Posted on 01/24/2008 1:50:19 PM PST by weegee
A company's bid to reinvent the Astrodome as a convention hotel suffered a major setback Wednesday when a county board refused to give it more time to negotiate a lease and finalize a loan.
Entrepreneurs from Astrodome Redevelopment Co., aiming to transform the building once known as the Eighth Wonder of the World into a 1,300-room, $450 million hotel, say their quest isn't over.
But the decision made Wednesday by the Harris County Sports and Convention Corp.'s board drops the development company's exclusive right to strike a deal, allowing the county to entertain other proposals to find a second life for the venue.
"It's really up to them whether it is the death knell," said County Judge Ed Emmett, who made a rare appearance before the board to ask it not to give Astrodome Redevelopment more negotiating time. "They still can move forward."
The sports corporation's board refused to extend the negotiating period on a 4-0 vote. Board members declined to discuss the vote in detail, saying there are confidentiality provisions in the letter of intent that limit what they can divulge.
Vice chairman Charles "Sonny" Sowell said: "This (vote) is not to say that nobody is interested in what ARC is trying to do. If ARC has plans that they want to continue, it's their choice."
The Dome's future rests with two bodies. The sports corporation will review options and vote on a plan. Commissioners Court gets final say.
Judge questioned finances The sports corporation and Commissioners Court gave preliminary approval to Astrodome Redevelopment's proposal in summer 2006. A letter of intent signed by the sports corporation and the company spelled out that Astrodome Redevelopment had to work out deals with the Texans and the Houston Livestock Show and Rodeo — Reliant Park's main tenants — and secure financing.
The Texans and the rodeo have adamantly opposed the convention hotel, saying it would hurt their operations.
With the letter of intent set to expire Jan. 29, county attorney Mike Stafford notified Commissioners Court that it would be appropriate to grant a 90-day extension because county financial experts hadn't finished analyzing the deal.
Emmett, however, urged the board Wednesday to deny the extension.
"There is no financing package that has been presented to the county," he said. "We are in a circumstance that this has been going on for years. There comes a point at which you can't just keep granting extensions."
Company will regroup Astrodome Redevelopment chief executive John Clanton said his company has shown that Deutsche Bank will finance the project and has met its milestones. The county's financial analysts sought the extension, not Astrodome Redevelopment, and his company shouldn't be penalized, he said.
Despite the blow, Clanton said his company would regroup and secure a deal with the sports corporation and the county.
Meanwhile, there could be three or four groups prepared to present plans to transform the Dome.
The Houston Livestock Show and Rodeo may be one contender, said Leroy Shafer, the rodeo's chief operating officer. The rodeo and partners are looking into whether the Dome could serve as a replacement facility for aging Reliant Arena.
Astroturf and tiered stadium seats would give way to more than 1,000 horse stalls and an arena with a capacity of at least 6,000. The vast open area where former Astros stars Jimmy Wynn and Jeff Bagwell hit towering drives would be turned into a three-story exhibition and stalling space, Shafer said.
The rodeo has not yet studied how much it would cost to turn it into a replacement facility for Reliant Arena, he said.
Transforming the building could be vastly more expensive than building a new Reliant Arena, but it may be economically feasible, Shafer said.
"The rodeo has a record of paying for our facilities and partnering with Harris County," Shafer said. "Sure, we can come to the table and help finance it."
Houston PING
CASINO! CASINO! CASINO!
Aging Reliant Arena?
The Astrodome is close to menopause.
I would think that having a large hotel would help the rodeo. When we are down for that and the cattle shows we have to stay miles away and drive and then park just as far away as we drove almost ( if we find a spot ) and ride a shuttle.
Push it over and fill in the hole. We need more parking!
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