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FREQUENTLY ASKED QUESTIONS ABOUT THE MARRIOTT LANCASTER AT PENN SQUARE AND THE LANCASTER COUNTY CONVENTION CENTER


 

THE FACTS
The downtown Marriott Lancaster at Penn Square, an upscale, full-service hotel will open in a new hotel tower and spaces shared with the Lancaster County Convention Center Authority in the former Watt & Shand Building. Construction is underway with opening scheduled for spring 2009. The hotel is one component of a downtown revitalization plan that also includes the development of a convention center. The total project will cost $170 million to build.  (See facts and figures for more details.) Here are answers to some common questions about the project. 

WHO IS PENN SQUARE PARTNERS?
The two Penn Square Partners are general partner Penn Square General Corporation, an affiliate of The High Companies, and limited partner Penn Square Ltd. LLC, an affiliate of Lancaster Newspapers, Inc., leading Lancaster-based companies with long histories of commitment to the community.

WHAT ARE THE DESIGN PRINCIPLES GUIDING DEVELOPMENT OF THE HOTEL AND CONVENTION CENTER?
The project design team, led by Cooper Carry Architects (Atlanta GA), is guided by these design principles, which were established in collaboration with community leaders and community members at various public meetings and design charettes:

  • An open, inclusive design process
    • Community perspective
    • Synergies with the tourism industry
    • A world-class team of design professionals
  • Create an efficient hotel and convention center plan by maximizing shared facilities to reduce first-time cost and ongoing operating cost for the project.
  • Great streets
    • Enliven Penn Square with pedestrian activity
    • No back doors
    • Minimize the effects of loading/unloading
  • Flexibility
    • Flexible and expandable meeting & function space
    • Maximize target market by varying the size and quality of the meeting/convention space
  • Arrival
    • 70% of guest's experience happens before the front door
    • Maximize Lancaster's historic assets
  • Scale
    • Design the buildings appropriately
    • Minimize negative impact of "Streetscape"
  • Unique identity
    • Lancaster, create a unique sense of place
    • Theme-based design
  • Historic structures
    • Respect, enhance and incorporate existing historical structures

HOW WILL THE CITIZENS OF LANCASTER BENEFIT FROM THIS HOTEL?
See Community Benefits section of this site.

WHAT WILL HAPPEN TO THE WATT & SHAND BUILDING?
The façade of the Watt & Shand Building will be restored to its former glory and, along with new construction, the property will be converted into a 21st century, upscale, full-service hotel and convention center with a restaurant and bar, lounges, ballrooms, meeting space, exhibit areas and so forth. In order to provide the anticipated number of guest rooms and all of the amenities included in a Marriott Hotel, a tower addition also will be constructed. The hotel’s design will be respectful of the streetscape that is uniquely Lancaster.  See the proposed business plan for more information.

WHO WILL OWN THE MARRIOTT LANCASTER AT PENN SQUARE?
See the proposed business plan for more information.

WHO WILL OWN THE WATT & SHAND BUILDING?
State law requires that additional state funding coming to the project from state grants and Act 23 must be received by a public entity. Since a portion of these state funds will be used to construct spaces that will be shared by the convention center and the hotel within the former Watt & Shand Building, the Watt & Shand Building will be owned by a public entity.

Because the project is a centerpiece in the redevelopment of downtown Lancaster, the Redevelopment Authority of the City of Lancaster (RACL) has agreed to receive and to administer these state funds. Penn Square Partners (PSP) has transferred ownership of the Watt & Shand Building to RACL and invested the proceeds into the project. See the proposed business plan for more information.

HOW DO MARRIOTT INTERNATIONAL AND INTERSTATE HOTELS & RESORTS RELATE TO THE MARRIOTT LANCASTER AT PENN SQUARE?
Penn Square Partners has a franchise agreement with Marriott International. This allows the Partners to use all of the resources of this leading hotel company including the brand name “Marriott,” service standards, a worldwide sales and reservation system, promotion and training. The owners, in turn, have signed a management agreement with Interstate Hotels & Resorts to run the day-to-day operations of the hotel on their behalf. Since Interstate Hotels & Resorts operates more Marriott Hotels than any other independent company, both Penn Square Partners and Marriott have confidence that the new hotel will maintain Marriott’s high standards of quality and service.

