Harbor investment now $30 million

The hotel project was approved by the Guntersville City Council following an extensive review process. It was awarded to Lawler Hotels, LLC, a subsidiary of P. Lawler Enterprises which is currently completing two other related harbor projects. Those include shops and restaurants, a brew pub, short-term rental condos and an 8,500-square-foot event facility.

The initial Lawler harbor projects were based on long-term property leases, while the hotel agreement allows the city to sell the land to the developer for $10.

Based on the most conservative estimates available, the city of Guntersville, Guntersville schools and local tourism organizations will receive more than $950,000 per year in direct harbor-related tax revenues once the hotel is completed. The terms of the agreement provide significant protection to the city, with the property reverting to city ownership if key dates and other deliverables are not met.

After Lawler had been in negotiations with the city for many months, the city received an alternate proposal from a different developer who offered to pay for the land. That developer submitted an earlier proposal in 2019 which the city spent several months negotiating, but the developer ended up withdrawing that offer.

The city found a number of deficiencies with the recent alternate proposal which made it unfeasible according to Rod Kanter, an attorney specializing in economic development work who is advising the city.

“Besides the legal issues with the second proposal, it was not a realistic option from a good faith viewpoint. At that point the city had followed the letter of the law and all commercial development best practices with the Lawler project. To start over with another developer would have ruined Guntersville’s reputation for future development,” Kanter said.

The Lawler-built hotel will include approximately 90 rooms. Plans will be subject to city approval, and will include features and amenities expected at a high-quality destination property.

The developer has not yet finalized a hotel partner, but emphasized it will be a major brand that will enhance the draw of the unique location.

“Anyone who has visited Guntersville City Harbor restaurants or other facilities has seen the quality of the vision shared between Lawler Enterprises and the city of Guntersville,” said company president Patrick Lawler. "The hotel will be a continuation of that vision and will be an economic engine for Guntersville for decades to come."