Posted on Jan 28, 2004

Local News - January 28, 2004 Montgomery, Alabama City, RSA ink 4-star hotel deal By William F. West Montgomery Advertiser With the stroke of a pen, the city of Montgomery and the Retirement Systems of Alabama made the first moves toward transforming an aging Civic Center into a convention center, four-star hotel and fine arts theater. Mayor Bobby Bright on Tuesday signed a letter of intent with RSA and Alabama Real Estate Holdings for what is anticipated to be a more than $80 million joint venture. Asked how he felt, Bright said, "Relieved to a degree, but now the work really starts. This gives us the opportunity to start negotiating, start doing the pictures, the architectural designs." "Hopefully, we'll be able to pull that off," David Bronner, RSA's chief executive for approximately 30 years, said when reached at his home Tuesday evening. No timetable has been set for completion of the project. "Even if you fast track it, it'll still be a number of months before you start moving dirt around," Bronner said. "You can do a little bit, but you can't do a whole lot until you get the architect -- and that takes time." Bronner said the Civic Center, which opened along Bibb Street in 1976, was nice at the time, "but it's really dated." "You've got to get with the current program to be competitive with other facilities," he said. "That's what enhances the quality of life, and that's what attracts more industry, which attracts more jobs, which does everything." The city's central business district is already the scene of much investment -- including construction of a $26 million minor league baseball stadium at the corner of Coosa and Tallapoosa streets and the debut last fall of a $2.5 million amphitheater. Crews also are building a parking lot near the baseball stadium, and plans call for construction of an approximately $15 million structure to house a bus station and car park across from Union Station. The next steps for Bright and Bronner on the convention center project will be signing the contracts for construction of buildings as well as the management agreements. Reaction to the news from downtown business owners has been positive; one City Council member, though, is withholding judgment. "I just need to read it and digest it before I start making comments," said James Nuckles, City Council President pro tem, when reached Tuesday night. He said he is going to reserve giving his opinion until he has more time to examine the documents. Others are more upbeat. "I'm extremely pleased to hear it," said John W. Morgan, president of GroSouth, headquartered in an old-style feed and seed store in downtown Montgomery. "I think it will be a great boost, not only to downtown, but to Montgomery and central Alabama in general," Morgan said. "It'll enable us to bring a lot of conventions and meetings here that we have just not been able to handle." "That's fantastic," said Alan Weil, owner of Weil's Inc., which sells urban fashions. "I just think it's going to bring more people to downtown -- and that, in combination with the baseball team, should do nothing but rejuvenate downtown and bring more people down here," Weil said. "I'm thrilled," said Rosa Zimmerman, who opened the Pottery Loft CafÈ several months ago. "I'm excited to hear that." County Commissioner Lynn Gowan said, "It's probably the single biggest thing that's probably going to contribute to the development of our tourism and convention industry. It's something that should have been done two to three years ago." County Commissioner Elton Dean, an Alabama State University trustee, said he doesn't mind the complex being near the campus. "We need a four-star hotel, and we need to have all the other amenities that go with it because we're going to be big in tourism," he said. "I think it's a very good move." "I think it's tremendously exciting because I think it has such potential," said Virginia Whitfield, community affairs director for Whitfield Foods, which markets Alaga Syrups and has been in business for nearly a century. "I think it's wonderful to have that backing," Whitfield said of Bronner's support. Bronner, 59, took a nearly broke retirement fund during the George Wallace era and produced investments in the billions of dollars. Bronner opened a set of RSA buildings in downtown Montgomery and later added the 22-story RSA Tower. RSA funds were used to construct the Robert Trent Jones Golf Trail and revitalize the Grand Hotel along the Alabama Gulf Coast. RSA funds also support television stations and newspapers in the region. Alabama Real Estate Holdings, an affiliate of RSA, came to City Hall last summer expressing an interest in making a $29 million loan to the city to expand the Civic Center. Bright said he expects Alabama Real Estate Holdings will provide up to $54 million for the new hotel. "What we've tried to do is diversify the portfolio so that we wouldn't be strictly at the whims of Wall Street," Bronner said.