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Hammons offers hotel, help with convention center

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By DEENA WINTER / Lincoln Journal Star

Thursday, Apr 10, 2008 - 12:08:14 am CDT

“Hammons Airlines” landed  in Lincoln this week, but this time John Q. wasn’t jetting in for a football game or to check on his downtown Embassy Suites hotel.

Hammons flew in to make a pitch to a city selection committee on why John Q. Hammons Hotels & Resorts is best suited to build a convention hotel if the city builds a new arena near the Haymarket.

Hammons is one of two finalists to develop a convention hotel if voters approve an arena. He’s competing with a team led by Lincoln developers Will and Robert Scott.  

Story Photo
The West Haymarket District. (Courtesy Photo)
The Hammons pitch

John Q. Hammons Hotels & Resorts is one of two firms in the running to build a convention center and hotel near a proposed city arena. (No details are available on the proposal by the Scott brothers of Lincoln.)

Here are details of the Hammons pitch:

* 250- to 325-room, four-diamond hotel. Hammons would pay for hotel.

* Up to 60,000-square-foot convention center. The company would share costs with city.

What’s next: City selection committee will report to mayor, possibly within the next week.

They were selected from five development teams that put in proposals last month.

The selection committee’s meetings are closed to the public, and until now, neither Hammons, the Scotts nor the city has released details of the proposals. The Scotts did not return a call seeking comment last week or Wednesday, but a Hammons official agreed Tuesday to talk about his company’s proposal.

Scott Tarwater, executive vice president of development for John Q. Hammons Hotels, said he, Hammons and another executive flew in for the Lincoln meeting.

They offered to build a 250- to 325-room, four-diamond hotel with an up to 60,000-square-foot conference center.

Hammons proposed to finance construction of the hotel — preferably with a good deal on the land — and jointly finance the convention center.

“Mr. Hammons has no problem funding that project,” Tarwater said. “We have $565 million worth of new projects coming out of the ground and $1.5 billion in the pipeline … Financing is certainly the least of our challenges.”

Hammons did not specify how much of the convention center the company would be willing to finance.

“That would be up to the city to determine,” Tarwater said. “If they want us to come back and get more specific, we would love to do that.”

Last month, a Minnesota consultant concluded it would be financially feasible for Lincoln to build a new arena. It also recommended the city work with a developer to build a 30,000-square-foot convention center and a hotel with at least 250 rooms.

City officials have previously envisioned a convention center with up to 60,000 square feet.

Tarwater said the size of Hammons’ proposed hotel and convention center are based on the company’s market research.

“We do our own homework,” he said. “Mr. Hammons has done this over 200 times now and we pretty well got it down.”

He didn’t release details on the design of the hotel, but said all of their hotels are custom-designed. And the company likes to match the hotel with the surrounding architecture — such as the company’s Embassy Suites in Omaha’s Old Market.

City officials have zeroed in on preferred siting for the arena and convention hotel, but have often said a private partner might have other ideas about where things should be built.

Hammons hasn’t specified a preferred location, Tarwater said: That would be determined once Hammons gets more definitive building footprints from Lincoln officials.

The Scotts would seem to have their work cut out for them in taking on what Tarwater calls “the hotelier of the world.”

But the Scotts’ plans are reportedly innovative and they’ve teamed up with respectable national partners, including Kansas City architects from Ellerbe Becket who designed that city’s new arena, the Sprint Center.

Hammons is the nation’s largest independent developer of upscale hotels and resorts. He started the company with 10 Holiday Inn hotels in 1958 and has since developed about 200 hotels. 

He often builds near capitols, universities, airports, corporate headquarters or office parks.

And he’s an avid Husker football fan, often jetting in for games.

“He really likes Coach Osborne,” Tarwater said.

So would Hammons be interested in ponying up money for the naming rights to a new arena?

“You never know,” Tarwater said.

Hammons built a baseball arena, Hammons Field, in downtown Springfield — home to the Springfield Cardinals. And he committed $30 million to his alma mater, Missouri State University, for the $67 million JQH Arena scheduled to open this fall.

Hammons is 89, but still flies all over the country — sometimes hitting four or five cities in a day.

“It takes me (going) a thousand miles an hour with my hair on fire to keep up with him,” Tarwater said of his boss.

