Plans to build a 300-room hotel at the Gwinnett County convention center moved forward this week, after years of delays and negotiations.
Gwinnett commissioners will vote on Tuesday to lease county-owned land to the Development Authority, which will then partner with Concord Sugarloaf LLC for the construction of a Marriott hotel. The $70 million project will not require any additional investment from county taxpayers.
“We’re still pinching ourselves,” Gwinnett County Chairman Charlotte Nash said of the deal Thursday. “Planning for the center has included a hotel for a long, long time.”
Nash said having the hotel at the county-owned Gwinnett Center — which includes the convention center, a ballroom complex, a performing arts center and a 13,000-seat arena — will make the area more desirable for some groups, many of whom would have overlooked Gwinnett without it.
The construction could also help the county with its goal of creating an entertainment district in the area, said Preston Williams, CEO of the Convention and Visitors Bureau.
The Marriott is one of three hotels in the works in the area. A 115-room Courtyard by Marriott on Satellite Boulevard broke ground in October and a 166-room Embassy Suites is slated to break ground by early June.
“Hotel developers do not build hotels based on speculation, they build it with knowledge for demand,” Williams said. “There’s going to be an even bigger need for it in the future.”
Williams said the hotel had been part of the grand Gwinnett Center plans for more than a decade. All of the rooms for the three properties should be available in the next two and a half years, he said.
The hotel process began in 2011, when the Gwinnett Convention and Visitors Bureau first requested proposals from companies interested in building the property. In February 2012, county commissioner John Heard, an architect, disclosed that he had served as a paid consultant since the prior month for one of the bidders, Nilhan Hospitality LLC.
He recused himself from discussions related to the deal and resigned his seat on the board of the Convention and Visitors Bureau. That board later recommended commissioners move forward with a proposal that partnered Nilhan and Concord Sugarloaf.
While Nilhan was originally the lead company, Concord Sugarloaf has taken over the primary role. Nilhan and developer Chittranjan “Chuck” Thakkar had several lawsuits filed against them related to nonpayment of debts, and the company filed for bankruptcy protection earlier this week.
Nash said Nilhan’s filing would not have any effect on the deal going forward.
“As far as we’re concerned, there’s really not any involvement,” she said.
Negotiations for the project took well over a year, but the Convention and Visitors Bureau board on Wednesday approved a resolution encouraging commissioners to approve the land lease that would allow for the hotel’s construction. Convention board members extolled the process, even as they called it excruciating.
“I can’t believe there’s been any deal that’s been any more looked at,” said board member Tommy Hughes. “I thought so many times that we weren’t going to have this hotel, and we all know how important to the future it is. It’s an exciting time for us.”
The agreement will be in front of county commissioners Tuesday evening. Jace Brooks, a commissioner and a member of the Convention and Visitors Bureau’s board, said he was “very excited” about the proposal. To reach a hotel agreement like this without any public money being used is rare, he said.
Williams said there is no risk to the county — if anything happens mid-project, the developer has to return the land and remove any remnants of construction. The Convention and Visitors Bureau will oversee the plans and construction. The only skin Gwinnett County has in the deal is the approximately five acres it will be leasing to the Development Authority, he said.
“We need it, we’re finally going to get it, and we’re going to get a quality product with a quality partner,” said Richard Tucker, a member of the board. “It’s going to be really exciting when that opens up.”
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