$1 billion San Diego conference center derailed by unions
What happened to that $1 billion waterfront hotel and convention center in San Diego?
Gaylord Entertainment this month withdrew its proposal, citing union demands that could cost up to another $75 million.
“After over a year of unproductive discussions with the San Diego Building and Construction Trades Council, we have concluded that their unwavering, unreasonable demands render the project unfeasible for our company and shareholders,” Bennett Westbrook of Gaylord wrote in a letter to the local city council.
Mr Westbrook wrote that the trades’ council insisted that Gaylord contract with construction contractors and subcontractors who hire only union workers even though 80% of the commercial contractors and subcontractors in the area are non-union.
Gaylord was willing to pay all workers union wages, but limiting the pool of bidders to union contractors and subcontractors would drive up the bids, he added.
Mr Westbrook accused the trades council of threatening to disrupt the project through lawsuits, which in turn would delay the sale of public bonds to help finance the project, said Mimigasite.
Gaylord, of Nashville, TN, has been negotiating with Chula Vista and the Port of San Diego for a $308-million public subsidy for the project, which was to consist of about 2,000 hotel rooms and 400,000 square feet of meeting space.
Report by David Wilkening
David
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