Bringing the proposed $24 million Courtyard by Marriott hotel project to fruition hinges on securing an additional $1.4 million for the construction of the 125-bed hotel.
The news, delivered by Joseph McCorvey, executive director of the Pine Bluff Convention Center, at a Civic Auditorium Complex Commission meeting on May 22, was the first indication the construction of the long-sought hotel is at risk.
McCorvey also said at the meeting that Go Forward Pine Bluff still owes the convention center money from the King Cotton basketball tournament.
McCorvey explained that the initial hotel bid, finalized two years ago, had increased significantly, and additional funding was now necessary for the project’s progress.
This includes a 32-year, $18 million U.S. Department of Agriculture-backed loan through Farmers State Bank of Harrisburg, Ill. The additional $1.4 million that is needed would cover demolition of the current hotel and architect and administrative fees.
Independent reporting for Pine Bluff & Jefferson County since 1879.
In pursuit of potential assistance, McCorvey has scheduled meetings with development firm The P3 Group this week. Additionally, he has sought assistance from U.S. Sen. John Boozman’s office.
“The mayor has dropped a letter of support for trying to find these funds,” he said. “This is the last hurdle in order to get the project green-lighted.”
The P3 Group, which has had a hand in a number of projects across Pine Bluff, and management group Beechwood Pinnacle Hotels will combine to make a $1.9 million loan as subordinated debt, and $2.9 million from the 2017 Go Forward Pine Bluff sales tax will be used. The city contributed the land valued at $1.2 million.
“I did not want to go back and ask when we got $3 million from the city,” said McCorvey. “I did not feel it would be appropriate to get that money from the city with their budget.”
Despite the uncertainty of building a new hotel, the commissioners concurred on the necessity of demolishing the current hotel structure. The deadline to act, according to McCorvey, for the USDA guarantee is September.
The bank also requires updated versions of the surveys that were conducted last year, as the original ones are no longer valid. Consequently, the bank will not proceed until it receives the new ones.
On the subject of money owed from the King Cotton Holiday Classic basketball tournament, according to a convention center spokesperson, the Pine Bluff Convention Center continues to face financial challenges with a negative balance. The issue stems from the ongoing costs associated with the high school basketball tournament and Go Forward Pine Bluff.
During the meeting, McCorvey reported actual expenses versus revenues. The resulting deficit of $224,107 includes combined expenses and special events highlighting the financial strain on the convention center.
Convention Center Controller Barbara Davis explained the facility had contributed funding to Go Forward Pine Bluff for special events, including King Cotton, because Go Forward Pine Bluff lacked sufficient funds.
According to Davis, the convention center began contributing its own money to Go Forward’s account as early as 2020. Even when the pandemic struck and events were canceled, money had already been spent on securing artists.
In the following year, less money was allocated to support Go Forward’s events, but outstanding bills still needed to be paid, Davis explained.
“We had to cover the cost with our money,” she said.
With the upcoming 2024 King Cotton event in progress, McCorvey confirmed that the organizers had committed to covering all associated expenses. However, despite this assurance, the convention center is still owed approximately $20,000 from the 2023 event.
McCorvey revealed that he had received $50,000 from the city specifically designated for the 2024 King Cotton event. He expressed his desire to allocate a portion of this amount to settle outstanding bills, including a recent invoice for refinishing the basketball court.
“The $50,000 is for the new King Cotton but there are still expenses in the rear that the convention center incurred,” he said. “What I want to do is, if it is the pleasure of the commission, to take the money that we’re owed of that $50,000 and send them the remaining balance.”
McCorvey clarified that the convention center’s court floor had not been redone since 2018 due to a change in sponsorship. Central Moloney Inc. became a primary sponsor in 2023. Commissioners expressed concerns as to why the cost was not covered by the sponsorship. In response, McCorvey said there were not sufficient funds available.
In summary, Davis said the King Cotton organization currently owes the convention center an outstanding balance.
Davis reviewed the financial statements. She explained that the Convention Center’s operating expenses exceeded its income.
Additionally, Davis clarified that while the actual expenses for King Cotton were incurred in 2023, the corresponding invoices were settled in 2024.
For King Cotton, approximately $394,874 was earned, while expenses amounted to $415,445. However, Davis clarified that a negative number does not necessarily indicate a negative account balance.
Due to approximately $73,000 of the convention center’s money being tied into the same special account as the $50,000 earmarked for King Cotton 2024, McCorvey intends to transfer the convention center’s funds into their Bureau account specifically for convention center projects. Furthermore, McCorvey seeks to recoup the outstanding $20,000 owed from the $50,000.
Davis stated that they wanted to close the account because the money was not owned by Go Forward. The commissioners recommended that the city be consulted before taking any action with the funds in question.
“This year we are not supposed to be responsible for anything,” she said.
In response to the commissioners’ inquiry regarding the fate of the money sent from the city, Davis relayed that Go Forward Pine Bluff CEO Ryan Watley had requested its transfer to GFPB.
“Ryan is not wanting us to get the money back. He wants to get the full $50,000 and we later get our money back,” she said. “The $20,000 is King Cotton’s expense. We need to be paid.”
The commissioners convened, made a motion, and voted affirmatively to postpone any money transfers until they engaged in discussions with representatives from the city and the GFPB.