Lee Fehrenbacher//December 2, 2012//
Negotiations between Metro and the development team chosen to build the headquarters hotel near the Oregon Convention Center are taking a bit longer than originally planned.
Originally slated for consideration on Dec. 13, staffers have requested more time from the Metro Council to proceed with its negotiations between Mortenson Development and Hyatt Hotels. Teri Dresler, convention center general manager, said the original schedule that staff set for itself was probably too ambitious. Negotiations are now likely to push into the new year.
Dresler said the labor peace agreement between Hyatt Hotels and UNITE HERE was necessary before negotiations between the city and Mortenson Development/Hyatt Hotels could proceed. That process took six weeks. As a result, Metro staff had the opportunity for only three meetings with Mortenson so far.
On the table is a debate about the amount of public money to be invested in the project. The original RFP proposed a public contribution of between $15 million and $30 million. Dresler said the funding gap is more a question of time than money.
鈥淭hey want more public money than we provided in the RFP, and we want them to pay for more,鈥 she said. 鈥淚t’s just a normal back and forth, and so I think it’s nothing more than we just need more time to do our due diligence.鈥
One thing that has been decided is to move forward with one 600-room building across from the OCC, instead of two smaller buildings. Metro councilors on Tuesday will see a presentation from a private consultant who has studied the potential economic impact of the new hotel.
As the negotiations proceed into the new year, two new city councilors and three new Metro councilors will be joining the discussion. Dresler said they will likely need to be brought up to speed on the details but initial conversations had been productive.
Tuesday’s meeting takes place at noon at the Metro Regional Center at 600 N.E. Grand Ave. in Portland.