HOW DOES THE MARRIOTT LANCASTER AT PENN SQUARE RELATE TO THE LANCASTER COUNTY CONVENTION CENTER?
The Marriott Lancaster at Penn Square and the Lancaster County Convention Center are mutually dependent upon one another for success. However, each is being developed by a separate entity. The hotel is being developed by the Redevelopment Authority of the City of Lancaster (RACL) and Penn Square Partners. The Lancaster County Convention Center Authority (LCCCA), a joint city/county authority, is developing the convention center. RACL, Penn Square Partners, and LCCCA are cooperating actively with many civic and business organizations, city, county, state and federal government authorities to make downtown Lancaster a better place for residents and visitors.

HOW IS THE PUBLIC INVESTED IN THIS PRIVATE/PUBLIC VENTURE?
The hotel and convention center is truly a private/public partnership, which is critically important to the economic health of the city and the county. While the benefits of the project will accrue to the community at large, there is a tremendous amount of risk associated with the private component of this project. Therefore, in an effort to lower the risk and to encourage private development in a challenging urban setting, some level of public financial assistance is required. This is generally accomplished through various sources including grants and loans from state of federal agencies. These incentives have been utilized not only in Lancaster but also in other cities of comparable size to encourage development in downtowns. Learn more about this public-private partnership.

ARE THE PUBLIC SUBSIDIES THAT PENN SQUARE PARTNERS WILL RECEIVE TYPICAL?
Yes they are. Penn Square Partners, a partnership of two Lancaster-based companies, has undertaken the risk of developing and operating an upscale, full-service Marriott hotel in downtown Lancaster.  The only way that projects like this get built, anywhere in the United States other than cities building and owning hotels directly is to use public support to entice private enterprise to take large risks on projects that ultimately benefit the public.

Public-Private Partnerships have been in use in the United States for more than 200 years. This contractual arrangement between government entities and private companies for the delivery of services or facilities is used for water/wastewater, transportation, urban development, and delivery of social services, to name only a few areas of application. Today, the average American city works with private partners to perform 23 out of 65 basic municipal services. The use of partnerships is increasing because it provides an effective tool in meeting public needs, improving the quality of services, and more cost effective. Numerous surveys indicate why -- governments traditionally realize cost savings of 20 to 50 percent when the private-sector is involved in providing services. Visit the National Council for Public-Private Partnerships for more information and scores of case studies.

WHAT ORGANIZATIONS ARE INVOLVED IN THE PUBLIC/PRIVATE PARTNERSHIP TO DEVELOP THIS HOTEL AND CONVENTION CENTER?
Virtually every organization with an interest in the quality of life and economic vitality of downtown Lancaster has played, is playing or will play a role, formally or informally, in the development of the hotel and convention center. Penn Square Partners, the Redevelopment Authority of the City of Lancaster, and the Lancaster County Convention Center Authority have been aggressive and inclusive in their efforts to seek the advice of many different groups and organizations. These include Lancaster City, Lancaster City Council, Lancaster County and Commonwealth of Pennsylvania government officials, the Downtown Investment District, the Historic Preservation Trust of Lancaster County the Redevelopment Authority of the City of Lancaster, the Pennsylvania Dutch Convention and Visitors Bureau and the Lancaster Campaign’s “Destination Downtown” program.

HOW DO THE AGREEMENTS BETWEEN RACL, LCCCA, HIGH, AND PENN SQUARE PARTNERS RELATE TO THE HOTEL’S AND THE CONVENTION CENTER'S AGREEMENTS WITH INTERSTATE HOTELS & RESORTS?
The joint development agreement, the declaration of condominium, and the hotel tower lease between RACL, LCCCA, and Penn Square Partners form the foundation of understanding for the development and operation of this public/private partnership.

 
 
 

Penn Square Partners · PO Box 10008
Lancaster, PA 17605-0008 · (717) 293-4403
 
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