Urban Development Director David Landis said the selection committee will likely share its preferences with the mayor within a week. Then it’s up to the mayor to choose a developer — and then negotiations begin on a redevelopment agreement.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.


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Tim wrote on April 10, 2008 1:07 am:
" Why would we want an out-of-state billionaire with no clear idea (hasn't selected a site yet) of his plan to develop the biggest project for Lincoln in years? Doesn't it make more sense to select a local-led development team who knows Lincoln, has done some great projects in the Haymarket and teamed up with a designer like Ellerbe Becket for this project? "

Bob wrote on April 10, 2008 1:19 am:
" Mr. Hammons is a very impressive guy. I didn't know he came to Husker games. Very interesting. "

mark wrote on April 10, 2008 7:07 am:
" thank you JQH! "

I'll tell you why wrote on April 10, 2008 8:30 am:
" we should listen to Mr. Hammon's proposals. It's because
he's the only one with his checkbook out! Do you believe that the Scotts's and Lincoln developers are willing to use "their" money for "their" investment?
"

Hey wrote on April 10, 2008 9:02 am:
" At least you would get a missouri developer who knows how to do it. He has just announced a new hotel at the new branson airport. This man has the financial support necessary to do a project and get it done on time. He isn't like some of those so called developers who run into financial trouble about halfway through the project. But, knowing lincoln like I do they will hire someone who is a good ole home town boy to do the work and about halfway through it he will ask the city for money to finish. "

john wrote on April 10, 2008 9:11 am:
" Seems to me that the City is putting the cart before the horse. The arena has yet to be approved and the land secured. "

KE wrote on April 10, 2008 9:15 am:
" As long as he builds something that is more cohesive to the urban environment presently and in the future than say his ugly Embassy building then I won't complain about him. I think his both his heart/mind are in the right place, but he really needs to hire some new urban designers for his developement teams. "

N/A wrote on April 10, 2008 9:25 am:
" JQH is the best hotelier in the business no one in this city or town could do it better than him. He already knows the area because he owns 3 hotels in Omaha and 1 in Lincoln. I would be an honor for him to build this for us. "

Hold it wrote on April 10, 2008 9:38 am:
" I am not sure that I agree with everything being tossed around here. Looks like some of this is just plain taking advantage of situations. This whole idea of an arena in the Haymarket is a little bit leaning and gives one pause to think that maybe there are other reasons for this push to develop in this area.
I for one will not go near this area because of the massive congestion of traffic, getting in and out is like going through a maize and the parking, although guite available in some of the garages, is not always where you would like it to be and I can not even begin to sense what would happen if 10,000 more vehicles were to have a need to park in the area. Looks like the only benefit to the area would be in the building portion of the project and not necessarily in the final using portion. Now that the State fair has been slated to move to Grand Island, Lincoln will end up with very little summer activity other than a few baseball games and possible some early football, of course Lincoln will have a few more years until the fair is officially moved.
The UNL Research park will not be in operation for at least 5 years and so it appears that construction people will have a large amount of business until both are completed and the antelope valley project is completed. However, I do not see any real pressing need for any of it at this time because of the sagging economy and the higher predictions of inflation, and loss of jobs to the real economy.
One can create a false economy for only so long of a time and then reality will hit and the whole idea could just sit there. When the money runs out then what. "

B Evans wrote on April 10, 2008 9:59 am:
" The Scott's are invested in Lincoln's future. Look at their properties and you know that they are in it for the long haul. They are trying to help in the development of a retail corridor downtown. Their projects have been innovative. They are responsible investors in our community who have chosen to grow not only their business here but also their families.

Mr. Hammons enjoys to make a profit here. But his income tax isn't paid in Nebraska, he doesn't live here, and this is not where he chose to have his family. That's fine, that's business, I would just prefer that any of my tax dollars go to support people who have a vested interest in our community.

