Stalled Oro Valley hotel could restart - Tucson Local Media: Pima Pinal

Stalled Oro Valley hotel could restart

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Posted: Tuesday, May 4, 2010 11:00 pm

Developers of a stalled hotel project on Oracle Road say they intend to get the development moving again soon.

Sunway Hotel Group, a firm based out of Overland Park, Kan., began construction at the 120-room Homewood Suites hotel located near Oracle Road and Linda Vista Boulevard more than a year ago. The hotel would carry the Hilton banner when completed.

But according to permitting records with the town of Oro Valley, the developer has not requested or been granted any permits since August 2009. The most recent permits expired in February.

"A lender backed out on us," said Linda L. Smith, Sunway senior vice president. "Unfortunately, the economy is hitting everyone."

Smith said economic factors forced the project's original lender to abandon the development. Since then, Sunway officials have worked to secure new financing and believe they have accomplished that.

"I feel very confident that people will see activity soon," Smith said.

When the company's financing dried up, so did its ability to pay numerous contractors.

Published legal notices show that at least six contractors have filed liens against the company worth more than $745,000.

Smith said the new financing would take care of the past-due contractor payments.

"That's all in the process we're working on now," Smith said.

The company has a second hotel project planned in Oro Valley, which has not broken ground.

The Marriott Springhill Suites is slated for construction near Oracle Road and Pusch View Lane in the Mercado del Rio center. That hotel would also feature 120 rooms.

Smith said the company doesn't plan to start the second hotel until the first is completed.

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