A hotel, convention center, and restaurant will be built on the Arkansas State University campus.
The ASU Board of Trustees has approved a resolution that will allow O'Reilly Hospitality to construct the new facilities on 11 acres of land at the site of the former track and field program.
The agreement is a ground lease agreement that allows for the construction of a 200-room Embassy Suites Hotel, a convention center of 30,000 to 40,000 square feet, and a Houlihan’s Restaurant and Bar on the Jonesboro campus.
O’Reilly Hospitality and Arkansas State University will enter into a 50 year lease, with an option for O’Reilly to renew for an additional 40 years.
O’ Reilly will make no payments to Arkansas State University the first three years. Starting year four, Arkansas State University will be paid $250,000 a year through the 19th year of the lease.
The new construction will also allow Jonesboro students to work at the complex toward a hospitality management degree program. Arkansas State would also be eligible for additional payments if certain large meetings take place at the hotel and convention center.
The project will be worth between $35 and $50 million. Some of the trustees commented that it was best for the students to help recruit perspective students, as well as educate students in a hospitality program. Two of the trustees, Neil Crowson and Howard Slinkard, voted against the resolution.
The hotel, convention center, and restaurant is expected to be open in 2018.
Here is a copy of Neil Crowson's Statement:
"I have spent countless hours considering this initiative and how I would vote. I would like to first thank our administrative team for their efforts in consistently seeking ways to diversify revenue for our university. I do appreciate the proactive mindset of our team. However, I am not convinced that this is the correct next step in our development as a university. There are many reasons why I have concluded that I cannot vote for this initiative. These reasons include financial considerations, strategic development, and timing. I am one who will always speak up and express my ideas and concerns . However, if my colleagues differ with me and approve this project, I will support the university as I always have and will work alongside my colleagues to ensure this, and every other initiative we undertake, will be successful."
