After numerous delays, a three-star Westin hotel at Denver International Airport could be done by late 2013.
On Wednesday, the Denver City Council’s Economic Development Committee agreed to hire M.A. Mortenson Co. as the hotel’s general contractor for $150 million.
The total $179 million cost — including construction plus design and engineering fees, equipment, furniture and fixtures — would be financed with general-aviation revenue bonds and federal stimulus money, DIA deputy manager Patrick Heck told the committee Wednesday.
Revenue from the hotel would pay off the bonds, and no general-fund money would be used, Heck said.
The hotel will create 1,000 construction jobs, create 225 permanent hotel jobs and give the city $1.5 million to $2 million annually in lodging-tax revenue, according to DIA officials.
The hotel will sit on top of the FasTracks train station on the south end of DIA’s terminal. Groundbreaking on the project is scheduled for the beginning of next year.
In addition to 500 rooms, the hotel will offer more meeting space than at most hotels, said DIA aviation manager Kim Day.
“We would market it as a place to fly in, hold a meeting and fly home in time for dinner at night,” Day said.
The FasTracks train, scheduled for completion in late 2016, “is a wonderful package deal,” Day said.
DIA would own the hotel, with Starwood Hotels & Resorts Worldwide operating it.
Starwood would be paid a fixed amount with additional income placed in reserve for hotel upgrades and directed to DIA’s bottom line, Heck said.
Heck said current negotiations require Starwood to contribute $3.5 million. An agreement is expected to be finalized Friday.
Tom Clark, executive vice president of the Metro Denver Economic Development Corp., also addressed the committee about headquarters-retention efforts.
Clark said DIA — with connections to 270 markets and two nonstops to Europe — provides critical global access that helps to attract corporations.
“Clean-tech sector” companies are a big target for recruitment, Clark said, as is the biopharmaceutical industry.
“We need to land an elephant,” Clark said, referring to attracting a major biopharmaceutical firm. Budget- pinched California is an “obvious” site for recruitment, he said.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
Hotel/train station status
• Agreement completed with RTD on train station
• Soliciting proposals for general contractor for Peña Boulevard train bridges and utilities
• Negotiating with Starwood on hotel contract to be submitted to the City Council in June
• Development concepts for train station and hotel to be unveiled this summer
• RTD concessionaire to be selected next month
• Overall project-finance plan is in progress, with completion in late summer
• Bonds for hotel to be sold early this fall
Source: Denver International Airport
