Hotel Discord: Businesses oppose convention center finance plan

HARLINGEN — Michelle Lopez sees the future convention center and attached hotel as direct competition.

The sales manager at the Courtyard by Marriott isn’t alone in that thinking.

And it goes a step beyond.

Local hotel managers believe the city wants them to help fund their future competitor.

The executives, those like Lopez, say they don’t want their hotel occupancy tax money to help pay off the debt of the $14.8 million convention center because it would be attached to a 150-room Hilton Garden Inn.

But Mayor Chris Boswell called the concern unfounded, arguing the convention center will bring more business to all the city’s hotels.

The city plans to use $3.8 million in hotel tax revenue to help pay off taxable certificates of obligation used to build the convention center.

As part of the finance plan, the Harlingen Community Improvement Board would fund $9.7 million to help pay off the debt over a 20-year-period.

“We would be funding our own competition,” said Eddie Aguilar, general manager at the Hampton Inn & Suites.

Lopez said her hotel would compete with the Hilton Garden Inn for the same services, including a restaurant and bar.

“That would be considered a direct competitor,” Lopez said. “It really is the hotels’ money. You’d be using other hotels’ money to support that. It’s kind of like our investment.”

Saarang Rama, owner of Country Inn & Suites, said the convention center would book rooms for the Hilton hotel.

Under an agreement, developer BC Lynd would fund construction of the hotel while operating the convention center.

Meanwhile, the city would build the convention center, which would be attached to the hotel.

“The operator will have control over any conventions coming into town,” Rama said. “The private entity will look out for itself. After it books its hotel or reaches an occupancy level, that’s when other hotels will be exposed to any overflow.”

Boswell agreed BC Lynd would book conventions.

“The operator has to schedule and know what’s coming,” Boswell said.

But he said all of the city’s hotels would vie for guests attending conventions.

Boswell said the city’s Convention & Visitors Bureau would help attract conventions aimed at bringing business to all the city’s hotels.

“The Convention & Visitors Bureau will be doing the marketing for the city of Harlingen,” Boswell said. “They’re not going to favor one hotel. The convention center will generate more heads in beds in the community than we generate now. As the convention center benefits, the hotels (benefit).”

Rama said Boswell made “valid points.”

But the mayor’s comments didn’t change his mind.

“No matter which way we try to look at it, if you’re the owner and operator, what are you going to do?” Rama asked. “You’re probably going to push your property first.”

Hotel managers also argued the city failed to include them in planning for the convention center.

“Maybe some forum could be put together where we can open up some dialogue to give everyone some piece of mind, a better understanding of how it’s all going to come together,” said Art Kalifa, sales director at Residence Inn by Marriott.

“There are a lot of questions. I would like to know. We’re all for growth and expansion in the city of Harlingen. We’re hopeful and optimistic that all that is being done is to help develop the city of Harlingen.”

But Boswell said the city’s hotels have not contacted him or City Hall to ask about the project.

“I haven’t had a single hotel operator call me to offer suggestions or make complaints,” Boswell said.