US House panel backs Fort Lee hotel

[David]

AP


RICHMOND, Va. – A congressional subcommittee has approved a 1,000-room Army hotel at Fort Lee in Petersburg, Va., according to a coalition of businesses opposed to the military lodging center.

The House Armed Services Personnel Subcommittee gave the green light to the seven-story, on-base hotel earlier this month, Linas Kojelis of the Hospitality Coalition said Friday. He said the subcommittee's Senate counterpart will now take up the matter. He said he expects a tough battle but a "fair hearing."

The coalition of hotel developers and small business owners considers the military hotel a swipe at private investors who have poured money into the Petersburg area expecting a bonanza from Fort Lee's vast, $1.4 billion expansion.

The lodging industry has invested $125 million alone in more than 1,000 new rooms, Kojelis said.

Despite the setback, he said, "The membership is holding firm." The coalition claims 180 businesses.

The $120 million hotel would be the largest built by the Army's Family and Morale, Welfare and Recreation Command. It serves as a sort of Marriot for the military, providing lodging and vacation destinations around the globe for service members and their families.

The Army and others involved in the expansion contend they never specifically encouraged hoteliers to build so many rooms. Local and military projections have played down the economic impact of building the lodging center, which was scaled back from an earlier 1,700-room proposal. They contend the expansion will greatly benefit the local economy.

When the Fort Lee expansion is completed in 2011, the base 25 miles south of Richmond will house once-scattered elements of the military — from Texas to Maryland — on nearly 6,000 acres. The post's daily population, including families, is expected to double to 40,000.

The House subcommittee delivered its verdict in a two paragraph letter to an undersecretary of defense. A committee staffer did not immediately return a telephone message left by The Associated Press.

Kojelis complained that the Army has stubbornly refused the coalition's invitation to discuss the impact of the hotel with the business people who will be harmed the most. He said the coalition will continue to press for official projections on the need for hotel rooms once the expansion is completed.

Fort Lee's public affairs office also did not immediately respond to a request for comment.