HCW Evergreen pulls out of downtown hotel competition

Rick Huffman, CEO of HCW Evergreen LLC, sent a letter dated Sept. 14 to City Manager Bob Cumley that outlined the Branson firm’s decision to withdraw from the field of developers interested in building on 1.7 acres between the Springfield Expo Center and Jordan Valley Car Park.

In the letter, Huffman stated that the decision to withdraw was based on two factors: BKD LLP accounting firm’s decision to relocate to the southwest corner of St. Louis Street and John Q. Hammons Parkway, and the restrictive conditions of John Q. Hammons’ long-term lease with the city to operate the expo center.

“We read the lease on the expo hall … and based upon on how that lease was structured with Mr. Hammons, I think it makes it very difficult for us to make a hotel and new ballroom work and connect to the (expo center),” Huffman told Springfield Business Journal. “We just don’t want to play the game.”

City spokeswoman Louise Whall said the city was sorry to see HCW Evergreen withdraw its proposal. A proposed term sheet with the developer recommended by city staff for the convention-center hotel project could go before City Council as early as Oct. 8, Whall said.

In July, the Springfield Tax Abatement and Tax Increment Financing Commission forwarded four development proposals to city officials for further negotiations. HCW Evergreen, BC Development Co. of Kansas City and John Q. Hammons Hotels & Resorts LLC each submitted hotel-office tower proposals while Opus Northwest LLC, also of Kansas City, pitched a headquarters building for BKD and a “pad” for a future hotel.

Hammons Hotels is apparently the only firm still actively negotiating with the city to build a hotel. City officials say they’ve lost contact with BC Development, whose chief principal, Rick Baier, could not be reached for comment.

“We take silence as they’re out,” City Attorney Dan Wichmer said of BC Development. “We asked for information and didn’t get it.”

Huffman also said city officials have indicated to him that BKD has been negotiating separately with Opus Northwest to build its new headquarters building on a Hammons-owned parking lot not far from the former arena site. City officials declined to comment about off-site plans involving BKD.

See SBJ’s Oct. 1 issue for more about the downtown hotel project.