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The need for a large Lloyd District hotel to serve the Oregon Convention Center has long existed, and now Metro has a couple of new development proposals.

The agency is seeking a hotel with at least 500 rooms, adjacent to the center.

One proposal came from Langley Investment Properties and Garfield Traub Development LLC; their team consists of Sheraton-Starwood Hotels, ZGF Architects LLP, RTKL Associates Inc. and Turner Construction Co.

The other came from Mortenson Development Inc.; its team consists of Hyatt Hotels Corp., Mortenson Construction, Schlesinger Cos., Ankrom Moisan Associated Architects, Elness Swenson Graham Architects, Piper Jaffray and Co., and Jones Lang LaSalle Hotels.

鈥淚t’s a real positive sign that the private sector feels that there’s a need and they’re willing to invest,鈥� said Teri Dresler, general manager of Metro’s visitor venues. 鈥淲e have our high hopes.鈥�

Dresler said she planned to dig into the two proposals and that staffers hoped to submit a recommendation for their preferred developer to Metro Council and the Portland Development Commission by mid-August. Metro also is in the process of hiring a financial consultant who is experienced in hotel finance to help the agency determine the appropriate level of public investment.

Several incentives are on the table. One is the use of PDC-owned and/or Metro-owned parcels near the convention center. Dresler said the PDC also has between $4 million and $6 million in urban renewal money available and that Metro has the ability to contribute between $2 million and $5 million in cash. Metro also could give the developer a temporary rebate on the transient lodging tax, which is collected from new hotels.

Dresler said it was too early to tell exactly what level of public investment would be required.

鈥淭hese deals I’m realizing pretty quickly are pretty complex,鈥� she said. 鈥淚 think the days where you could have one finance plan with one bank or one bank and one public entity are gone. You kind of have to piece things together these days.鈥�

A 鈥榟eadquarters’ hotel idea has been on-again and off-again for the better part of a decade. Buzz began at least as far back as 2004, when the PDC issued an RFP for development. Proposals then included familiar names like Garfield Traub, Schlesinger and Jones Lang LaSalle, among others.

In 2008, the potential project went to Ashforth Pacific (now Langley Investment Properties) and Turner Construction Co. At that time, the estimated cost was approximately $247 million. The effort fell apart in large part because of the sinking economy.

But now developers and city officials evidently feel the tide has changed once more in favor of the project.

鈥淚 think a lot of the reports that have been published in the various newspapers are accurate in that having that anchor convention center hotel is absolutely critical to attract the volume and size of conventions that a city like Portland warrants in order to make that convention center really meet its potential financially,鈥� said Jim Yowan, vice president and general manager for Mortenson. 鈥淪o I think it’s very necessary, and I think it will do very well given the other opportunities right in that area.鈥�

Mortenson was one of the companies that bid on the project during the last round but was not selected. Yowan said he could not yet disclose details of the team’s proposal. But when asked if it included Schlesinger-owned parcels of land north of the convention center, he said that it did.

Demand for a headquarters hotel has remained strong despite the recession. According to Travel Portland, 30 large convention groups 鈥� representing 104,250 room nights and $35 million in community spending 鈥� passed over Portland last year because it lacks a headquarters hotel.

鈥淚 think it would be a wonderful addition to the Lloyd District as well as the city of Portland,鈥� said Anna Langley, director of marketing for Langley Investment Properties, adding that while she was also unable to comment on the team’s proposal at the present time, investors are interested in seeing the project progress. 鈥淚 think that there is a ton of capital that is very interested and eager in looking at opportunities of this nature.鈥�

Dresler thinks the project will be a boon for the city.

鈥淭he construction market has changed, and we really want to generate an opportunity to help the convention center and the national meeting business thrive in Portland,鈥� she said, 鈥渁nd create jobs and financial opportunities.鈥