University President Ross given power to negotiate land lease for hotel near Kelly/Shorts Stadium
The CMU Board of Trustees granted University President George Ross authority to negotiate a land lease agreement with Lodgco Management LLC Thursday.
David Burdette, vice president of Finance and Administrative Services, said Lodgco approached him during the summer with a proposal to build a hotel east of Kelly/Shorts Stadium to be completed in time for the 2012 football season.
“I can only describe it as a ‘eureka moment,’” Burdette said.
Lodgco’s proposal was developed after a plan approved in July 2008 to build a Holiday Inn and office building complex within the Center for Applied Research and Technology stalled because of a lawsuit with LaBelle Limited Partnership.
General Counsel Manuel Rupe said the trial is scheduled for May 16-24, 2011.
Michael Smith, president of Lodgco, said they will provide a modern-designed project which will blend into existing CMU architecture.
“We’re proposing a 150-room hotel with five or six stories,” Smith said.
The hotel would include indoor and outdoor pools, exercise facilities, business center, restaurant, conference space and more.
Also included in the design package were at least six leasable stadium suites added onto the stadium and connected to the hotel by a glass atrium. Smith estimated the project would cost $22 to $25 million total. Because it is a private development, university funds will not be used.
New market
Lodgco wants to develop this project because the local market can support another hotel, Smith said.
“This will be a nice product to bring in, because it’s full service,” he said. “We don’t feel that need is being met here.”
Smith said the hotel will provide internship opportunities and hands-on experiences for students of business, construction management and hospitality.
“We will actually host classes on a regular basis and then what they learn in that classroom, they will be able to go out live and see that operation,” he said.
Athletics will also benefit from this project, Smith said, by generating more revenue. The stadium suites will be able to hold roughly 40 people each, have sliding glass windows and some will have outdoor gathering areas.
Dave Heeke, director of Athletics, said they did research to determine demand for the suites and generated a waiting list.
“There is a strong demand for additional locations inside the stadium,” Heeke said.
Barrie Wilkes, associate vice president of Financial Services and Reporting, said this is a great opportunity.
“It’s a win for the city, it’s a win for the developer and I really think it’s a win for the university both academically and athletically,” he said.
Wilkes said further drawing and developments will take place to determine the lease price.
“This is the beginning of the process to give Lodgco the assurance that the university is supportive and therefore they can spend the money to really get the design done to get to the bottom line,” he said.
Ross will report to the board after negotiation. If necessary, a special board meeting will take place to vote on the agreement.
