COLUMBIA — Construction on the DoubleTree hotel on Broadway will be delayed as the owner works to secure financing.
The Columbia City Council voted unanimously to approve an amendment to the agreement between the hotel’s developer, Dave Parmley, and the Columbia Tax Increment Financing Corporation to increase the limit on tax-increment financing for the project.
A breakdown of the costs of the Short Street garage project:
- Cost of garage property: $1.1 million
- Total Construction Cost: $12.4 million
- Hiring Walker Parking Consultants: Around $500,000
- Bid from Killian Construction: $9.6 million
- Interest rate of 2.85 percent on revenue bonds to fund garage: $2.8 million
In February 2011, the council approved the redevelopment plan for the former Regency Hotel property on Broadway.
The agreement stated that Broadway Lodging LLC would close on financing by December 2011.
Parmley said in May he would have financing in place for the $20 million DoubleTree hotel project by the start of summer.
At that point, Parmley still needed $15 million to cover the cost of the project, according to previous Missourian reports.
City Manager Mike Matthes said Parmley has a commitment of a $12 million loan for the project and that $3 million in TIF notes would cover the rest of the cost.
The amendment will increase the not-to-exceed amount of the TIF notes to include the cost of issuance. The previous amount was $3.2 million. The cost of issuance, estimated to be $33,200, will now be added to that total.
The TIF notes would not cost the city any money, Matthes said. The developer would ultimately cover the entire cost through additional property taxes.
"If it works, it's a really good investment for the city because with a little bit of time, we can turn that into significant tax revenue," Matthes said. "If it doesn't work, we're not out anything."
Matthes said he is confident the developer will lock down financing before the end of September.
Parmley will now have until Sept. 30 to close on private financing. Construction of the hotel, which would be completed within 18 months, must begin within 90 days of when financing is secured.
The former Regency Hotel has already been torn down, and Matthes said Killian Construction is currently testing the stability of the soil before the new structure is built.
Construction of the hotel and the adjacent Short Street parking garage were both planned for early- to mid-July and expected to last around 12 to 18 months.
Matthes said construction of the garage began last week.
Before the meeting, council members discussed ways to save money on the construction of the Short Street garage after the lowest bid came in at $1 million above the previous estimate from Walker Parking Consultants.
Construction of the garage was originally estimated to cost $8.6 million, but the lowest bid, from Killian Construction, was $9.6 million.
The city identified nearly $300,000 in potential budget cuts to the project when its funding went before the council for approval on June 18.
Council members met before Monday’s meeting to discuss these changes, categorized as architectural and non-architectural.
The architectural changes would save approximately $180,000 on the project. The most prominent of these changes included eliminating the steel canopies planned for the exterior of the structure.
First Ward Councilman Fred Schmidt said the canopies would be the easiest feature to add in at a later date.
However, Mayor Bob McDavid, Fifth Ward Councilwoman Helen Anthony and Sixth Ward Councilwoman Barbara Hoppe all stated that the elimination of architectural features would reduce the aesthetic quality of the garage for a negligible amount of savings.
The council ultimately decided to avoid any architectural changes.
Other Council News:
- The council voted to install speed bumps on Bourn Avenue after a public hearing on construction of traffic calming devices. Hoppe voted against the motion, which passed 6-1. Columbia residents expressed concerns about whether to use speed bumps or open-road closures. Some residents were concerned about heightened traffic in the surrounding streets.
- The council read a plan by Jon and Nathan Odle for their planned commercial 0.7-acre property located on East Locust Street. The plan includes a building with 40 units and a maximum height of 60 feet. The plan will go before the Planning and Zoning Commission on July 5 before the council votes on it at its next meeting.
- The council discussed implementing a pilot program for a new trash collection method using roll carts and automated collection vehicles. Piloting this program seeks to make the public more comfortable with the potential change. Several Columbia residents spoke in opposition of introducing roll carts, and said they are inconvenient to use.