N.C. State Hotel Plan Supported

HVS International, a hotel and hospitality consulting firm, reviewed market studies previously conducted by PKF Consulting in order to produce its own recommendation for the 1,334-acre site adjacent to N.C. State's main campus in Raleigh.

Expansion plans include the building of an executive conference center with a hotel and a golf course.

Greg Hartmann, managing director of HVS, said the firm suggested that N.C. State delay the opening of the conference center for one year, allowing more time for the economy to recover from the impact of the Sept. 11 attacks.

"We were in general agreement that the project was worthwhile and stable," he said. "But it's going to take longer to get there."

Trustees heeded the HVS recommendation, opting to push site expansion back to the first quarter of 2005 -- one year after the initial completion date projected.

Expansion under the new plan will also cost $14 million less than earlier versions.

"We recommended that they try to reduce the cost of the project," Hartmann said. "That would improve the feasibility."

Stephen Jones, vice chancellor for extension and engagement at N.C. State, said the board trimmed costs by eliminating a health and fitness center and outdoor swimming pool at the hotel and by downsizing conference space by about 24,000 square feet.

The board also delayed the opening of a golf clubhouse until the sixth year of the course's operation.

The conference center initially will be funded by appropriations allotted to N.C. State by the N.C. General Assembly. By its fourth year, the center will be funded by revenue bonds secured by the hotel and not by taxpayers' dollars, Hartmann said.

He added that the Centennial Campus might aid the state's struggling economy.

"The upscale convention center would induce demand to the area because there is no comparable facility," Hartmann said.

Jones agreed. "Universities across the nation are envious of the campus and its conference centers and hotels," he said.

Hartmann admitted that the conference center will pull some business away from other local hotels, but he also said that it will bring in nearly 17,000 new rented rooms per year over the first four years.

The UNC-system Board of Governors and the N.C. Council of State, composed of top executive officials, now must review the project.

The State & National Editor can be reached at stntdesk@unc.edu.