GlobeSt.com UPDATE: PDC To Issue Addendum to Hotel RFP

PORTLAND-The Portland Development Commission on Wednesday directed staff to ask the four development teams vying to build an 800-room hotel across from the Oregon Convention Center to submit new cost and financing estimates for a minimum 400-room first phase. The Request for Proposals sent out in September called for a minimum 600-room first phase. The revised numbers will be requested in the form of an addendum to the RFP.The addendum is in part due to lobbying from local hotel owners who are concerned that such a large, publicly subsidized hotel will steal their business. In addition, there is concern the public subsidy necessary to develop a larger first phase may not be achievable. “The size of the hotel has direct bearing on its cost and any public subsidy required,” states the Wednesday announcement by the PDC.The addendum will set back the developer selection process by no more than 90 additional days, according to the PDC. PDC staff is still working up a new schedule for the process, which will include a date for issuing the addendum, sufficient time for the developers to respond and sufficient time for the evaluation committee to review the responses and decide on which team to recommend. Following one previous delay, the evaluation committee was scheduled to make its recommendation at yesterday’s (Wednesday, June 22) regularly scheduled PDC board meeting.After the committee’s recommendation, The PDC will hold at least three public meetings before the PDC board will vote to move forward with one of the development teams, according to the PDC. After that, PDC staff and the selected development team will begin negotiations for a Memorandum of Understanding with regard to the project and, eventually, a more binding Disposition and Development Agreement.The teams are led by Jones Lang LaSalle and BPM Development; Ashforth Pacific and Garfield Traub Development; Hines Interests and Wright Hotels; and Faulkner USA. Their original proposals for an 800-room hotel ranged in price from $180 million to $237 million. Only two of the four teams offered up private financing options, and both still required tens of millions in public subsidy. The public financing option in all four proposals is largely the same, calling for a special purpose entity to own the building and finance its development with tax-exempt bonds.For previous stories on the convention center hotel, click on one of the following headlines:

• GlobeSt.com UPDATE: PDC Again Delays HQ Hotel Decision
• GlobeSt.com UPDATE: PDC Delays Headquarters Hotel Decision
• GlobeSt.com UPDATE: City Takes Possession of Menashe Property
• GlobeSt.com UPDATE: City Releases Full Hotel Proposals
• GlobeSt.com UPDATE: PDC Briefs HQ Hotel Proposals
• PDC Delays Release of Hotel Proposals
• PDC Files Suit to Take Menashe Property
• City, Menashe at Odds Over Value of Convention Center Hotel Property
• RFQ Out for $150M Headquarters Hotel
• RFQ for Headquarters Hotel Set for September