An Illinois developer is planning a $25 million hotel and convention center project in Jonesboro with a scheduled completion date as early as September 2016.
Keller Enterprises of Effingham, Ill., was in Jonesboro this week to discuss the project with Mayor Harold Perrin. Financing was approved through First Community Bank after nearly seven years of working to bring the project to Jonesboro, Chuck Keller said.
Plans call for 30,000 square feet of convention center and meeting space on McClellan Drive, previously the site of the Arkansas Services Center. Keller said the hotel, a Hyatt Place, will offer about 150 rooms.
Keller Enterprises has built hotel and convention center projects in Florida, Iowa, Minnesota, Illinois and North Dakota. Site work in Jonesboro is scheduled to begin in the next 30-45 days, Keller said.
"We've always wanted to build there," Keller said. "Getting a local bank to help with the project will help make this a reality. They've worked along with us the whole time. They've been very good. I can't say enough about the city. They've been very helpful in guiding us."
This is the second announced convention center and hotel project in Jonesboro this year. Arkansas State University announced in February that it is partnering with O'Reilly Hospitality of Springfield, Mo., on a $35 million-$45 million project on campus.
Keller and Arkansas State had previously discussed an on-campus project. Because of its economic and population growth the last decade, Keller said Jonesboro is "the prefect location" for a convention center. However, he said the town was only big enough for one such project.
Jonesboro has pledged to fund the parking lot for the development. Perrin said in February that the city had about $500,000 it could put towards infrastructure for a hotel and convention center project.
If money would be allocated for both projects or only one is unclear. Perrin couldn't be reached on Wednesday, but told the Jonesboro Sun that having Keller committed to building in Jonesboro was "a blessing."
Arkansas State spokesman Jeff Hankins said the university is still planning to go forward with its project, which will have an estimated 200 rooms and 40,000 to 50,000 square feet of conference center space. Also in the works is a hospitality management major at Arkansas State.
"We continue to pursue a public-private partnership with O'Reilly Hospitality Management LLC of Springfield, Mo., that will bring to the A-State campus a high caliber hotel and restaurant with appropriate meeting and conference space," Hankins said. "It will also serve students in our planned hospitality management program. Like many campuses, we have a tremendous need for this type of asset.
"When the city failed to close a deal on a conference center previously, we worked with city leadership to expand our own project to accommodate community needs," Hankins added. "Now, this may not be necessary as we move forward."
Business on 09/03/2015