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New Convention Center Hotel in jeopardy

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WILMINGTON, NC (NEWS RELEASE) - The City of Wilmington has received word that the latest potential developer for a convention center hotel is being stymied from making a deal by the nation’s economic downturn.

After the city requested that the John Q. Hammons Hotels and Resorts company begin negotiations for a formal agreement on the hotel, the Hammons company responded with a letter citing economic conditions and prior financial commitments as reasons for not proceeding.

In the coming weeks, the city will assess the situation and provide a recommendation to City Council about next steps.

The Wilmington Convention Center is scheduled to open this November. The construction and operation of the convention center is funded by a specially designated 3 percent hotel room tax.

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It seems to me that the

It seems to me that the Wilmington City Council doesn't like to plan things out ahead of time, they should have had a firm (100% were going to build it no matter what) agreement to build the hotel before they even broke ground for the convention center.

Look at the way they handled the cross-city trail, building the trail without any parking or bathroom facilities along the route,
and planning it phase by phase, the trail might end in a culdesac off Teal Street, instead of going through the Autumn Hall Development and connecting to Eastwood Road, there is no 100% guarantee the cross-city trail will have a true start-to-finish route.

Isn't it amazing?

All these hotel chains that build hotels all over the world regularly simply can't get the numbers to crunch when it comes to the convention center. Only the Wilmington City Council knows what a "great deal" this is.....

They should lose thier jobs!

Any official that voted for the convention center should lose their job. However, this is Wilmington so the expectations are pretty low. Let's see, raise the sales tax rate to the highest in the state and add a fee to hotel cost to subsidize the convention center. Then, everyone will want to come to Wilmington!

Convention Center Hotel

Just another kink in the chain that the city is using to hold us all down. What a freaking joke. Mr. Laffo and his crowd need to be impeached for the sorry way they have not only lied to and mistreated existing city residents as well as held up at gun point basically with the annexation of Monkey Junction. They are all crooks and liars of the highest caliber.

Delaware-and Wilmington

The lesson of castle's defeat in delaware-is that Mcintyre, Catlin and others who serve their own interest-like saffo are politicians of the past. People are fed up with self serving politicos -this isnt about tea party-its issues like convention center- we need new leaders and leaders who represent all of us--- not themselves -we need to defeat Mcintyre-catlin and other ole boys. Better to go with Pantano-Goolsby- Berger and others. We need change---not good ole boys and special deals for Developers and Mcintyres friend Harry Ried.
Vote Pantano-Goolsby-Berger-------true leaders

It's a double edged sword

The economic downturn has caused most sub-contractors to lower their labor costs in presenting bid proposals. Material costs are down, for the most part, due to the decline in construction activity. Bottom line is a reduction in total construction costs for those contractors seeking projects on which to work.

Sounds Good, right?

The other side of the sword. Lenders are requiring more equity by the developer to qualify for funding. Insurors have tighter underwriting criteria, including strong financials, in considering performance bonds which are a key to any successful project.

And there you have the challenges facing any developer.

This may never get out of the starting gate. Unless, the city finances the construction costs and allows the developer perhaps as many as 5 years before they have to re-finance.

It's the taxpayers' money. Not to worry; the City will likely proceed in a manner least desired by the voting, tax paying populace.

hotel

Oh my, they are clambering to get into downtown Wilmington aren't they?

With all the negativity the local bar scene has down there no wonder.

I agree

I agree - you will see the truly positive turnaround of downtown occur when they oust all of the bars and eliminate much of the drunken idiot populace. Nice establishments (Deluxe, Caffe Phoenix, etc.) would be a nice complement to a convention center and hotel in that location...but the large number of bars in a small radius has proven time and time again to present a struggle too great for the the downtown area to overcome.

Every night crime reports are being released and the majority of them involve one or more intoxicated individuals in the downtown area...it's easy to see the root of the problem. I'm sure these investors have been keeping an eye on such reports and don't want the headache of their luxurious hotel in the midst of drunken "frat house brawls" and dealing with intoxicated individuals who punch police horses....who can blame them?

If you want any semblance of sophistication and a thriving community outside of "barhoppers" in the downtown area, it has come down to this--What's more important: Working to preserve and maintain the image of a "family friendly" town with restaurants and shops or catering to the "college bar crowd??"

You can't have it both ways - it just doesn't work.

New Convention Center Hotel in jeopardy

The convention center was built in the wrong location to begin with. Can't blame the hotel backers for wanting to pull out.

i told you so

Mr. Mayor:

We told you the convention center would not succeed. You went ahead with it anyway. Now look what happened.

I told you so !

Like I have stated numerous times before , the convention center was ill-advised and the liklihood of finding a hotel developer will be even more difficult because the business plan does not add up.Even during prosperous times , the MAJORITY of convention centers fail around the nation. This center will never be self sustaining. The people of this community deserve what they get voting knuckleheads into office like Saffo and Company. I think it may be time to lower their standards and call upon some low budget motel chains for potential development. The Motel 6 should be able to offer the ammenities to the great masses of people that will be flocking to our area. I also know a number of caterers they can call upon.

From an architectural standpoint , it is not a very impressive facility along the city skyline.Champagne taste on a beer budget !!

Saffo-caster and catlin-ugh

Same result from same boys who have given us CFPUA, skyways, and the wasteful convention center= good for them and their cronies the developers and others-not so good for all the rest of us. We need a culture change in City and County---lets starte in County with
Goolsby and Berger---they are so much better than the old guard.

They dont get it

Jones for McIntyre---Catlin taking money from same special interests as Caster--remember that primary nigh pic--Caster and Catlin(that pic says it all). We can't afford politicians who practice deception-- if Catlin wont support Republcian ticket---then lets dump him.
We need to do better than the phony politics of a guy who plays with Causey a tax and spend lib-- hey rick we arent dumb we see your duplicity.