AURORA | Downtown Denver hotels continue to work to undo the tentative plans for a Gaylord conference center in Aurora, this time asking the state to withdraw grant money because the scope of the project has changed.
A lawyer for 24 Denver hotels and lodging groups said state money should be pulled from Aurora’s Gaylord hotel project at a July 25 economic development meeting.
The meeting was the latest revelation for the Western-themed hotel project in Aurora, which has caused a rift between Aurora officials and some Denver-based hoteliers who are trying to block the project because they say it would cannibalize their business.
The complaining hotels signed a petition to persuade the Colorado Economic Development Commission to reconsider granting $81.4 million in tax incentives to the Gaylord project. The commission said they would respond to the complaint after conferring with the Colorado attorney general’s office.
Trey Rogers, an attorney for Denver-based law firm Rothgerber Johnson & Lyons LLP, which is representing the petitioners, said the state awarded tax breaks last year to a project that was different than current plans.
For example, according to Rogers, weeks after the Colorado Economic Development Commission awarded the Gaylord hotel project state tax incentives last year, Marriott International Inc., bought the Gaylord Hotels brand. Now, the hotel project will be developed as a Gaylord-branded hotel but owned by Houston-based RIDA Development Corp. And, according to documents leaked to the media in June, the estimated cost of the project has decreased from $824 million to $735 million.
Those are reasons why the commission should reconsider giving the Gaylord hotel project public funding, Rogers said at the meeting.
“Circumstances have changed; they have changed pretty dramatically, and we think those changes warrant reconsideration,” Rogers said.
Hotels that have signed on to the petition include the Four Seasons Hotel in Denver, the JW Marriott in Denver, the Ritz-Carlton in Denver, The Broadmoor in Colorado Springs. The Colorado Hotel and Lodging Association and the Metro Denver Hotel Association are also petitioners.
Representatives from about five hotels who signed the petition declined to comment on why they wanted to block the project from receiving state funding, deferring all questions to the law firm representing them.
Aurora lawmakers and economic development officials say they are still confident the hotel will be built. Construction is still expected to begin later next year or early 2015, and the 1,500-room hotel and conference center is slated to open during the second half of 2017.
Aurora Mayor Steve Hogan said state tax incentives were approved after a lengthy public hearing process, and the scope of the project remains the same.
“This project was approved 433 days ago … if you can’t count on an approval, what can you count on?” he told commissioners at the meeting.
He said there are about 30 hotels within a 1.5-mile radius of the proposed Gaylord hotel location in Aurora territory near the Denver International Airport who did not sign onto the petition to rescind public assistance.
“Clearly, there are some other folks in the business who think the Gaylord project is not competitive,” he said. “In fact, it will help them.”
Wendy Mitchell, president of the Aurora Economic Development Council said the project is moving forward and a contractor will be announced within 60 days. However, the actual cost of the project is “unpredictable,” and likely won’t be known until the Gaylord hotel opens its doors because inflation and construction costs can vary.
She criticized hoteliers trying to block the project from going forward because it would be too competitive.
“It’s very difficult to put together financing (for the Gaylord project) when you have this sort of activity,” she said.
Several officials and business owners came to the meeting in support of the project, including Adams County Commissioner Chaz Tedesco.
“This brings hundreds of millions of dollars in workforce, taxes, tourism and it’s a benefit for the entire region, not just one section,” Tedesco said.
About 12,000 construction jobs will be created during the course of construction and 2,500 permanent jobs will be created when construction is complete, Aurora economic development officials said.
“Do not second-guess your decision at the 11th hour,” Tedesco told the commissioners.
When they applied for state funding last year, Aurora officials said the hotel could not be built without public assistance. For that reason, Aurora City Council members agreed to give the project up to $300 million in tax incentives on top of the state’s incentive.
Marcelo Birckenstaedt, general manager of Woolley’s Classic Suites, who is building an upscale boutique hotel in Aurora with 191 rooms near East 40th Avenue and Pena Boulevard, said he’s supportive of the Gaylord project.
His hotel will be two miles away from the proposed Gaylord hotel, and he says he welcomes the competition because it’ll increase out-of-state visitors and tax revenue.
“I think it’s detrimental to everybody in the area to fight it,” he said. “We’re fighting progress.”
Reach reporter Sara Castellanos at 720-449-9036 or sara@aurorasentinel.com.