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Coralville Project to Proceed
Despite a number of changes, officials say they're pushing ahead with the hotel/conference center
Seung Min Kim
The Daily Iowan
April 13, 2005
[Note: This material is copyright by The Daily Iowan, and is reproduced here as a matter of "fair use" for non-commercial, educational purposes only. Any other use may require the prior approval of The Daily Iowan.]
City officials also began preliminary negotiations with representatives from Hilton Hotels on Tuesday, days after the city dropped Marriott, the original operator of the $70 million center.
Coralville officials had planned to use Marriott as their hotel operator but ousted the company from the deal, worried that it would not complete the project in time, said city administrator Kelly Hayworth.
"It's the same project, and we're working with experts to make sure we're making the right progress," Hayworth said.
Mayor Jim Fausett said the council's approval means the construction process can proceed, even if a hotel operator is as yet unnamed.
Talks between Coralville and Hilton began with officials exchanging basic information about the project, Hayworth said, adding that he hopes to find a hotel operator within two weeks.
Other hotel companies, such as Hyatt, are being considered for the contract - Coralville's only stipulation being that the hotel provider be a full-service hotel.
Despite its recent ouster, Hayworth said Marriott was still an option for the hotel and conference center.
The Iowa River Landing District, touted by officials as a landmark attraction for Coralville, has hit several snags recently, as contractors were swapped and hotel companies dropped.
In December 2004, construction bids for the project came in $10 million over budget. Last month, Coralville officials revealed in a lawsuit that they had lost upwards of $3 million after an Austin, Texas-based consulting firm had allegedly duped the city about the project's budget and progress.
Before city officials expelled Marriott from the project, councilors had been set to approve the contract with the hotel operator, according to the council's agenda.
Because of the dismissal, the only resolutions councilors approved Tuesday night were an amended layout plan and a guarantee to other companies involved in the project that they wouldn't lose money if Coralville wasn't able to sell bonds for the center.
The amended plan approved was the one presented in March, which was a more efficient configuration of the conference center that reduced the overall size while keeping the number of rooms the same.
Officials had hoped to break ground on the hotel and conference center early next month near the Interstate 80-First Avenue interchange, which would be adjacent to a $180 million environmental arena that includes a 4.5-acre indoor rain forest and a 1 million gallon aquarium.
Because of recent changes, Hayworth said the chances of groundbreaking ceremonies commencing as scheduled were "reasonable." The final date would depend on the other groups involved, including the hotel operator, financiers, and construction companies.
"We would like to get it all together" before the groundbreaking, Hayworth said.