Negotiations Stalled Between Drury and MoDOT

Although land negotiations for a new Drury hotel in Brentwood were making progress, the transaction that has been in the works for two years is now stalled.

Since discussions began in summer of 2009, Drury Development Corporation has bought one parcel of land from a commercial property owner, leaving two parcels owned by the Missouri Department of Transportation (MoDOT) to be negotiated, Mayor Pat Kelly said.

MoDOT Community Relations Specialist Andrew Gates confirmed the property size at 3.3 acres, giving a rough price estimate for the land at $6 million. 

Gates said it might not sell at that price if an agreement is made, however. “Any negotiation is give and take,” he said.

The property in question lies at the corner of Brentwood Boulevard, Eager Road and I-64 near Brentwood Promenade Court.

According to a Jan. 3 Board of Aldermen meeting, the two main issues delaying progress on the potential Brentwood project are timing and economics.

Drury Senior Vice President Larry Hasselfeld spoke at the meeting and said that Drury Corp. waited for the I-64 highway construction project to end in December 2009 before initiating negotiations. The land was being used to house construction materials for the project.

He also mentioned economic pitfalls Drury faced in 2009 and 2010 due to a recession in the hospitality and real estate industries, and said to make a comeback Drury is now deep in development mode.

It is currently constructing three hotels in Florida, Missouri and Tennessee with hopes of acquiring the Brentwood property. The problem, he said, lies in a difference of opinion on market value for the land, but did not comment further.

Gates also declined to go into detail about the possible deal.

"Unfortunately, we can't talk specifics about our negotiations because they are, of course, negotiations," he said. 

Gates said circumstances can change dramatically before any decisions are made.

“The most important point to stress is that we want to make sure we get fair market value (for the property),” he said. 

Money from transactions like this go back into MoDOT projects for the city, which residents pay taxes on. Better results stem from a project with sufficient funding, which is why, Gates said: “When we sell a property...we want to get as good a deal as possible.”

Since discussions have gone nowhere, Gates said until the point where an agreement is made: “We will just have to wait and see. The property remains for sale at this point."

According to Hasselfeld in the January meeting, Drury’s design for the project included an option for paving Deer Creek near Eager Road and Rose Avenue to make it a through street to Strassner Dr.

The road alone would cost $6 million, a price Kelly said in a 2010 April 19 Aldermen meeting would not be covered by revenue produced from the potential hotel and adjacent freestanding restaurant.

Other avenues, such as transportation grants through MoDOT or municipal funds could provide funding for the street, though any requests from the City of Brentwood itself would require a seperate agreement. 

Hasselfeld said in the January meeting that at this point Drury is pursuing the project without that as part of the design. He said he would continue to update the board on any further changes.