Gulf State Park Hotel and Conference Center Initiative

 

Questions & Answers

 

1.       Q:  Why build back the facility at all? Why not just clear the rubble and preserve the open beach?

A: Our plans are to build a first-class facility that will bring dollars and jobs to Alabama and be a great addition to our State Parks. Alabama’s Gulf State Park is one of our state’s greatest economic and environmental assets.

 

  1. Q:  Why not rebuild a State Park lodge?

A: We have the opportunity to bring a first-class hotel to Alabama, attracting larger convention groups back to Alabama’s Gulf Coast that are currently going to Gulf destinations in other states. The new facility will be a great adjunct to the crown jewel of the State Park system and an economic engine for our State and the Gulf Shores/Orange Beach area. The project also allows Auburn University to advance and expand student learning opportunities through Gulf State Park and DCNR programs.

 

  1. Q:  Will the average Alabamian be able to afford a room at the new hotel?

A: Rooms will be priced competitively and we believe there will be a strong market for the hotel. No hotel can afford to out-price itself. In addition, we will have 20 cabins in the park and we are currently building 11 more in addition to 496 modern and primitive camping sites and RV locations for additional accommodations within in the Park.

 

  1. Q:  Once private development starts, will it be difficult to stop expansion?

A: This project is designed for a very well-defined and finite site plan. Anything beyond that is not part of this process. Furthermore, Governor Riley plans to introduce legislation during the next regular Session to limit any further sale or lease of Gulf State Park property.

 

  1. Q:  Who will own the land?

A: The Alabama Department of Conservation and Natural Resources. The people of the state of Alabama will retain ownership of the property. DCNR will lease the land to Auburn University. Auburn will then engage a developer for the leased site.

 

  1. Q:  What are the terms of the land lease?

A: We have received requests for information (RFI) from interested developers. Auburn will seek requests for proposals (RFP) from developers. The lease agreement with Auburn has not been written. The terms of the lease will be made public at the appropriate time.

 

  1. Q: Have any contracts been signed for the hotel project?

A: At this time, no contracts with Auburn University, West Paces Hotel Group or a developer have been negotiated or signed. This process will be made public when the project is further along.

 

  1. Q:  Why is Auburn involved?

A: Auburn University has already experienced a successful academic/business partnership through its Auburn University Hotel and Dixon Conference Center partnership, where students have hands-on opportunities to learn about all aspects of the hospitality/hotel and restaurant industries. With this hotel initiative, there will be potential opportunities to partner with DCNR in areas such as marine science, biology, business, turf management, forestry and wildlife, and eco-tourism.

 

  1. Q:  Who will manage and operate the new facility and convention center?

A: Auburn University and DCNR will select a developer and Auburn will partner with an operator. At the Auburn University Hotel, the operating partner for that successful model is the West Paces Hotel Group. However, DCNR has not negotiated or signed an agreement with West Paces Hotel Group for the proposed hotel project. As the RFP process moves forward, more information will become available.

 

  1. Q:  What is the size and scope of the hotel?

A: The proposal calls for 350 rooms that will occupy a smaller footprint than the previous lodge which included 144 rooms. A smaller footprint means more of the beach will be given back to the citizens and visitors of the park.

 

  1. Q:  What is the environmental impact of the development?

A: We are extremely conscious of the environmental impact. We will protect and preserve the environment and have all necessary permits to operate. DCNR and Auburn University clearly understand and share the environmental sensitivity concerning our natural resources.

 

12.   Q:  What is the expected economic impact of the new hotel and convention center?

A: The total economic benefit of the project is expected to bring in approximately $65 million annually, generate over 1,600 new jobs (400 at the hotel) and produce nearly $3 million each year in total tax collections. A great percentage of Alabama convention dollars are going out-of-state. Building a first-class facility will help keep tourism and convention dollars in-state.

(2001 Alabama Gulf Coast Events Center Feasibility study from the Strategic Advisory Group, found at www.outdooralabama.com)

 

13.   Q:  Amendment 617 stipulates that State Parks must be operated by DCNR. So, how can a private entity operate a facility on state property?

A: This land is deeded to the state of Alabama and not to the State Parks division. The land will be operated in conjunction with Gulf State Park, but is not State Park property. Also, this part of the development is not using proceeds of a bond issue. DCNR is confident that legal issues relating to the Martin Amendment are not an obstacle.

 

14.   Q:  How many new jobs will be created? How many State employees will lose their jobs?

A: The project will be a catalyst for new jobs, and a significant net gain in jobs can be expected. At the present time, we can’t say specifically how many jobs because the project is in the very early stages. However, the feasibility study for this project forecasts a potential economic impact of over 1,600 total new jobs with 400 employed at the proposed hotel.

 

15.   Q:  What about public access to the beach and any restrictions on the beach front?

A: There will be no restrictions to beach access within the Park. Increased beach access will actually result from plans to add additional walkovers, picnic areas, restrooms and public access at the pier. The Park contains more than three-and one-half miles of total beachfront, and we will continue to attract visitors to the Park because of its beaches, facilities and access.

 

  1. Q:  Who will manage the RFP process and award the bid?

A: The Department of Conservation and Natural Resources is partnering with Auburn University on this unique opportunity. Both DCNR and Auburn University have significant equity in making the right decisions as we move through this process.

 

 

17.   Q:  Explain the financing on this project and how much State money will be used?

A: At this time, there is not an accurate answer to this question. Once the RFP process is complete, we will provide more information.

 

18.   Q:  What is the expected annual State income on this project and where will these dollars go?

A: The lease payments from the developer will yield considerable cash flow to DCNR. We will not know the exact terms until an agreement has been reached with a developer. Also, there will be additional revenue from increased lodging taxes, increased sales taxes and increased jobs. The total economic benefit of the project is expected to bring in approximately $65 million annually and produce nearly $3 million each year in total tax collections.

 

19.   Q:  What is the timeline on the process and when do you expect the new facility to open?

A: The exact timeline will be negotiated with the developer.

 

20.   Q:  What is the status of the insurance settlement for damages to the Park by Hurricane Ivan?

A: We expect to receive a substantial settlement with our insurance carriers for damage done to Gulf State Park by Hurricane Ivan. Because the amount of the settlement is likely to be in dispute, our departmental attorneys advised us not to discuss specific claims or amounts so as not to prejudice our position.