Hotel developer gives up on Ranch project

LOVELAND – Hotel developer John Q. Hammons dropped his plans to build a $62 million Embassy Suites hotel-convention center project at Larimer County Fairgrounds, opting to build a similar project on private land in Loveland.

In a certified letter sent to county officials – distributed this morning to Northern Colorado media – Hammons attributed his withdrawal to “the negative attitude between the county and our company” surrounding the project at The Ranch, the official name for the fairgrounds.

“We were looking forward to being a part of your program,” the letter said. “However, we have concluded that it would be in everyone’s best interest for us to withdraw from our hotel project on the county property to allow the county to proceed and select another developer for this site if you so choose.”

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The letter, dated June 22, was composed after Hammons met with the Larimer County Commissioners on June 20. The commissioners had called in Hammons to discuss his reasons for missing a June 1 deadline to start construction on the project.

The deadline was part of a long-term land lease agreement between the county and Hammons, who was going to build a hotel with up to 300 rooms and an 80,000-square-foot convention hall on a 19-acre site next to the Budweiser Events Center.

Under terms of the deal, Hammons would also have to pay $300,000 in penalties if he couldn’t meet the terms of the contract.

In the June 20 meeting, Hammons said he hoped to extend his agreement with the county, but he would have to scale back the convention center component to the range of 40,000 to 60,000 square feet.

The commissioners were scheduled to meet this morning to choose between an extension and putting the project out to bid. However, the Hammons decision made the action unnecessary.

A representative for Hammons said the developer was put off by the “negative response” at the June 20 meeting, citing the stern line of questioning from Commissioner Karen Wagner.

“He felt like he had a tremendous working relationship with (commissioner) Kathay Rennels, and he certainly appreciated everything (fairgrounds manager) Jay Hardy has done,´ said Veanne Stocking, vice president of group sales for John Q. Hammons Hotels Management LLC. “Unfortunately he got such a negative response” at the meeting.

In his letter, Hammons said he plans to build a hotel-convention center at another location in Loveland. Hammons already owns land on the west side of Interstate 25, a short distance from the Budweiser Center. He’s also talked to “two or three other entities down there” about building on other private sites.

Stocking did not identify the other potential sites, but indicated they were all within Loveland’s city limits.

“He is going to build and it’s going to be an Embassy Suites and convention center,” Stocking said.

Stocking projected the project to be 260 rooms and with the convention hall in the 40,000-to-60,000-square-foot range.

“That’s market-driven more than anything,” she said. “He doesn’t want to overbuild for the market.”

In their meeting today, the county commissioners discussed the Hammons letter, but did not come to any conclusions about the future of the hotel site.

“It’s pretty clear he’s made his decision,´ said Hardy. “On behalf of the county, we still know we have a great site for a hotel and convention center. We haven’t closed any doors there. Our plans have not changed in terms of a hotel and convention center at The Ranch.”

Hardy said the commissioners were not prepared to discuss the formulation of a request for proposal or bid process for another developer.

“Our discussion today was more reactionary in nature to what’s occurred over the last week,” Hardy said.