Albany asked to rethink project now estimated to cost $300 million

The state is asking the Albany Convention Center Authority to re-examine its plans with an eye to possibly downsizing. The request came after board Chairman George Leveille recently estimated the project to build two hotels and a convention complex could cost $300 million, $100 million more than originally forecast.

"We've got to start thinking about how we construct this thing: Do we downsize it?" Leveille said. "We'll look at it and we'll give our opinion as to whether it's viable."

Jeffrey Gordon, a spokesman for the state Division of Budget, confirmed that message had been delivered during a recent meeting.

"We are asking them to review the project to see where they could achieve efficiencies or streamline the project to reduce costs," he said.

The plans call for a full-service hotel with 250 rooms and a 150-room hotel with more limited amenities. The convention center would include a 60,000 square foot exhibit hall, a 25,000 square foot room that could be used for multiple purposes, and a 22,350 square foot ballroom. A skyway would connect it to the county-owned Times Union Center for additional exhibit space.

The project is proposed to be built on Hudson Avenue between Liberty and South Pearl streets.

To be successful, Leveille said, it has to be built to attract the right mix of organizations, and reducing its size could make that unattractive.

"It is not as simple as just downsizing," he said.

The funds for the project would come from a $75 million state grant and a 3 percent hotel tax. The city also is being given $192 million in state aid that can be used to guarantee bonds. The increased cost estimate means the authority will have to seek additional funds, Leveille has said.

The authority is getting close to naming the three key firms that would determine a more exact cost estimate: a construction manager, a design team and operators for the hotel and convention center.

The board has asked two companies to provide proposals to oversee construction: Turner Construction and a partnership between Gilbane Inc. of Providence, R.I., which has an Albany office, and the local firm BBL Construction Services.

Another two firms are finalists to lead the design team: HNTB Architecture of Kansas City, Mo., and a joint venture between Atlanta-based architects Thompson, Ventulett, Stainback and Associates and the Albany firm of EYP.

Both contracts are expected to be approved by the board next month.

Michele Vennard, a member of the authority board, will recuse herself from voting on the design team because two firms have said they may use Clough Harbour & Associates, which is led by her brother, attorney Robert Ryan told the board.

Three operators were asked to submit detailed proposals for operating the hotel and convention center. One firm has proposed to run just the center.

The three that propose to run all the properties are: Waterford Hotel Group of Waterford, Conn., which operates the convention center in Hartford; local firm BBL Development Group teamed with Ocean Hospitalities Inc. of Portsmouth, N.H.; and Starwood Hotels and Resorts Worldwide Inc. of White Plains.

SMG of Philadelphia, which runs the Times Union Center, has applied to run just the convention center.

A request for quotes should go out next week, said authority board member Brad Rosenstein. They are due back the same day the convention authority next meets, Sept. 29, so a selection probably won't be made until October.

"It's the most critical decision of all for the future of this project," Rosenstein said.

Once the contractors are picked, Leveille said, they will begin to put together more precise numbers on costs.

"The last stage is really to develop our cost estimates," he said.

With those in hand, he said, the authority will be in a better position to decide on what should be built and how to pay for it.

O'Brien can be reached at 454-5092 or by e-mail at tobrien@timesunion.com.