2 finalists selected for arena project
digg it!
Facebook
del.icio.us
Seed Newsvine
Fark It
Reddit
BY DEENA WINTER / Lincoln Journal Star
And then there were two.
The field of five development teams vying for a piece of Lincoln’s proposed arena project has been narrowed to Missouri hotel magnate John Q. Hammons and a team led by local real estate developers Robert and Will Scott.
Assistant Planning Director Kent Morgan confirmed that John Q. Hammons Industries and a development team led by the Scott brothers are finalists to develop a hotel and convention center that would accompany a new arena — if voters approve one next year — on a site west of the downtown post office.
Morgan said the city had hoped a private developer would be interested in financing a portion of the arena, but none were. So, the arena would be publicly financed, and the hotel and convention center would be public-private ventures.
The Scotts made a presentation to the city’s selection team on Thursday.
Scott Tarwater, senior vice president of development for John Q. Hammons Industries, said his company’s representatives were supposed to make their presentation Thursday afternoon as well, but thunderstorms prevented their flight from leaving St. Louis. They’ll likely reschedule for next week.
Neither Hammons nor the Scotts have divulged details about their proposals, and city officials have declined to release details about any of the five proposals they received in mid-February.
Twin brothers Will and Robert Scott of WRK LLC increasingly have become major real estate developers in the past half-dozen years, particularly in downtown Lincoln. They’ve bought and developed a number of properties downtown, including a Noodles & Company restaurant. They’re working to develop an arts and humanities block in the Haymarket that is already home to several tenants, including the Bread & Cup restaurant.
They also have teamed up with Kansas City architectural firm Ellerbe Becket and International Facilities Group of Chicago. The Scotts could not be reached for comment Thursday.
Rick Kiolbasa, principal with Dial Realty of Omaha, said he was told a couple of weeks ago that his development team was not a finalist. Dial had partnered with Global Entertainment Corp., a Phoenix company that specializes in arenas in mid-size communities and operates the Central Hockey League.
Dial and Global had proposed developing a public arena with private entertainment and dining nearby.
“We aren’t involved in it at this point in time, although we’re not permanently out of it,” Kiolbasa said. “We’d be interested in pursuing the arena later.”
A Kansas real estate development company called Harpool Morgan Haney was also on the Dial/Global team. President Jim Harpool said Lincoln preferred a larger arena than Global thought the market could handle.
Global recommended a maximum of about 7,000 seats, but Lincoln officials are eyeing as many as 16,000, if the University of Nebraska uses the arena for basketball games. That difference of opinion over the right arena size, “might have had something to do with” his team’s rejection, Harpool said.
“Nobody likes to think of themselves as a secondary market, but that’s what most of us are in the Midwest,” he said.
Garfield Traub Development of Dallas, another development team with experience in the arena business, got the rejection call a couple of weeks ago.
“We were a little surprised,” said Greg Garfield, a principal with the company.
Garfield Traub proposed to manage development of a 15,000-seat arena, 400-room Sheraton Hotel, convention center and parking garage. The company has developed more than 40 hotels and has nearly $200 million worth of sports and entertainment venues under development.
“We do this all over the country every day,” Garfield said.
He said it appeared the two finalists offered more private financing, but he was dubious about how realistic those proposals may be.
“We’re very forthright about the amount of public support that’s needed to get these done,” he said. “We’re very confident that what we presented was realistic. Anybody proposing to build a comparably designed project is going to require a similar level of public support.”
Morgan said the city obviously is looking for the best deal for taxpayers’ buck.
“Clearly we were looking at the amount of equity they’ll bring,” he said.
The selection committee hopes to recommend a developer to Mayor Chris Beutler by month’s end. Once the mayor selects a firm, negotiations on a redevelopment agreement begin.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
Post Your Comment
Standards and RulesYour posted comment will appear after it has been approved.
Frequently asked questions about story commenting.
I hope that the city selects the local team, they at least know lincoln! "
I can understand the need for a hotel and convention center, but another arena built by public funds doesn't sound like a great idea right now given the current and near future economic climate. In a year from now less and less people are going to be spending $ on entertainment as the rising costs of gas, food, loans, heat, electricity - you know, basic needs in life - eat away at our disposable incomes.
I seriously doubt entertainment acts haven't been booking in Lincoln because of a lack of a new arena. I would suspect it is because they know they can draw a larger crowd for more money in Omaha and then move on to another state or region.
Face it folks, Omaha and Lincoln are the SAME MARKET! "
On a relative note, shouldn't Pershing be transformed into a more appealing downtown library or some other public venue? And what about the police station? What a hideous building.
These projects may seem expensive, but letting downtown deteriorate will be more costly in the long run.
Perhaps our leaders can come up with some creative solutions for fund raising. Personally, I like sales tax. At least I have some control over the things I buy.
The Lincoln Cares method of asking for $1 donations on our electric bill is okay although I think they should put the money towards clean energy over parks (or in addition to parks).
Maybe we could have the option to donate on our cable bills. Entertainment donation for entertainment center... "
& 16,000 if UNL moves games. Can you say bye-bye Devaney? "
the own pockets. You noticed no one wants to finance the
thing. What does that tell you???? The citizens are getting run over by the biggest freight train they'll ever see!! And non have the guts to stand up and say,
enough taxes already!! The citizens don't get to vote,
didn't you read the sign, "SHUT UP AND PAY". You can bet
if developers thought this was a good financial paying
deal, they would finance it. People aren't just going to
drive to Lincoln and pay exhorbant prices like Lincoln
charges everywhere for a one time thing at the arena or
convention center. They're going to Omaha where there is
decent shopping, and the casions that are getting more
and more packed and are building even bigger gambling
space. When the Lied center isn't even filled for
events, wouldn't that tell you something?! The downtown
has already gone down the drain, whats there to come to
Lincoln for?? NOTHING!! Any more tax and I'm outta here!
Two neighbors have their houses for sale now because
they say they can't afford this town any more, and
haven't even been able to sell them. Several others
have their houses for sale and even reduced their prices!
This damn bunch isn't going to be happy until they
destroy the rest of the town!! "
This is how the guy operates and always has been, remember when he wanted the city to make P St a 2-way street in front of his Embassy Suites? Helikes going to small college towns like ours where he can be a big fish in a small pond and having all the city officials dance for him. Tell him to take a hike, Lincoln. If he wants an arena here let him pay for it himself, he's only worth $20 Billion "
think the new O bridge is for. Yeah, some more of their
lies that the Lincoln citizens swallowed! Sure they'll
reward Hammonds with all the citizens bank accounts. Thats the way Lincoln operates, they could care less
about anybody but themselves and their riches!!!!! You
know, all the lovely 48th & O and all that area to
Univ Place, guess who saw that thru & that benefits???? "