‘We Do Like The Concept’
City Manager Believes Conference Center Idea Worth A Closer Look
Posted: January 5, 2013
HARRISONBURG — While wary about finances, City Manager Kurt Hodgen recommends that City Council at least request further details on a developer’s $40 million proposal to build a hotel and conference center downtown.
In September, Harrisonburg Economic Development Director Brian Shull presented an unsolicited proposal from dpM Partners of Gaithersburg, Md., that called for $9.5 million in public funding for the project.
Because the firm’s approach to the city was an unsolicited one, made through the Public-Private Education Facilities and Infrastructure Act, competing bids were sought.
The act encourages the public and private sectors to join forces on economically viable projects, such as civic centers and schools, that would benefit investors and taxpayers. No competing bids were submitted to the city ahead of a November deadline.
In a memo to council members Thursday, Hodgen explains what actions they can now take.
Their choices are simple: ditch the idea or proceed to a “detailed stage,” which requires dpM to submit 12 specific items of information, including a comprehensive financial analysis.
Hodgen recommends seeking the details, noting that it would cost the city nothing, requiring only staff time to review the information.
“While staff does have concerns about the financial feasibility of the proposed project, we do like the concept of the project and the potential benefits it brings to the city,” the memo states. “Whether or not now is the time for such a project remains to be seen.”
Council meets at 7 p.m. Tuesday in its chambers at 409 S. Main St.
Council Waits
According to dpM’s proposal, an 18,180-square-foot conference center would be linked to a 205-room hotel. The latter would require $9.57 million in bonds issued by Harrisonburg, while the rest of the $39.9 million project, including all the hotel costs, would be privately financed.
DpM projects that 60 permanent jobs would be created, while 100 temporary positions would be added during construction.
Developers have not publicly identified a location, but they want one “within walking distance of Main Street.”
If council moves forward, dpM must submit the financial analysis, explain how the project would affect development plans in the city, identify general public support or opposition and more.
A strategy for securing all necessary property and a detailed list of firms that would be involved in the project also must be provided.
Council members have not endorsed or opposed the proposal, suggesting that they want the information, especially the financial component, that Hodgen spells out in his memo before taking a vote.
Building a hotel and conference center, however, has been a goal of Harrisonburg Downtown Renaissance since the revitalization group formed nearly a decade ago.
Contact Preston Knight at 574-6272 or pknight@dnronline.com
In September, Harrisonburg Economic Development Director Brian Shull presented an unsolicited proposal from dpM Partners of Gaithersburg, Md., that called for $9.5 million in public funding for the project.
Because the firm’s approach to the city was an unsolicited one, made through the Public-Private Education Facilities and Infrastructure Act, competing bids were sought.
The act encourages the public and private sectors to join forces on economically viable projects, such as civic centers and schools, that would benefit investors and taxpayers. No competing bids were submitted to the city ahead of a November deadline.
In a memo to council members Thursday, Hodgen explains what actions they can now take.
Their choices are simple: ditch the idea or proceed to a “detailed stage,” which requires dpM to submit 12 specific items of information, including a comprehensive financial analysis.
Hodgen recommends seeking the details, noting that it would cost the city nothing, requiring only staff time to review the information.
“While staff does have concerns about the financial feasibility of the proposed project, we do like the concept of the project and the potential benefits it brings to the city,” the memo states. “Whether or not now is the time for such a project remains to be seen.”
Council meets at 7 p.m. Tuesday in its chambers at 409 S. Main St.
Council Waits
According to dpM’s proposal, an 18,180-square-foot conference center would be linked to a 205-room hotel. The latter would require $9.57 million in bonds issued by Harrisonburg, while the rest of the $39.9 million project, including all the hotel costs, would be privately financed.
DpM projects that 60 permanent jobs would be created, while 100 temporary positions would be added during construction.
Developers have not publicly identified a location, but they want one “within walking distance of Main Street.”
If council moves forward, dpM must submit the financial analysis, explain how the project would affect development plans in the city, identify general public support or opposition and more.
A strategy for securing all necessary property and a detailed list of firms that would be involved in the project also must be provided.
Council members have not endorsed or opposed the proposal, suggesting that they want the information, especially the financial component, that Hodgen spells out in his memo before taking a vote.
Building a hotel and conference center, however, has been a goal of Harrisonburg Downtown Renaissance since the revitalization group formed nearly a decade ago.
Contact Preston Knight at 574-6272 or pknight@dnronline.com