On a blustery day in early March, three Stamford Fire & Rescue Department engines descended on the office complex at 333 Ludlow St. in the city”™s South End, designated as the future home of Starwood Resorts & Hotels Worldwide Inc.
If that is the last alarm sounded between now and 2012 when Starwood is scheduled to move from White Plains, N.Y., that will be just fine with officials in Stamford and Connecticut.
Following a Wall Street Journal report in late February raising questions about Starwood”™s intent to move, Westchester County”™s lead economic development official said he has contacted the company to remind the hotelier that it remains a welcome guest in Westchester even as it readies to check out its 800 employees from its current headquarters ”“ and of course, if it chooses to stay put.
It is the latter scenario that has tongues wagging behind the scenes, as real estate brokers are reminded of the old adage, “where there is smoke, there is fire.”
In early February, the Wall Street Journal reported that restrictions on the use of federal stimulus funds could prevent Starwood from relocating its headquarters across the border to Connecticut, with the stimulus funding barred from being used to move jobs between states.
The newspaper ran a correction and amplification the following day, clarifying that Starwood”™s move to Stamford is dependent on Connecticut delivering on $90 million in loans and tax incentives ”“ moneys not affected by the federal stimulus ”“ and not on millions in federal stimulus-backed bonds earmarked for Stamford”™s South End from which the company would indirectly benefit, money covered under the jobs export ban of the American Recovery and Reinvestment Act.
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The same story stated that if federal stimulus funding was blocked in any response to Starwood”™s move, the state might pick up the tab for the improvements.
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The company has steadfastly maintained it has no plans to renege on the Stamford lease agreement, noting it has informed employees who must make their own plans for new commutes, and possibly new residences for some.
It would seem to be case closed, except that at press deadline brokers noted Starwood has yet to finalize a lease with landlord Building & Land Technology, which owns 300 Ludlow St. where Starwood wants to move. That has some wondering whether Starwood may be inquiring on options with its current landlord for staying put, or other options not involving a cross-border move that could bring federal stimulus scrutiny.
“Since the Wall Street Journal article, we did reach out to Starwood and had a conversation,” said Larry Gottlieb, head of economic development for Westchester County under new County Executive Rob Astorino. “We need to be reaching out to the top corporations in Westchester, and Starwood was obviously going to be part of that discussion. The Journal article just kind of accelerated that process ”¦ Our conversation with them was respectful, not desperate.”
Laure Aubuchon, Gottlieb”™s counterpart in Stamford who previously worked in the economic development office of New York City Mayor Michael Bloomberg, said she has received assurances from two Starwood managers that the deal is on.
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Aubuchon said the speculation was understandable, but simply a function of the state finalizing the incentive package for Starwood. Until Connecticut completes its work, Aubuchon said, Starwood has nothing to sign.
“I have every reason to believe nothing has changed,” Aubuchon said. “Unless the two guys I met are Laurence Olivier and Sir John Gielgud, they”™re coming.”
In the meantime, Starwood might be treated to an encore soliloquy or two from Gottlieb.
“Until the last light is turned off, it is our business to be looking after any needs they may have,” Gottlieb said. “I do hold out hope knowing that the deal is not done until it”™s done.”
