Tuesday, April 3, 2012

City working to bring hotel to Keystone Parke

The City is working with Neyer Properties to amend a 2007 development agreement to support the construction of a new hotel at Keystone Parke in Evanston, which would require additional $3 million in tax increment financing (TIF) funding to support a public parking garage.

Neyer announced plans for the hotel late last year. However, the original development agreement makes no provision for a hotel on the site, and provides no dedicated TIF funding for a parking structure.

But the City will not pledge any non-tax revenues as a credit enhancement for any additional bonds that would be serviced by TIF funding, which it sometimes uses when the economic benefits of income tax revenue increases is deemed to outweigh the risks.

The City is exploring various loans and grants that could serve as the credit enhancement.

The multi-phased, $100 million Keystone Parke currently includes Keystone Parke Building I – a 66,000-square-foot building that serves as Neyer Properties' headquarters – and the 45,000-square-foot headquarters for the Cincinnati chapter of the American Red Cross.

Future phases are expected to include an eight-floor, 208,800-square-foot office building; a five-story, 115,000-square-foot office building; a four-story, 62,000-square-foot office building; an 11,000-square-foot retail building; and improvements to Evanston Playfield.

Previous reading on BC:
$1.4M Job Ready Sites grant to remake part of Evanston (7/19/10)
River Road, Dana Avenue projects advance (6/23/10)
Cincinnati to apply for $1.4M grant for I-71/Dana interchange (5/21/08)
Cincinnati approves Keystone outlot, public access (5/12/08)
EDC to hear on zoning change for Keystone outlot (5/2/08)