Title
Revised proposal for Lot 9/Hampton Inn Redevelopment (B)
Explanation
On September 19, 2005, the CRA authorized Staff to prepare a Request for Proposals to solicit developers interested in building a hotel or a hotel with other uses on Lot 9 in Downtown. A response by Windsor Aughtry was subsequently selected for this project. Windsor Aughtry’s original submission proposed a seven-story, 122-room Hampton Inn and Suites Hotel, and included requests for upfront incentives as well as a request that CRA return 75% of the increment generated by the project for three years, reducing to 60% for an additional 10 years. The application included requests for connection to the community stormwater bank at no cost to the developer, CRA-funded relocation of the existing utility transformers off site, and the free use of the sidewalk and existing parking on Southeast 1st Avenue as a drop off and loading zone for hotel guests. The developer also requested that the CRA cover half of the cost for the balconies on SE 2nd Avenue. The total amount of incentives requested was approximately $317,500 in upfront incentives and TIF reimbursements at 75% for three years and then dropping to 60% TIF reimbursement for the following 10 years. The net present value of this request totaled to approximately $800,000.
At the time when Windsor-Aughtry’s initial proposal was considered, the CRA approved of the general nature of the project and of the incentive request. However, the applicant was advised that the CRA cannot offer front-end incentives and was encouraged to return at a future date with a revised incentive request tailored to back-end TIF revenue sharing, which is allowed by the CRA.
Since that time, the applicant has revised and adjusted certain details of this development, including the construction staging plan, number of stories, and reconfiguration of a back-end only incentive request. Additionally, the developer has separately negot...
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