The Rio Nuevo Board advanced a $38 million plan by Opwest Partners to revitalize the 23-story tower at 1 S. Church Ave. into a hotel and offices.
Opwest Partners’ project would convert eight lower floors into a hotel with about 150 rooms, 1,500 square feet of meeting space, a 4,000-square-foot restaurant and a fitness center. Floors 11 through 23 would remain office space.
Tyler Kent with Opwest said the development is expected to bring in $1.6 million in annual tax revenue in years 4 through 9 and reach $1.9 million in year 10. After year 10, that revenue is projected to reach $2 million per year.
Developers are asking the Board for eight years of insulation from property taxes using the vehicle of a Government Property Lease Excise Tax (GPLET) lease and for site-specific sales tax revenue sharing of up to $1 million.
The proposal was unanimously approved by the Rio Nuevo Board subject to the executive officers’ approval of the pending financial analysis.