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Faced with a Dec. 31 deadline to take advantage of Gulf Opportunity zone bonds (Go Zone) and two hotel design/construction proposals, the Jackson Redevelopment Authority (JRA) rejected both proposals Friday, Dec. 16 that had been submitted by Dallasbased TCI and Austin-based Journeyman Austin.
The rejection of these two bids ended what some concerned residents and business people said was putting the city at risk and moving too fast.
“The board felt that with the short time frame, potential legal issues and other complexities, this was not the right time to pick a developer,” said Bishop Ronnie Crudup, chairman of JRA. “We will reopen this process in the first quarter of 2012.”
JRA board member Brian Fenelon, who introduced the motion to not accept either proposal, said the potential for the project is still great and will come to fruition. “We see great potential here. We however, want to do the right thing in the right way. If it’s delayed (further), but it’s done right, to me, that’s worthwhile.”
Transcontinential Realty Investors of Dallas, Texas, proposed a 309-room hotel with surface parking, along with an unspecified amount of retail space around the facility. TCI also owns the land to be used for the planned development and had entered into a proposed agreement with the city to sell the land back and or offer a lease option.
Journeyman Austin Holdings of Austin, Texas, proposed a 300-room hotel with a parking garage which includes up to 560 spaces, as well as 33,000 square feet of neighboring retail.
A convention center hotel had been scheduled to open in 2009 in conjunction with the convention center.
Convention Center and tourism officials in Jackson said the convention center is losing business because a connected hotel is a requirement for planners booking multi-day conventions. Officials also have touted the importance of the project reviving downtown. “I think in the end we will have a convention center hotel and we are going to have development around the hotel,” said Jackson Mayor Harvey Johnson. “JRA was charged with vetting this process and protecting the interest of the city, and I think they did that.”
Crudup said JRA would issue a new request for proposals in the first quarter of 2012, but a timeline has not been set for the process.
JRA’s decision not to select a developer also means the city will have to examine whether to finance construction through a bond issue, how much the city should contribute toward debt service and other details according to a memo obtained by The Mississippi Link.
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