Hensel Phelps negotiating for deal to construct Greeley hotel, conference center

GREELEY — Hensel Phelps Construction Inc. has been selected by the city of Greeley to begin negotiations to determine if the Greeley-based firm will receive the contract to build a hotel and conference center on city-owned property.

Allan Bliesmer, Hensel Phelps’ vice president and plains district manager, confirmed Monday that Hensel Phelps has been selected to negotiate for the contract.

Pam Bricker, with Greeley’s Downtown Development Authority, said the city and Hensel Phelps are working to determine if they can agree on terms and details of the project. Key elements that need to be determined include the cost of the project and how the DDA may or may not extend tax-increment financing assistance to the developer.

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“We’re glad we have the home team working with us on this,” Bricker said. “But there still needs to be a lot of discussion before a contract is signed. … “We’ve had a lot of calls from companies wanting to know who the developer will be, but we aren’t there, yet.”

Roy Otto, Greeley’s city manager, said there is no deadline to complete the negotiations. “It’s more like whatever it takes,” he said. “Both of the companies that submitted requests for proposals are very qualified. Hensel Phelps is a great corporate citizen for Greeley, and it’s good that we are able to work with them on this project.”

The city wants to redevelop about 80,000 square feet of land that it owns at 919 Seventh St. The area takes up the southern half of a city block between Ninth and 10th streets. According to a study commissioned by the city, the area was deemed no longer essential for city use.

That area, known as the Lincoln Park Annex, currently houses city council chambers, a 198-space parking lot and bus-transfer site. Council chambers and the bus-transfer site are currently being relocated. The north half of the block has a municipal building that will remain intact.

The city would like a hotel of approximately 150,000 square feet and 150 to 200 rooms with about 5,000 square feet of conference space that would include 2,000 square feet of breakout meeting space.

The city, according to public documents, expects to continue ownership of the land and will entertain a long-term lease with the hotel owner/operator that allows a shared-parking arrangement between the hotel and the city.

The surrounding area has a fire station, municipal court building, library and city administrative offices to the north; a park, churches, county government building plus office and retail stores to the south; retail, office and parking to the east; and a public recreation center, senior center and civic auditorium to the west.