An expected presentation to the Jefferson City Council on the proposed Truman Hotel Tax Increment Financing (TIF) plan has been delayed a second time.
The proposal, which would allow developer Puri Group of Enterprises to use tax revenue to redevelop the former Truman Hotel property, was rejected by the Jefferson City TIF Commission in June, but the full City Council can still approve the TIF with a two-thirds supermajority vote in favor.
The proposal was originally expected to be presented to the City Council at its Aug. 1 meeting, but delays in further contract negotiations caused that to be pushed back to the next meeting, scheduled for 6 p.m. Monday, with a vote on the proposal expected at the Sept. 6 meeting.
However, Monday's agenda shows no bill or presentation concerning the proposal, only a closed session for contract negotiations.
City Administrator Steve Crowell said negotiations are continuing, and the presentation had to be delayed once again. Crowell said there is no new date set for the presentation or bill introduction, though there is a specified time frame the council has to adhere to that requires a decision be made by late September.
A TIF allows developers to finance certain improvements in blighted areas using a portion of the new sales and/or property tax revenue that results from the development for up to 23 years or until all eligible costs are reimbursed. The Truman Hotel TIF could last up to 25 years because its second phase of construction would begin two years into the TIF.
In the case of the Truman Hotel TIF, according to the most recent version of the plan available, developer Puri Group of Enterprises would benefit primarily from a portion of the city's lodging tax. Up to $8.89 million in costs - about 15.65 percent of the total project budget - would be reimbursed first with 50 percent of the lodging tax generated at the property, with the remaining TIF-reimbursable costs covered through new property tax revenue.
The terms of the TIF would also require the Puri Group to annex two of its hotels - Hampton Inn and Comfort Suites - currently just outside city limits, with the new lodging tax revenue from those properties making up for the lodging tax the city would forgo from the new Truman property hotels.
City staff estimates the TIF funding would be about 60 percent lodging tax-driven and 40 percent property tax-driven, with a $30.1 million net benefit to the city over 25 years.
Originally, the plan stated if the TIF were approved, construction would begin on the first phase immediately with a projected completion of fall 2017, and the second phase would begin in fall 2018 with a spring 2020 projected completion. The latest delays likely would push those dates further back.
The redevelopment plan includes building two new hotels, one featuring a restaurant, both connected to a renovated version of the existing 24,000-square-foot meeting space on the property.
The first 18-month phase of construction would demolish the Truman Hotel's three outer buildings and replace them with a 121-room Holiday Inn & Suites, which would include a Cheerleader Pub and Grill restaurant.
After the Holiday Inn & Suites had been operational for a year, the second phase would begin - demolishing the main Truman Hotel building to replace it with a 131-room Courtyard by Marriott hotel. The second phase would also renovate the Truman's existing 24,000 square feet of conference space.
The Puri Group estimates the project would generate $33.29 million in increased tax revenue for the local taxing jurisdictions, as well as $62.8 million in hotel payroll, over 23 years.
Previous coverage:
Truman Hotel TIF: What happens next?, June 26, 2016
Jefferson City TIF Commission rejects Truman Hotel proposal, June 23, 2016
Board opposes TIF project for 'philosophical' reasons, June 23, 2016
New Truman Hotel funding plan proposed, June 19, 2016
Truman Hotel TIF decision delayed again, June 1, 2016
JCPS expects new TIF proposal, May 24, 2016
Developer meets with JCPS board to discuss TIF, May 10, 2016
Truman Hotel TIF meeting rescheduled, April 12, 2016
Schools historically have little power in TIF decisions, April 10, 2016
JCPS balks on proposed Truman Hotel TIF, April 6, 2016
Truman hotel seeking Tax Increment Financing for proposed developments, March 20, 2016
Truman Hotel closes, Dec. 4, 2015