Part II: Texas State University – New Hotel Conference Center

Posted by Staff | @CorridorNews | @Corridor_Sports

On November 21st we published an article on Texas State University hiring a consultant group to do a feasibility study regarding a hotel & conference center built on the corner of Aquarena and Charles Austin Dr.

Below is an interview we did with William Nance, VP of Finance, and Support services to follow up on this story.

Currently you have hired a consulting firm to do a feasibility study, what would be the University’s next step after receiving the completed study?

That is the first step in the process. Then it depends on what the study comes back with. If it were feasible for the University, the next step would be to do a request for proposals and see what comes in from developers. Because what we will do is a ground lease to a third party. We don’t want to be in the hotel business or in the real estate development business. We would do a ground lease on that site, so we will need to see if people who are going to put up the money then agree with the consultant. We would have to review the financial terms of all of that and take it to our board of regents.

Why does the University want to build a hotel & conference center?

Well, here is the background. Our campus master plan calls for an alumni center on that corner. The alumni association is a separate 501(c)(3). They’re not us. The university can’t build it, or no state money can be put into it. They would have to raise and finance it themselves.

They’ve had a plan to do that for a while, and they haven’t made much progress on it. One of the thoughts is… and, yes, our academic departments, research centers, and institutes could use additional conference space close to campus. That’s sort of the want. We know that our academic departments could use more space for that kind of thing near campus. The thought was, and the consultant is including this in their analysis…Could a hotel conference center also include this space for our alumni association, which would be paid for not by the university or the alumni association, but by the revenues generated by the hotel, and the conference activities, and the restaurant, and whatever else might be in the hotel?

Would any tuition money be used to build this?

No, not at all, it is going to have to be 100% financed by the developer and operator of the hotel.

You are going to run across groups in San Marcos that are not going to be in contempt of this development. How are you planning to sell this to the local community?

No, I think you are absolutely right. This will help to diversifying San Marcos’ economy…But we certainly do not want to do anything to detract from the San Marcos conference center. We touched based with the city, and that thing is going so well, they are going gangbusters. Conferences and conventions are being turned away because they are full.

We first confirmed this would not be a negative influence on their business. There are other people looking at hotels in the area who might not be happy about this, too. It’s kind of one of those who gets theirs out of the ground first type of thing.

The location the university wants to build this hotel/conference center is currently a parking lot. What are the plans to replace these precious parking?

In the feasibility study, if it proves to be feasible, then the R.F.P. (request for proposal) will be they have to replace the parking that is taken up by the hotel and conference center with a garage that will replace the student parking as well as provide parking for customers of the hotel and the conference center. That’s a part of the deal, too, so that we don’t lose any parking spaces there.

Do you have any idea where that parking be relocated to?

It would be on the same plot of land. That’s one of the things the consultant is looking at, can you squeeze that in, and how would it have to be sited. With the railroad track running right through there, that’s not the best thing for a hotel to be right next to, so maybe the hotel front of Aquarena Springs and the garage is back toward the railroad track acting as a buffer. I mean that’s all architectural stuff that can be developed. Ideally, it would be all on that site, and the consultant will tell us if that will work or not.

You mentioned the railroad, how can you overcome the sound issues next to this development?

We have been told that San Marcos is working with Union Pacific to declare all of these tracks through here a quiet zone so they won’t blast the horn, but you still have the rumbling of the train as it goes by.

If we can solve the noise issue, a positive would be if we ever get Lone Star Rail between Austin and San Antonio, we have identified and provided to Lone Star Rail that we would put a rail stop right there on that location. That could also serve to facilitate the hotel. If people are coming here for conferences from San Antonio or Austin, they could ride the train here rather than drive down or up.

I know this is a long process, when the feasibility study and the other processes fall in to place, what kind of timeline would the University be looking at?  

Let’s see, the consultant has promised us the study in January. If we decide to go forward with that, putting out an R.F.P. (request for proposal), let’s say we reviewed their report, the board of regents meet in February, we would talk to them about it. If we put out an R.F.P., I think by August, six months, we should have a contract with a developer. Then, it becomes the developer’s process of architecturally designing the hotel. It might be June, the summer of 2016 probably is when they would start construction. I don’t know about the timeline on a hotel construction project when it might open, a year and half from then.

Do you think the construction would be taking place during the construction of the Aquarena Overpass?

It could, because I think the overpass is due to start construction this May, I think that is when it has been pushed to. Originally, it was years ago, and most recently, I think it was February. Now, they’re saying May. Yes, this construction could be going on while the overpass construction is going on.

Would Texas State University be receiving any of the profits from the hotel/conference center?

Well, that would be nice. It remains to be seen. The priority is can we get free space for the alumni center. Then, yes, we would like to. I’m sure in the R.F.P. we will ask for some sort of revenue sharing mechanism to be proposed as a part of that. 

What kind of events does the University see being held at this hotel & conference center?

We get quite a few requests a year for alums to hold their weddings on campus. They want to come back to campus and hold weddings. Again, the alumni association functions, our academic departments host conferences and workshops. It would probably run the same gamut of the kinds of events that are at the San Marcos conference center or any other hotel with conference space, ballroom space, etcetera in them.

Last question, rumor has it that you are going to retire, is that correct?

That’s right. I gave President Trauth a heads up a few weeks ago that August 31, 2015 I’m going to retire. I have been doing this for 44 years, and that is plenty.

I believe that Texas State is currently in a great position and with so much positive happening here….Texas State and San Marcos has a bright future.

Mr. William Nance is the Vice President for Finance and Support Services and sits on the President’s Cabinet.

The Division of Finance and Support Services (FSS) manages a wide variety of financial, facilities, and human resources activities for Texas State University. Over 440 skilled, service, and management staff  work in the 10 operating units that comprise the FSS Division. The Vice President for Finance and Support Services is the chief financial officer for the university and is specifically charged with advising the President, President’s Cabinet, and Texas State University System Board of Regents on matters related to finance, business operations, facilities management, campus construction, and human resources.