Mayor Mike Daniels and city staffers pitched the Pleasant Grove site - near a new freeway interchange - to county commissioners Tuesday, arguing the planned $101 million hotel and convention center would serve a market unmet in Utah County.
Pleasant Grove (population 29,000) is the latest Utah County city hoping to tap county treasuries for a convention facility.
Convention sites also are being offered on downtown Provo's Center Street, at Orem's McKay Events Center and Lehi's Thanksgiving Point.
But Daniels said the Pleasant Grove site, which would be funded mostly by developer John Q. Hammons Hotels and Resorts, isn't vying against these other proposals.
"We do not see this as a competitive move; we see this as an additive move," Daniels said.
As part of Pleasant Grove's proposal, Hammons plans to build a 320-plus-room Embassy Suites Hotel with an adjacent 220-room Hilton or Marriott hotel.
Pleasant Grove officials are asking the county for hotel, restaurant and car-rental tax revenues, along with the additional taxes that would result at the 50-acre site where the 116,000-square-foot convention center would sit.
Daniels said the plan is for Pleasant Grove to bond to buy the needed land, then gift the property to Hammons.
The bond, which also would cover infrastructure improvements, then would be paid back using the requested county tax revenues, along with money from Pleasant Grove and the Alpine School District.
Jason Burningham, financial adviser to Pleasant Grove, said the total repayment of the bond would be just under $40 million, with Alpine kicking in $8 million, Pleasant Grove $13 million and the county $18 million.
Commissioners seemed open to the proposal Tuesday. But that doesn't mean they are ready to approve it.
When asked if Pleasant Grove's plan is more likely to be funded than other convention sites, commissioners ducked.
"It's not competing for potential county funds that may go to other centers," Commissioner Steve White said.
Commissioner Larry Ellertson says the edge may go to Pleasant Grove's proposal, thanks to Hammons' investment. But he added that commission approval of the project doesn't necessarily shut the door to another county-funded convention center.
"It doesn't mean that the others wouldn't be supported, as well," Ellertson said.
Groundbreaking on the Pleasant Grove project is set for May 2007, but could begin as early as February, Daniels said. It is expected to open in spring 2009.
A study by the Salt Lake City investment-banking firm Lewis, Young, Robertson & Burningham said the two hotels are projected to generate $41 million annually in room revenues, while the convention center would churn nearly $10 million into the economy.
With the project set to move forward, Daniels is eager to secure the funding.
"Time is of the essence," he said.
thollingshead@sltrib.com


