Provo city meets arts center deadline

PROVO — Provo has awarded the contract to build its new $7 million performing arts center to Hogan & Associates, and city officials believe they have met a requirement for access to a third of the funds raised for the project.

Meanwhile, the owner of a hotel next door to the project on west Center Street is still waiting to see if the city will meet his asking price or if it will take his property through eminent domain proceedings and use it to expand the footprint of the proposed arts center.

Hogan built Provo's 2002 Olympic Winter Games venue, The Peaks Ice Arena, and submitted the lowest of two bids for the performing arts center — $7,042,600.

Provo has raised $4.3 million for the center, which will include a 700-seat theater, but the city is relying on an additional $2.2 million from tax increment bonds, a source banned by the Utah Legislature earlier this year.

The Legislature granted an exception for Provo's performing arts center on the condition that construction begin by today.

"The specific wording requires the city to commence construction before the 31st of December," Provo spokeswoman Raylene Ireland said. The statute didn't define what "construction" meant, but city officials initially planned to hold a groundbreaking ceremony.

Instead, city officials met recently and determined they have met the Legislature's requirement because, Ireland said, "we have (signed) the contract with the construction company, issued the demolition permits and the building has been turned over to the general contractor, who is on the site and has the keys. Also, demolition on the interior of the building has begun."

Mayor Lewis Billings used concern about the deadline to push the City Council to authorize the use of eminent domain to take the Traveler's Inn, 469 W. Center, from owner Bob Patel if negotiations with Patel fail. The council voted 6-0 with the abstention of outgoing council member Paul Warner to give Billings that option.

However, Billings promised not to use eminent domain until appraisal work was completed. An initial appraisal valued the property at $550,000, but revisions made at Patel's urging boosted reworked appraisals to $800,000 and then $875,000.

The city agreed to pay for a reviewer to analyze the appraiser's work, something originally estimated to be completed a couple of weeks ago.

"They are not done with the appraisal yet," Patel said. "I'm just waiting for them. Maybe no news is good news."

Provo also offered to buy the Best Western Columbian Inn at 70 E. 300 South and trade it to Patel for his property, but he has refused. Patel said he would lose $48,000 a year in net operating profit if he made the trade.