Design Build Firm Sought for Hotel Conference Center

TYLER — The Tyler City Council voted unanimously Wednesday to authorize the city manager to advertise a request for qualifications for a design build firm for the design and construction of a hotel conference center. City of Tyler staff is in the process of developing a hotel conference center as part of the Industry Growth Initiative (IGI) plan that identifies tourism as a primary building block for economic development in the community. Officials say tourism brings in “fresh” dollars to Tyler and is a growing industry. Tyler has historically lost significant tourism revenue because of the lack of appropriate facilities to host large conferences, according to officials.

During the IGI planning process, it was identified that a hotel conference center was a critical element missing from Tyler’s arsenal of tourism attractions. Adding this facility would provide a competitive advantage to the Smith County region in attracting visitors from all over the state and country, according to city leaders. It is estimated that Tyler is not able to book more than 20,000 visitors per year due to the lack of facilities that are conducive to hosting conferences.

The City of Tyler has taken steps to begin the process of developing this facility. An agreement with GT Development was signed in December 2014 to act as the city’s consultant. Additionally, a letter of intent was signed with Champ Hospitality to begin predevelopment work on the facility. Although a final assessment is still underway, it is anticipated that the attached hotel will be around 220 keys and the conference center will provide approximately 26,000 square feet of meeting space. The hotel is being deliberately undersized to drive overflow room nights to other Tyler hotels, according to city officials.

The City of Tyler owns the land for the hotel conference center, which is located at the intersection of Loop 49 and Broadway, just south of The Village at Cumberland Park retail center. The center is expected to cost approximately $56 million with the City paying for $17 million through hotel occupancy tax funds for the conference center and private investments funding the $39 million balance for the hotel.

Since executing the contract with GT Development and the LOI with Champ Hospitality in December, staff has worked with these companies on the defined predevelopment activities. The RFQ that was approved by Council Wednesday will be used to identify the Design Build Team that would design and construct the hotel conference center when funded, according to city officials.