AUSTIN | JW Marriott Convention Center Hotel | 408 FT | 34 Floors | Complete - Page 14

KevinFromTexas · #**261** Posted **Jun 13, 2013, 11:10 PM**

They're working on the 6th floor, the top of which is at 117 feet. The highest level of the podium is 6 floors and 117 feet. So the height of the constructed tower now is the highest the podium level will be. The portion of the podium that fronts Congress Avenue drops down one level to 5 floors and is 90 feet. So the portion that faces Congress still has 3 levels to go.

The ATX · #**262** Posted **Jun 15, 2013, 4:06 AM**

The city cancelled the incentives to White Lodging:

http://austin.ynn.com/content/top_st...iott-developer

East7thStreet · #**263** Posted **Jun 15, 2013, 4:12 AM**

Quote:

Originally Posted by Hill Country

The city cancelled the incentives to White Lodging:

http://austin.ynn.com/content/top_st...iott-developer

Crazy. Houston approves 100+ million in incentives to build an identical hotel and Austin revokes 3 million in incentives over $5,000 in supposed unpaid wages. loco

The ATX · #**264** Posted **Jun 15, 2013, 4:13 AM**

Here's a Chronicle story about the dispute. It seems the $3.4 million in incentives would still be in place if Whit Lodging would have just paid $5K in back pay to 13 workers.

http://www.austinchronicle.com/news/...eal-of-a-deal/

KevinFromTexas · #**265** Posted **Jun 15, 2013, 4:27 AM**

Quote:

Originally Posted by East7thStreet

Crazy. Houston approves 100+ million in incentives to build an identical hotel and Austin revokes 3 million in incentives over $5,000 in supposed unpaid wages. loco

Ethics. I also have to wonder if they cut corners on this issue, where else were they possibly being cheap?

wwmiv · #**266** Posted **Jun 15, 2013, 4:37 AM**

I don't think this will stop the construction or the project, but does anyone else disagree?

JoninATX · #**267** Posted **Jun 15, 2013, 5:48 AM**

Quote:

Originally Posted by wwmiv

I don't think this will stop the construction or the project, but does anyone else disagree?

I don't think it will.

The ATX · #**268** Posted **Jun 15, 2013, 6:01 AM**

I think there might be some posturing and threats during the next couple weeks. But I don't think White Lodging's financial backers will let them halt construction this far in. It's just unbelievable that they didn't want to pay a measly $5K to settle this.

KevinFromTexas · #**269** Posted **Jun 15, 2013, 6:36 AM**

Halting construction would cost them way more than $5K. It would likely cost them several times that each day that construction was halted. All that equipment is rented after all. The developer also has agreements with their lenders and also a contract with JW Marriott. It would also greatly tarnish their image. This isn't some startup developer we're talking about looking to get their foot in the door, this is a major nationally known developer with their products all over the country.

LoneStarMike · #**270** Posted **Jun 15, 2013, 6:48 AM**

Sorry if this is a dumb question, but could they change the design - like making the exterior of the tower portion stucco rather than the blue glass just to save money and flip us the bird at the same time?

The ATX · #**271** Posted **Jun 15, 2013, 6:51 AM**

Quote:

Originally Posted by LoneStarMike

Sorry if this is a dumb question, but could they change the design - like making the exterior of the tower portion stucco rather than the blue glass just to save money and flip us the bird at the same time?

...or they could put a tree on it next week and say they're topped out.

hookem · #**272** Posted **Jun 15, 2013, 7:03 AM**

My guess is that White Lodging is not so dumb that they'd let $5K prevent them from getting $3.8M in tax breaks. Remember, that was just a small audit of some workers. Probably White Lodging is violating the wage minimum in a much larger way, and plans to continue to do so for the substantial construction that is still ahead of them. There is probably much more in costs associated with complying that is not yet known, so they want to renegotiate the incentive deal. And I think ultimately their lawyers will succeed in doing that.

The ATX · #**273** Posted **Jun 15, 2013, 7:28 AM**

Quote:

Originally Posted by hookem

My guess is that White Lodging is not so dumb that they'd let $5K prevent them from getting $3.8M in tax breaks. Remember, that was just a small audit of some workers. Probably White Lodging is violating the wage minimum in a much larger way, and plans to continue to do so for the substantial construction that is still ahead of them. There is probably much more in costs associated with complying that is not yet known, so they want to renegotiate the incentive deal. And I think ultimately their lawyers will succeed in doing that.

It seems the city's definition of "prevailing wage" was rather vague. So I guess that is in their favor.