Just because an out of state investor wants to throw money at a project is no reason not to make the investment in our own people. The Scott's are on Lincoln's team, Hammons is on his own team. "

We'll see wrote on April 10, 2008 10:01 am:
" I'd love to see this project go to a local developer, but people become quite easily impressed with Mr. Hammons and his large sums of money. Keep in mind however the study that was done did say the Arena could be built without Lincoln needing to put in a large Hotel & Convention Center. The convention center will not bring in the number of events we're all hoping, maybe a dozen large events a year. That's an increase, but it's likely the city will be subsidizing something, somehow! Don't go into this with blinders on or false information. I wish the best of luck in leading Lincoln into the future! "

Mike in DC wrote on April 10, 2008 11:03 am:
" You can argue the Arena, but not a Hotel/Conf center. A dozen large events? Plus 7 football games, Arena events, and UNL-sponsored conferences. I've been to places like Niagara Falls for conferences, and they sucked, not because of the facility, but because of the location--there's nothing outside the small tourist zone and it all shuts down before dinner. Anywhere in downtown, let alone the Haymarket is a great place, although I still prefer east downtown, in the area where Pershing is. It provides better access, and would still have a quorum of people to drive new services in addition to those already in Haymarket, and still plenty close enough to Husker and UNL activities. It's not like the hotel isn't going to run a shuttle to the airport, there's no reason they couldn't use the same infrastructure to run people to the stadium, Haymarket, et al. The issue is not auto access. The reason I'm constantly in San Antonio is you don't need a car for a convention, and it's why so many small-med sized meetings are there; shopping, food, entertainment is all easy walking distance from all the major conf centers, hotels, and the arena. And despite it's stats, SA is not a city with much economic value. And the project would be a cornerstone to the AVP. The idea is spectacular, but with the triad you'd create (UNL-Haymarket-ConvC/Arena) it makes much more sense to not make the Haymarket claustrophobic. "

Jason wrote on April 10, 2008 11:41 am:
" To those so bent on keeping it 'local,' well we've been doing that for decades (monopoloy movie theaters, the joke of downtown, no closed-in malls, the decrepit Pershing Center, etc.). And you know what, they've all sold out or let it rot. Wanna grow up and get business from outside? Then you have to go outside. It's time we grow up and realize there's more out there than what ends at the local golf courses. "

Springfield Husker wrote on April 10, 2008 11:48 am:
" Up until a few years ago, we lived in Lincoln and then moved to Springfield MO, home of JQH. It's very impressive to hear and know everything that he has done for the Ozarks, especially in downtown Springfield where he has revitalized much of it. And know his presence in the Haymarket will only make it better. Don't shove away his dollar too quickly. "

Dominos wrote on April 10, 2008 11:51 am:
" The first dominos has fallen..ridding Lincoln of the state fair sets in motion he removal of the Devaney Center and the Ice Box so now we have to build an arena and new hockey rink.The city will cry "we HAVE to build them now".Of the many problems I see with this entire process the biggest is the lack of information we the taxpayers are getting.The developer from Dallas in a previous artical was dumbfounded in the secrecey that surrounds this process.We have no idea what the cost of relocating the rail line will be,we have no idea what the cost of cleaning up the rail yard will be.We have no idea how much our property taxs will be increased to pay for this will be.We have no idea what will be done with a Pershing Center that is costing a million dollars a year to keep open now.Will it be demolished or will we continue to keep it open at an escalating cost?
We have no idea how the city will move people into and out of this area.Given the lack of a freeway system how does the city propose to move 90,000 people into downtown Lincoln for a night foootball game and another 15,000 for a concert, add in another 7,000 for a Stars game,not to mention appeasing the North Bottoms neighborhood association? With a trolly car that consumes a lane of traffic that runs 3 blocks??? PLEASE!
Before we unleash the dogs of another downtown boondoogle I would think that a more open process needs to happen and more questions need to be answered.
It matters not who gets the development and if you are wondering then look at how the Verizon project was handled and that will tell you how this one will turn out.For those that believe that a vote will happen...remember and I quote J.Stalin "It doesn't matter who votes,it doesn't matter how often they vote.What matters is who counts the votes"
"

Chris wrote on April 10, 2008 12:13 pm:
" With Pershing ailing, Lied ailing, Rococo generating a few shows, Devany sitting there, Quest in Omaha (with more population I might add) one has to ask, "Do we really need this?"

Should this project advance, I think it's healthy for WRK and Hammons to compete. Personally, I favor the local team. The Scott brothers' projects are economically sound, environmentally sound and culturally creative. We should try to keep the project locally owned and sustainable.

