Stalled Hyatt Hotel Project Revived with New Development Team
Published November 30th, 2022 at 9:45 AM
The long-stalled Hyatt House hotel project at Ninth and Broadway may have fresh life with its Colorado developer taking on two partners and asking for a transfer of its tax incentive package to the new team.
Pedersen Development of Boulder is seeking approval of the new development arrangement from the Land Clearance for Redevelopment Authority. The proposal is scheduled to be considered by the LCRA board next week.
Work on the 13-story, 154-room Hyatt project began in early 2019 but was halted about a year later when developer Scott Pedersen said Covid-related supply chain problems made further progress impossible.
The tower crane was ultimately dismantled and the construction site has been dormant since March 2020.
The LCRA had approved a $38 million construction bond, but the developer’s private lender fell through, according to agency documents. The subcontractors later filed lawsuits against the agency, which retained title to the property as part of the redevelopment agreement.
The tower crane for the Hyatt House project at Ninth and Broadway was dismantled after construction stalled in 2020.
The proposed LCRA agreement states that Pedersen has enlisted two partners to the deal, O’Reilly Hospitality Management of Springfield and Lotus Holdings of Kansas City. The team is expected to seek a new development loan and resolve the subcontractor lawsuits.
The new development team is asking the LCRA to transfer the original 15-year property tax abatement, 10 years at 100 percent, five years at 37.5 percent.The project also was granted a sales tax exemption on building materials.
The LCRA document says the project would still an extended-stay hotel with approximately 154 guest rooms, approximately 2,500 square feet of meeting space, and approximately 6,000 square feet of common area that will be available to hotel guests and the public.
Pedersen could not be reached immediately for comment.
In a related matter, a hotel planned at Ninth and Wyandotte near the Hyatt House project remains on hold. Sioux Falls-based Lloyd Cos. had planned to build the 149-room Hotel Cambria project next door to the historic Savoy 21C Museum Hotel.
An official with Lloyd said the firm still owns the land, but has not set a date for construction of what had been estimated as a $28 million project two years ago.