Incentives approved for renovation of Hotel Fort Des Moines
BPC Staff Aug 10, 2016 | 9:24 pm
1 min read time
204 wordsAll Latest News, Government Policy and Law, Real Estate and DevelopmentThe Des Moines City Council has approved an economic development package worth an estimated $4 million for the planned $37 million renovation of the shuttered Hotel Fort Des Moines.
Janssen Lodging LLC, operated by the Patel family that built the Residence Inn and Hampton Inn and Suites downtown, plans to start work in June 2017 with an anticipated completion date of December 2019, according to a report to the council.
The city funds would be paid out over 20 years in semiannual installments and would be generated by tax increment finance funds from the city’s Metro Center Urban Renewal area. It is estimated that once it is open, the hotel will generate nearly $10 million in hotel/motel tax revenues over 20 years.
Janssen Lodging wants to carry out a project initially launched by former owner Jeff Hunter. The Burlington-based company bought the 99-year-old hotel for $4 million in 2015 and later closed the doors while it attempted to work out financing that became more complicated when a reservation of historic tax credits expired.
The city has created a long list of expectations for the project and plans additional oversight through the Urban Design Review Board. The agreement and conditions are outlined in this document.
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