The city–financed, city–developed, and city– owned 300–room convention center headquarters hotel deal soured in early 2004 when it approached $72 million in total development cost. The proposed Metropolitan Columbia Convention Center Headquarters Hotel ratcheted up to over $240,000 per room in total development cost, and the city decided not to develop an assured money loser. Atlanta–based architecture and engineering firm Stevens & Wilkinson (S&W), led by Columbia architect Robert T. Lyles, was the lead member of the architecture team for the headquarters hotel.

Having dropped the first deal, the money loser, the city invited S&W and its team to resubmit a second, all–private proposal in spring 2004. The first proposal’s developer partnered with S&W, Edens & Avant, asked not to be included for the second proposal. The second proposal was presented by Columbia real estate executive Charles Gary, who is also suing the city. Gary’s suit is with Dallas developer Garfield Traub, and they demand $2.1 million.

Gary, Garfield Traub, S&W, and their Hilton representatives presented an all–private proposal, the same hotel, as ready for construction once the city took the cost down to $40 million, a number for the 300–room hotel the development team could live with and probably turn a profit. The city was told just months earlier the same hotel was an acceptable deal at total development cost of at least $72 million, but the development team couldn’t carry it if it cost any more than $40 million.

The city said no thank you and chose Windsor/Aughtry’s 222–room full–service Hilton. The city volunteered Windsor/ Aughtry a $3 million subsidy, and Windsor/Aughtry accepted.

S&W filed suit last week against the City of Columbia for $1.3 million, having already collected about $700,000 in design fees in late 2003. Stevens & Wilkinson was not the designer, however. Another Atlanta–based architecture firm, Thompson Ventulett Stainback, was designated as the designer, and TVS presented the hotel designs to the city.

The memorandum of understanding with the city signed by S&W’s Robert T. Lyles and the city manager in late spring 2003 says on page 1 under “General Conditions”: “...Notwithstanding anything herein to the contrary, if the City determines that it is not feasible to proceed with the Hotel project it shall have no liability under this MOU.”