Arkansas Blog: New hotel for NLR

The New Argenta Fund announced today plans for an 8- to 12-story, 130-room $28 million hotel in downtown North Little Rock on the site of the former Rye Furniture store. The projected completion date is 2010.

It's a lot easier to build an eight-story $28 million hotel in NLR, apparently, than it is in LR's River Market District. Apparently Mayor Pat Hays didn't phone Warren Stephens first to see if this hotel might create unacceptable competition for Stephens' Capital Hotel. (That's the key sticking point on a proposed Aloft Hotel in Little Rock.) And Hays doesn't seem concerned that the hotel will be at least four, and maybe eight, stories higher than the existing Argenta District four-story height limit. Seven stories has so far been too much for Little Rock city fathers for the proposed Aloft.

I spoke with John Gaudin of the New Argenta Fund and got a little additional information. Other investors, as yet unrevealed, will join the fund in the project. He said the group is in talks with several hotel operators, but isn't yet ready to announce a brand. He did say that the group had spoken with Aloft Hotels, but they were no longer in the mix.

He said a variance from historic district height limits would be required, but that the hotel design would follow "smart growth concepts" -- maximizing the frontage of the building, reducing surface parking and increasing density downtown.

Gaudin said the project likely couldn't go forward without public participation -- that is, Tax Increment Financing of public parking and meeting space. In this, the hotel would use normal property tax payments -- mostly a benefit to public schools -- to pay for the cost of these public improvements. He said he couldn't estimate the cost of that public contribution yet. A firm proposal should be before the City Council before the end of the year. The North Little Rock School Board will be asked an opinion, too. It has generally been resistant to endorse TIF projects because of the loss of property tax revenue for the period up to 25 years necessary to pay off bonds to pay for infrastructure. But the School Board's opinion is only advisory.

Developers to Open New $28 Million Hotel in North Little Rock Argenta District Hotel will feature 130 rooms and 25,000 square feet of meeting/event space

North Little Rock, Ark. (Dec. 3, 2008) New Argenta Fund announces the opening of a new $28 million hotel in late 2010 in North Little Rock¹s Argenta District. The hotel will be built in the former location of Rye Furniture at the corner of Broadway and Maple streets, near the North Shore Riverwalk and Dickey-Stephens Ballpark.

The hotel will feature eight to 12 stories, 130 guest rooms, 25,000 square feet of meeting/event space and 15,000 square feet of retail/restaurant space. A national hotel brand will be announced in the coming months. A parking deck with 300 spaces will also be built adjacent to the hotel.

³This is a needed addition to the growing Argenta District,² said John Gaudin, partner with New Argenta Fund, which is part of the development team. ³We wanted to bring in a concept that wouldn¹t compete with the neighboring Wyndham Hotel, but complement it. This hotel will help continue our growing tourism base and will offer needed jobs to area residents.²

The hotel will feature extensive meeting and business conference space something many North Little Rock business owners have been urging city officials to add downtown.

³Adding to our downtown overnight-stay options will give us more opportunities to have people on our streets and on their feet to enjoy all of the entertainment, business, educational and leisure activities that North Little Rock has to offer,² said North Little Rock Mayor Patrick Hays. ³We¹re excited about all of the city¹s growth and this announcement. Our downtown is rapidly becoming a destination place to live, learn, work, play, and now with more options, to visit.²

Construction on the hotel will begin in summer 2009.

Comments

Amazing. Simply amazing. And crazy. This country's next crisis will be in the commercial mortgage bidness. Hotels, large condo developments, shopping malls, all sorts of businesses are already finding they can't meet their mortgage payments due to the economy's downturn, and are filing for bankruptcy. It's happening from Florida to Arizona and beyond. I wish these people over there across the river the best of everything , but I think they're nuts.

Posted by: durangokid | December 3, 2008 03:27 PM

Who knew NLR needed another hotel with restaurants and convention space!

And right next door to the Wyndham!

Zexy!

Posted by: NormaBates | December 3, 2008 05:09 PM

>>But the School Board's opinion is only advisory.

What's to prevent NLR school board from filing a lawsuit over the lost property taxes?

There is a mandatory minimum for school funding that must be met with property taxes. The way the ruling fell in Fayetteville profitability of TIF districts were squashed.

I hope NLR drives up and takes a long look at the giant hole greeting people entering or leaving the Fayetteville Square. It began as a new multi-million dollar hotel until financing dried up.

Guess who lost a job and a lifetime retirement pension over that huge hole?

You could be next Mayor Hays unless you have your 10 years in already.
.

Posted by: eLwood | December 3, 2008 07:47 PM

The Wyndham operates at near capacity every weeknight year round. And it sells out for every major Friday or Saturday Alltel event. Its daytime meeting rooms and restaurant are likewise at capacity every weekday. The owners have had plans to add a four story tower for years, and I imagine they will dust those off very soon. Both hotels will thrive. And the new one will be 50' from the Maple Street trolley stop, so it will be as convenient to the SHCC as the Capital, Doubletree, Marriott...you can bet it will be competition for the Peabody, not the Capitol.

Yep, Patrick is pretty worried...only been elected 6 times in a row.

Posted by: Sanford | December 3, 2008 09:16 PM

"I hope NLR drives up and takes a long look at the giant hole greeting people entering or leaving the Fayetteville Square. It began as a new multi-million dollar hotel until financing dried up."

Amen to that eLwood. And that hole will be a fraction of the cost we'll have to bear so these same developers can stick it to the taxpayers for Southpass.

Posted by: scrapper72 | December 4, 2008 06:01 AM

Durangokid thinks this is crazy, but what he/she does not seem to understand that every real estate project has to stand on its own and frankly, this one does. If Florida and Arizona are overbuilt with hotel rooms, that has absolutely no affect on what our local dynamics are. Central Arkansas and in particular the downtown areas of LR and NLR have a lot of promise and we have hit the tipping point as far as creating enough of amenities to attract people.

The big hole in Fayetteville has no relevance to this project and trying to compare that situation to the one in Argenta is ludicrous.

Finally, for everyone that thinks this project will be taking away from the NLR district, you really need to study and understand the TIF concept. The NLR school district will continue to collect what the property is generating currently in taxes, there are NO taxes being taken away from the school district. What will happen is property surrounding this project that is not a part of the TIF will increase in value and the school district will realize increase in tax revenue immediately.

Posted by: ArgentaProud | December 4, 2008 11:04 AM

Good points, ArgentaProud. As I said before, I wish the best for this project. And, if I had it to do over again, I wouldn't describe the proposal as crazy or the people backing it as being nuts. Got a little carried away. As I've said on other threads and on many occasions, I really like what's happening over there on the river's north side. Kudos to all who are making it happen!

Posted by: durangokid | December 4, 2008 12:15 PM

Arkansas Blog

New hotel for NLR

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