Credit crunch delays St. Regis project construction
Dallas Business Journal - by Bill Hethcock Staff writer
Construction on a St. Regis Hotel & Residences at a Turtle Creek site in Dallas has been delayed because of the credit crunch and the recession, but plans for the $200 million project have not been scratched altogether.
The Dallas Plan Commission on July 23 extended the development schedule on the proposed 22-story luxury hotel/condo tower, meaning its developers must pull a building permit and break ground on it within three years, instead of by the end of this year, as originally required. The project is planned along the Katy Trail, northeast of Cedar Springs Road and Carlisle Street.
City Councilwoman Angela Hunt, who represents the district where the proposed project lies, said the development has been delayed because of difficulty obtaining financing and the softening of the hospitality industry due to the recession. Hunt said she continues to support the project.
“I think it will be a great project that will be beneficial to our tax base and beneficial to the community, while also maintaining quality standards in relation to the Katy Trail and the residents nearby,” she said.
The developer, Los Angeles-based Foch Investments/Development, and the operator, Starwood Hotels & Resorts, could not be reached for comment. St. Regis is one of Starwood’s luxury brands.
Foch Investment’s plans, announced more than a year ago by the Dallas Business Journal, called for 150 hotel rooms and 70 to 80 condominiums. Foch initially hoped to open in time for the Super Bowl in 2011.
That goal is no longer realistic, said land-use attorney Susan Mead, who represents the owners. Mead is a partner in the Dallas office of Jackson Walker LLP.
“The project is still a go,” Mead said. “We’re just waiting for the market to firm up a little bit. We needed some flexibility on the time.”
The lead architect on the project, Andrew Bennett of BOKA Powell LLC, said he remains optimistic the St. Regis Hotel & Residences will be built.
“We’re having ongoing conversations with the ownership side, and we’re just seeing what we can do to be helpful,” Bennett said. “It’s going to take a recovery on the national side to bring back a project like that.”