumed, Stone said, "This process was on pause for a month now and we're spinning back up. I think there's a lot to be done, but I'm really encouraged."