Jonesboro A&P hears from Keller on second convention center project
by February 10, 2016 5:39 pm 193 views
Rendering of the possible Jonesboro hotel appearance with the Keller Convention Center project.
Forest Langenfeld told the Jonesboro Advertising & Promotions Commission Wednesday (Feb. 9) that the Keller Convention Center project is “definitely coming to Jonesboro.”
However, a decision on funding from the A&P commission for the project and a similar one will be made March 2. Langenfeld, who represents Keller, asked the commission for a $150,000 commitment a year for three years, plus a return on all room tax revenue that the hotel receives. Langenfeld told the commission the amounts are negotiable.
Officials with Keller announced plans Jan. 6 for their convention center project. The plan calls for the convention center to be built at the former Arkansas Services Center along U.S. 63. A 159-room hotel and 37,000 square foot convention center would be part of the hotel/convention center project, with the prospect of a second hotel to be built on the site, Langenfeld said.
Langenfeld said the second hotel plan is under discussion, but would likely happen two years after the first hotel is built. A decision on Hyatt being the flagship hotel for the center is likely to be known within 30 days, Langenfeld said.
Commissioner Naz Kazi said while he was excited about the convention center coming to Jonesboro, he suggested splitting up the money. Kazi suggested giving $150,000 in year one, $100,000 in year two and $50,000 in year three, plus the A&P funding.
Kazi, who owns a hotel in Jonesboro, said hotels typically do not see a profit in the first year with revenue coming in the later years. A motion on Kazi’s plan died due to a lack of a second.
Langenfeld said the Keller convention center project would be based after a convention center in Effingham, Ill. The project is expected to create 500 construction and 250 permanent jobs, Langenfeld said, noting the group estimates a $9 million to $12 million boost per year to the local economy. Also, Langenfeld said he anticipated other businesses like gas stations and restaurants would be built near the Keller convention center.
“A rising tide will lift all boats,” Langenfeld said, noting the restaurants in the convention center would not compete with area restaurants.
ANOTHER RISING TIDE
The Keller project is one of two convention center projects under consideration in Jonesboro. Missouri-based O’Reilly Hospitality Management is working to build a hotel/convention center at the former Arkansas State University track complex on Red Wolf Boulevard.
The O’Reilly project would have a 202-room Embassy hotel, a 40,000 square foot conference center and a Houlihan’s restaurant. Of the 40,000 square feet, 24,000-square feet would be used for meeting space. Also, a hotel management program would be created at ASU-Jonesboro, Tim O’Reilly told the commission Jan. 20.
O’Reilly asked for $356,000 a year for 10 years, with a guaranteed 10 years after that; minus $100,000 in existing A&P funding that ASU already received, commission chairman Thom Beasley said.
Beasley asked Langenfeld about the feasibility of having two convention centers in town. Langenfeld said having two in Jonesboro would be a stretch, but two convention centers in Jonesboro will not change the company’s plans.
At the Jan. 20 A&P meeting, Tim O’Reilly told the commission he did not believe two convention center projects would be viable in Jonesboro.
TAX REVENUE ESTIMATE
Based on what is collected in Effingham, Langenfeld said they anticipate $1 million in sales tax revenue as well as $250,000 in A&P tax revenue collected each year.
Beasley asked Patty Green about the clientele that go to the Illinois convention center. Green, manager for the Illinois hotel, told Beasley that the Illinois convention center draws a lot from business clients, not to mention weddings and family reunions. Langenfeld told the commission that Keller has been active in the Illinois town, hosting events for area groups.
Before the meeting, developer Gary Harpole said the $3.25 million sale of 13 acres needed for the project had been finalized. The warranty deed exchanging the property from Centerline to Northern Arkansas Hotel & Convention Center was completed Wednesday.
As for the O’Reilly project, the Arkansas State University Board of Trustees are scheduled to take up the project at its Feb. 26 meeting in Little Rock or at a special meeting before that, ASU Chief of Staff Shawnie Carrier told the commission.