LoneStarMike · #**274** Posted **Jun 15, 2013, 7:57 AM**

Quote:

Originally Posted by Hill Country

...or they could put a tree on it next week and say they're topped out.

Seriously, though - could they downgrade it back to a Marriott Marquis (which is what it was originally supposed to be when the project resurfaced in 2011) and go with this previous rendering that just about everyone on the forum hated?

The ATX · #**275** Posted **Jun 15, 2013, 8:30 AM**

Quote:

Originally Posted by LoneStarMike

Seriously, though - could they downgrade it back to a Marriott Marquis (which is what it was originally supposed to be when the project resurfaced in 2011) and go with this previous rendering that just about everyone on the forum hated?

I hope I don't get in trouble from the copy right police, but this is from the Statesman "premium" content:

...A statement from company executive Deno Yiankes states that construction will continue under the assumption the city will honor the tax incentives...

Jdawgboy · #**276** Posted **Jun 15, 2013, 10:30 AM**

Its only 3.4 million dollars which is really not a big deal for a company like White Lodging and if they are not paying their workers fair wages then I have no sympathy for them. I think the hotel will be finished either way but I think White Lodging will likely not build any future projects in Austin which is also fine by me. They currently have the largest market share of the hotel industry in Austin. I think it would give other hotel developers more opportunities which in turn will bring more competition to the market.

There are times when I think the city government goes overboard with certain issues but in this case I think its a good thing they are standing their ground and with the workers who spend many long hours and hard labor to build a quality structure and they deserve good pay for that work.

texastarkus · #**277** Posted **Jun 15, 2013, 2:36 PM**

My opinion White will do anything to keep their name good. They are now in competition with the Fairmont for future convention business. Since most of the low paid wage workers are probably minorities (call me a racist I don't care)...the last thing a convention needs/wants is to be at a hotel that is under some sort of investigation for paying their workers less than the living wage. Plus get an NAACP or LULAC involved protest and the conventions will stay away in droves right to the brand spanking new Fairmont. I wonder if the Fairmont has a sales office and sales staff who would be very happy to point out the issue to convention planners looking for a 2016+ site.

Mikey711MN · #**278** Posted **Jun 15, 2013, 3:49 PM**

If anyone is interested, prevailing wages are evaluated and maintained by the US Department of Labor, who posts updates to trade rosters by type of construction. This is established by the Davis-Bacon Act.

Here is the latest wage determinations for a Federal project like this... http://www.wdol.gov/wdol/scafiles/davisbacon/tx17.dvb.

Since Federal funds do not appear to be involved that would otherwise trigger such compliance, the City runs their own program along similar tenants...
http://www.austintexas.gov/sites/def...Compliance.pdf

And have a correspondingly similar roster of trades that are frequently included in contracts or agreements (or may be change ordered in as they may change over time)...
http://www.austintexas.gov/sites/def...7-23-12%29.pdf

Ultimately, the current one posted supersedes any previous determinations, but in general, the trades themselves do not change much between versions.

As it were, the process allows for contractors to submit requests for clarifications for specialty works to the DOL for further determination. Not sure if that applies in this case though.

MichaelB · #**279** Posted **Jun 15, 2013, 6:22 PM**

Quote:

Originally Posted by LoneStarMike

Sorry if this is a dumb question, but could they change the design - like making the exterior of the tower portion stucco rather than the blue glass just to save money and flip us the bird at the same time?

Don't think that is possible at this point. Those are structure choices that were made long ago. And those materials had to be ordered by now...besides they are already have some of the exterior finishes going up.
I think we're good.

KevinFromTexas · #**280** Posted **Jun 15, 2013, 8:51 PM**

Quote:

Originally Posted by LoneStarMike

Seriously, though - could they downgrade it back to a Marriott Marquis (which is what it was originally supposed to be when the project resurfaced in 2011) and go with this previous rendering that just about everyone on the forum hated?

Basically I'll say what MichaelB did. They've already engineered it with this current structural design. Now facade design changes are a different thing. They could possibly alter that. Facades are less of a structural issue. Remember, Dobie Center used to be faced with limestone, now it's all glass. But it's unlikely they would do that since it would require them to hire an architect to come up with the design. And it's doubtful they would use the old one.

Quote:

Originally Posted by Jdawgboy

I think the hotel will be finished either way but I think White Lodging will likely not build any future projects in Austin which is also fine by me. They currently have the largest market share of the hotel industry in Austin.

They are still planning that 19-story Westin Hotel at 5th & San Jacinto. So I doubt they would huff and puff and pout and leave. They still stand to make more money in Austin and I'm sure they'll attempt do so.