I'd also like to add that renovations or smaller projects might be better served, especially with UNL's research park now on the horizon. The downtown police station is hideous and the library could use some help. Perhaps we could refurbish Pershing as a sweet new library? "

Private Money wrote on April 10, 2008 12:14 pm:
" A-OK with me! "

Western NE wrote on April 10, 2008 12:23 pm:
" Having worked for Mr. Hammons in several of his high quality hotels in the past, I can ABSOLUTELY vouch for his compassion and caring attitude. This is a man that truly cares about his employees (always did under my watch), kept his word, and was honest almost to a fault. No spin here - he only speaks to what he can do - then does it. I don't know the other developers, but I can attest to the character of this man. His team is built around his principles and character.

Attending Husker games? Absolutely, he didn't miss them when he could be in town. The man loves sports -- that's why he built the Missouri Sports Hall of Fame.

Give him a chance -- he's not your typical businessman. You don't see many giving millions of dollars to charity every year, and some of that makes its way back to NE. "

Look at the % wrote on April 10, 2008 12:34 pm:
" of the hotels that are not filled at capacity. We have plenty right now and we need to keep supporting them.
Yes, there was a day when we did not have enough rooms during state tournment time, but all that has changed.
"

Sam wrote on April 10, 2008 12:46 pm:
" When we visit Lincoln, there are not enough quality rooms available during certain periods. A hotel of this magnitude would do well. When it comes to hotel rooms, Lincoln isn't overbuilt - its underdemolished. "

Joe wrote on April 10, 2008 2:33 pm:
" It's time that our city takes care of what it currently has (i.e. sidewalks, parks, roads, Pershing, infrastructure) instead of spending millions on studies, new arenas and other projects such as these. It amazes me that our leaders say we're broke yet they encourage us to support these endeavors. And they seem anxious to find money to support these types of expenditures.

And as another commentor pointed out we already have high enough vacancy rates in the downtown hotels we currently have so why build more?

Many feel that we should strive to become more competetive with and more like Omaha? Why?

It is time for our citizens to realize that a bigger city is not necessarily a good thing. Quality growth can be a positive thing. But growth for the sake of becoming a bigger city is not good and does not necessarily translate into being beneficial for our community. "

bevans wrote on April 10, 2008 2:49 pm:
" Win-win! I still would prefer to see the people who have their families in the community win the bid. "

mitchy_v wrote on April 10, 2008 3:07 pm:
" Lincoln has too many hotels/motels that you need a tetnus shot after leaving. "

Hey Lincoln wrote on April 10, 2008 3:43 pm:
" I didn't know the convention center, hotel, arena had been voted for yet. I guess it ain't gonna happen, the vote I mean. Get hold of yor pocketbooks as you are fixin to get taken agin. "

DR wrote on April 10, 2008 3:54 pm:
" OK. So the Embassy suites we have now in Lincoln. Has anybody driven down Q street between 11th and 10th. This is the street that is supposed to be one of their "P & Q" corridor. It's a wall. That's it, no retail first level, other stuff above. It's just a wall, no windows even. Come on now. Hammons is too much of a wheeler and dealer. He wouldn't put in Embassy unless P was two ways in front of his hotel. I don't want the city to work with a guy who says "my way or the highway." "

Huh? wrote on April 10, 2008 4:05 pm:
" Did you get to vote on the last hotel that was built? Or the one before that? Where do people come up with this stuff? Sorry, fortunately a group of LEADERS has decided to take the bull by the horns and actually make some progress here. It's not 1958 anymore. "

Taxpayer wrote on April 10, 2008 11:26 pm:
" I don't get it. First of all, some of you think that the JQH proposed convention center is the "new arena". Second, why wouldn't the developer be responsible for funding this? Does the city fund other new businesses when they come to town like new resturants, manufacuring facilities, car lots, motels, gas stations, furniture srores, etc? "

T4acres wrote on April 11, 2008 11:56 pm:
" Unless the Scott's are also prepared to finance the project in a manner similar to JQH, this should be a no-brainer. JQH isn't a thief in the night, they're already firmly invested here - enough to make them "local interests" as well. Just maybe not fellow country club members. "