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GAYLORD WITHDRAWS ITS CHULA VISTA BAYFRONT PROJECT

Gaylord Withdraws Its Chula Vista Bayfront Project
 
 
         At 2:14 p.m. today, Gaylord Entertainment sent a letter to Mayor Cheryl Cox, announcing the company’s decision to withdraw its proposed plan to build a billion dollar convention center and resort hotel along the Chula Vista Bayfront. In its letter, the Tennessee-based company wrote, “It is with deep regret that we inform you, that Gaylord Entertainment will no longer be pursuing the Chula Vista Bayfront project.”
        
         During a personal phone call to Mayor Cox at 1:35 p.m., Gaylord’s Chairman and Chief Executive Officer Colin V. Reed, expressed his respect and gratitude for the support of the City and Port over two years of project planning. Reed explained that the unreasonable demands by the Building and Construction Trades Council rendered the project unfeasible.  
        
         Over the past year and a half, Gaylord has been negotiating with the City and Port on a financing plan. Significant progress has been made in those discussions. On a separate, but parallel track, the company has been engaged in discussions with labor groups.  Those talks broke off a week ago, and despite encouragement by community leaders to resume negotiations, no additional discussions took place.
 
         “Robbing the people of Chula Vista of this extraordinary project is unconscionable, “ said Mayor Cox. “This is a travesty. Chula Vista has lost jobs. We have lost
         improvements to our waterfront. Opportunity has been taken from the people of this city.”
--
        
         According to Gaylord, labor representatives insisted on limiting construction bidding to only union contractors and subcontractors, a move that would have excluded non-union workers from the construction project. Gaylord estimated that labor’s proposal would have added between $50 million and $75 million to the project’s cost.
 
         Port and city staff will meet next week to discuss how today’s announcement will impact the Chula Vista Bayfront Master Plan. 
 
 
Published OnBy
Saturday, July 7, 2007 15:56:24Steve Lemack
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