Developers hurdle delays on out-of-state projects

A pair of notable out-of-state projects worth tens of millions of dollars and led by local contractors have faced delays from financing snags, but that’s not jeopardizing forward momentum, according to builder representatives.

In Indiana, Branson-based HCW LLC is moving ahead on a $70 million conference center, hotel and parking garage for the city of Evansville after five months of delays. HCW CEO Rick Huffman said high bids from subcontractors set the project back, but with new designs and financing secured, the project is again gaining traction.

In Alabama, Killian Construction Co. was named the general contractor for a $16.2 million set of youth sports ball fields in March, even as financing hurdles remain for the $200 million development near the Gulf Coast dubbed Blue Collar Country. And a local hotel development and management company now is helping shape the future of the project, even as it continues to grow its presence around the country.

For several locally based companies, the Springfield-Branson area isn’t a big enough canvas for their grand plans.

Blue Collar Country
Springfield-based O’Reilly Hospitality Management LLC is expected to co-own and/or manage a roughly 150-room Hilton Garden Inn as part of the sprawling sports and entertainment venue in Foley, Ala.

The hotel is a key cog in the 520-acre Blue Collar Country complex being developed by Springfield-based Killian Construction Co., Branson entertainer Tony Orlando and a Tennessee partner.

The hotel plans are still being solidified, said Tim O’Reilly, CEO of O’Reilly Hospitality.

“I can confirm that we are in discussions with the Blue Collar group to manage and possibly own part or all of the Hilton Garden Inn in Foley, Ala.,” he said by email. “We are excited about the project and believe it has enormous potential as a business and tourism center in southern Alabama.”

Foley Economic Development Director Jeff Rouzie said the city plans to begin construction on 16 youth sports fields around the first of April with Killian Construction Co., and a multimillion-dollar highway connector road dubbed Pride Drive is under development.

As part of the city’s larger agreement with developer BC Foley LLC, dba Blue Collar Destinations, the city also would construct a 104,000-square-foot entertainment venue, if two planned hotels are constructed.

The first hotel would be the Hilton Garden Inn, according to Rouzie. Both Rouzie and O’Reilly said that facility currently is in the design phase.

For now, Rouzie said the entertainment center was on hold until financing was in place for development of the hotels.

“The plans are basically done, but we’re on hold until the Blue Collar development group finalizes (hotel financing) and they can prove to us that they are ready to go,” he said. “We are not going to build anything there until we have hotel rooms. That was a part of the deal to begin with, and that is critical to make that multiuse facility work.”

Springfield attorney Richard Walters of Spencer Fane Britt & Browne LLP declined to comment on financing issues on behalf of Killian Construction, but said updates would be available in a few months. Orlando could not be reached for comment by press time.

In all, the entertainment venue is estimated to lean on $70 million in city, state and federal financing, according to Springfield Business Journal archives. Centered around a man-made lake, plans also call for a 100,000-square-foot sports and events center, a NASCAR-themed attraction, an RV park for 170 campers, the youth sports fields, 15 carnival-style rides and retail space.

Blue Collar comedians Jeff Foxworthy, Bill Engvall and Larry the Cable Guy are not partnering in the project, but have sold naming rights to the developers, according to SBJ archives. Killian Construction CEO Bill Killian has said singer Orlando helped arrange that agreement, which included tentative plans for themed restaurants.

Despite reports in March from local news source AL.com that the Blue Collar comedians were no longer involved, Rouzie said the city’s plans are still a go. He said the city has long been focused on developing the youth sports market, and the entertainment component is a bonus.  

O’Reilly said construction on the Hilton Garden Inn in Foley should begin by mid- to late 2015.

Evansville moves
Conference center and hotel plans in Evansville, Ind., are back on track after months of delays, according to HCW’s Huffman.

“The project, when it went to bid, came in at $6 million to $7 million over budget, so we had to go back and redesign,” he said. “We’ve done that now. The project is back on and financing is secured.

“It just went from a 10-story building to a five-story building. We just spread it out and saved a bunch of money in high-rise construction.”

Construction on the 240-room hotel, down from the original 244, is slated to begin Sept. 1, he said.

In January, the company announced the project was on hold because of an $8 million gap in financing. Public and private sources funded $70 million, but actual costs were shaping up to be $78 million.

“A lot of it was due to new seismic regulations that came out for earthquake areas. And Evansville is right in the heart of the New Madrid fault,” Huffman said, adding union requirements also added to costs.

“There was going to be an apartment piece to it, and so we ended up eliminating that. That gave us enough land to spread the hotel out.”

And beyond
In Chandler, Ariz., a suburb of Phoenix, HCW is erecting a 303-unit, four-story luxury apartment complex. The $42 million project is about half complete, Huffman said, and should be wrapped up by September.

“It’s right next door to the second-largest mall in the state, and it’s in the center of all the high-tech jobs. Intel is a huge employer in Chandler. It’s right next to the GM tech center, which has 1,000 employees. Wells Fargo is adding 2,000 employees down the street two miles. It’s a growing area of the valley,” he said. “We just follow the economy. There’s no boundaries. I prefer to stay west of the Mississippi. Indiana is an exception.”

Just down the road in Desert Ridge, Ariz., O’Reilly Hospitality is building a 121-room Cambria Suites hotel slated to be finished in spring of next year, according to OHospitalityManagment.com.

In Wichita, Kan., HCW has a 184-room, $20 million apartment complex designed by Springfield-based Butler, Rosenbury & Partners Inc. in the works. The design firm also has drawn plans for both iterations of the Evansville hotel and garage.

HCW also plans to develop a $100 million project in the Dallas area, the details of which Huffman declined to disclose.

Also going up in the Dallas metropolitan area are two projects by O’Reilly Hospitality Management. One is a 129-room Cambria Suites the company is building with Choice Hotels in Plano, Texas. BR&P has designed the other: an Embassy Suites Hotel & Convention Center in Denton, Texas. The roughly $60 million project comprises a 318-suite hotel with an adjoining Houlihan’s restaurant and an 80,000-square-foot convention center. Both are slated to be finished next year.

Geoffrey Butler of BR&P said his firm is staying busy with 19 out-of state projects for a handful of regional clients.

“We are happy to be able to serve this reinvigorated market after the beating everyone took back in ’08,” Butler said by email.[[In-content Ad]]