City gives Hammons notice on downtown hotel project

Developer John Q. Hammons has 45 days to start construction on his planned downtown hotel, according to a letter sent Monday by the city of Springfield.

John Q. Hammons Hotels & Resorts purchased 1.7 acres and the adjacent Jordan Valley Car Park on St. Louis Street in 2008, according to previous Springfield Business Journal coverage, with the intent to build a 150-room hotel on the property. At the time of the purchase, Hammons asked for an extension until April 1, 2010, to begin construction due to difficulty obtaining financing for the $50 million project.

A month after the deadline passed, City Manager Greg Burris sent a letter Monday to Hammons Senior Vice President of Architecture Steve Minton, informing him that the company was in breach of its agreement.

"Developer has 45 days from the date of this letter to commence and continue construction of the improvements as specified in the parties' agreement," the letter states. "If developer fails to cure this breach, the city will ... take action to exercise its rights as defined in the parties' agreement."

Hammons and the city have been negotiating details of the agreement for the property for the last 18 months, according to the letter, and the city had reminded Hammons' organization multiple times about the deadline.

The city has the right to repurchase the land for $1 if the agreement falls through, according to city spokesman Mike Brothers.