CHULA VISTA – Gaylord Entertainment's latest proposal to local unions is a “last-ditch effort” to develop a $1 billion hotel and convention center on the Chula Vista bayfront, company officials stated in a memo released yesterday.
The new proposal gives preference to San Diego County-based union contractors in the bidding process for construction projects. However, it doesn't limit Gaylord's options to only local contractors, as the unions seek.
On July 6, Gaylord senior vice president Bennett Westbrook said the company was pulling out of the project – ending two years of planning with the city of Chula Vista and the Port of San Diego – because it had failed to reach agreement with the unions.
Last week, after a meeting with national labor leaders, Westbrook made a new proposal to the national office of the AFL-CIO.
Tom Lemmon, business manager for the San Diego County Building & Construction Trades Council, confirmed the proposal's existence Monday and criticized it as a “non-starter,” but said the unions needed time to study it.
The trades council is holding a news conference today to make what it describes as a “major announcement” reacting to Westbrook's offer.
Yesterday, Westbrook released the proposal, saying in a statement, “Tom Lemmon has decided to negotiate in the press (again) and is misrepresenting our position (again).”
Westbrook's proposal gives preference to local contractors but does not require Gaylord to use them. The deal offers the following:
Gaylord gives San Diego County union subcontractors “first dibs” on projects.
If five union subcontractors submit “qualified” bids, no non-union subcontractors will be considered. Gaylord, however, has sole discretion to determine which contractors are qualified.
Bidding can be opened to non-union subcontractors only if there aren't five qualified union bids.
Westbrook routed the letter to local officials through Kipland Howard, president of San Diego-based Allegis Development Services.
Howard said that while Gaylord cannot put restrictions on the workers it hires because of the “size and complexity” of the project, the company wants to give preference to local workers.
“It doesn't make any sense to utilize out-of-area contractors; there would be added expense for travel and lodging,” Howard said. “It is very clear that we are giving priority to local contractors.”
Westbrook implied that this is a final offer.
“I should note that our proposal is not a 'point from which to begin discussions,' but rather a last-ditch effort on our part to develop the project,” he said.
Chula Vista's chief negotiator, Denny Stone, said, “It would have been better to hear some kind of joint statement from labor and Gaylord, but that didn't happen.”
“I think what's going to tell us most is what is going to come out of this press conference,” he said. “That's the unknown right now.”
Mayor Cheryl Cox said she has “met with both sides repeatedly and pushed them to come to a resolution.”
“I hope the labor leaders and Gaylord decide to move forward with the negotiations,” Cox said.
Port Commissioner Mike Najera, who represents Chula Vista, said he believes the two sides need to meet face to face.
“If the unions are going to make a counteroffer, let's do it at the table,” he said.
Tanya Mannes: (619) 498-6639; tanya.mannes@uniontrib.com
