Jonesboro A&P declines to fund O'Reilly campus convention center project

A-State officials are looking at other funding options after the Jonesboro Advertising & Promotion Commission voted to fund the Keller Family Hotel and Convention center project over a proposed project on university property.

A-State joined leaders in the Keller project to present ideas to the commission March 2. After one commission member recused himself from each of the votes, a motion to fund the A-State project failed 2 to 3.

The commission voted 3 to 2 to approve funding to the Keller project to the amount of $150,000 for the first year, $100,000 for the second year and $50,000 for the third year, including a relief on taxes for those three years.

Located along Browns Lane Access Road near the future I-555, the Keller Family Hyatt Place and Convention Center will occupy 37,000 square feet of land owned by the Keller family. The project includes a 159 room Hyatt Place Hotel, convention Center, and space for second hotel in the future. The project has an estimated completion date of mid-2017.

Meanwhile, A-State’s project includes a 202-room Embassy Suites, convention center and Houlihan’s restaurant. O’Reilly Hospitality Management is heading the project and leased the land from the university. Representatives from the university and the O’Reilly group are not discouraged by this development.

A-State Chancellor Tim Hudson released a statement following the A&P Commission’s decision, expressing his disappointment and noting the benefits a project like this could bring to students and area residents.

“We are very disappointed by the Jonesboro A&P Commission’s decision today. The public-private partnership between Arkansas State and O’Reilly Hospitality Management will bring an upper-upscale hotel and convention center to our community at an ideal location. The cooperative effort of the city’s second-largest employer and home to 13,000 students and an experienced developer of hospitality venues throughout the U.S. is significant for Jonesboro and the region. It will allow A-State to establish a new academic program and enhance student recruitment. We are grateful to the city’s medical centers and businesses who have expressed support for our partnership. We look forward to continuing our plans with O’Reilly and will always focus on what is best for our students, who clearly understand the value of this project for our campus,” Hudson said.

A representative for O’Reilly mirrored Hudson’s response.

“Obviously we were looking for a favorable vote today and since that didn’t happen we will have to go back and reevaluate our plan. I don’t have an exact answer of what the end result will be, but we will have to evaluate the impact that has and change the scope of the project,” Region Director for O’Reilly Hospitality Darren Harrelson said.

Jonesboro Mayor Harold Perrin released the following statement on March 2:

“I’m pleased that Jonesboro will be getting a convention center. This city government and others have been working on a convention center for at least seven years, and it appears that it will soon be a reality. I would like to congratulate Chuck Keller Sr., and his organization for putting together a successful proposal, and we look forward to working with him in the future to bring more people to Jonesboro for meetings, conventions and other activities. I also would like to express my appreciation to the A&P Commission

for thoroughly analyzing the two proposals that were put forward and for making the difficult decision. Although ASU’s proposal was not successful in getting A&P money, there should not be any doubt about the fact that Jonesboro strongly supports our university. If O’Reilly Hospitality Management goes forward with its hotel and convention center proposal, we will do whatever we can to help.”

Perrin previously spoke in support of the Keller project, noting it was the first to be introduced.