City, hotel owners taking a break on negotiations

Negotiators for the city of Cedar Rapids and owners of the Crowne Plaza Five Seasons Hotel have taken a break in efforts to finalize a sale to the city.

Cedar Rapids Mayor Ron Corbett said Thursday both sides have entered a “cooling off” period and don't plan to resume negotiations this week.  The city's efforts to buy the 275-room hotel from CWCapital LLC should resume next week.  The city announced plans to purchase the hotel as part of the Events Center project last summer.

The mayor said the break was necessary because both sides appear to have reached a temporary impasse.

The failure to finalize a deal for the hotel property does have implications for the city's $67-million dollar Events Center project.  City officials were prepared to show off schematic designs of the new convention space and refurbished U.S. Cellular Center arena this week.  But the designs include work that would be done in the adjoining hotel.  The city put off any display of the Events Center design until the hotel deal is complete and the city has control.  That included pulling approval of the design plan from the Cedar Rapids City Council agenda this week.

Earlier this week, the mayor described the hotel hold-up as “legal and liability” issues between the two sides.