Approval of district brings Novi hotel plan to next level

Novi, Mich.- The Novi City Council passed a motion 5-1 at Tuesday’s meeting to create a commericial district for 46100 Grand River Avenue, the proposed site of a new hotel adjacent to Suburban Collection Showplace.  

“We need to create, to expand to provide for the needs of the center in the future to support and sustain positive economic impact,” said Blair Bowman, owner and president of Suburban Collection Showplace.

Suburban Collection Showplace, a banquet, conference, and exposition center known as Rock Financial Showplace until early 2011, is one of few event centers of its kind without an on-site hotel.  The proposal to build one is met with controversy from other hotel representatives in the area that fear their business being taken away.  Managers of the Crowne Plaza and Sheraton Detroit Novi hotels spoke of area hotels already hurting for rooms, with an average capacity of 60 percent.  

“People will still consider where they stay,” said Bowman.  “Hotels won’t lose all rooms that Suburban Collection has brought them.”

Vice president of development for Hyatt hotels Kevin Schramm spoke about the type of hotel that Suburban Collection Showplace would like to build, a 127 room select service hotel franchising the Hyatt Place’s name.  

“A select service hotel is focused on the room’s product,” said Schramm.  “It eliminates services that can create drag, like a three meal a day restaurant.”       

Council member Justin Fischer questioned Bowman and his colleagues about the feasibility of the proposed hotel in both cost to the city and economic impact to Novi and surrounding areas, stating that he felt it was unfair for the city to give compensation to one hotel over another.  

“There is nothing normal about the times, nothing traditional about our proposal,” said Bowman.  “As far as the demands for this project, we live it daily.  We need to aggressively go out and seek this business.”   

Council member David Staudt disagreed with Fischer, saying that of the 5-15 conference centers he frequents per year nationwide, few of them do not have their own on-site hotel.

“I do not see Suburban Collection Showplace surviving without a hotel,” said Staudt.  

Novi Mayor David Landry also voted in favor of the district, saying “it’s not about the hotel, it’s about the showplace.”

In order to build a hotel at 46100 Grand River Avenue, Bowman and his colleagues have created a proposal for a six year full tax abatement.  The creation of a district that allows for a hotel is only step one of the process.  Council action to begin the abatement will not take place until the next city council meeting on October 24.  

Landry gave his feeling on tax abatements just before the motion for the district was passed.  

“Tax abatements are like a three-iron,” said Landry.  “You need one in order to have a full set of clubs, but you don’t use it very often.”