Last-minute amendments to an agreement with the builders of a hotel and convention center at National Harbor might cost Prince George’s County $5 million a year, according to a government source familiar with the project, if Gaylord Entertainment Co. slices 500 rooms from the 2,000-room hotel rather than face a $25 million penalty for not meeting project goals.
The penalty is largely tied to minority-owned business contract quotas set by the County Council in mid-June. The amendment calls for minority-owned businesses to get 15 percent of construction and operating contracts at the hotel and convention center. Fewer rooms at the convention center could cost the county more than $5 million in tax revenues annually over the next 30 years at the convention, hotel, office, residential and retail project rising along the banks of the Potomac River south of the Capital Beltway.
A spokesman for Tennessee-based Gaylord wouldn’t discuss the issue on Monday.
An amendment proposed by the County Council in mid-June links $50 million in bonds to an additional 500 rooms. The amendment includes up to $25 million in penalties if Gaylord Hotels does not meet certain goals including minority-owned businesses be awarded at least 15 percent of the $700 million Gaylord National project construction contracts. Minority-owned businesses would also be entitled to at least 15 percent of operation and maintenance contracts. The amendment erased all previous requirements for hiring local businesses.
