Trenton officials said they will solicit proposals from private developers to redevelop a 197-room downtown hotel the city has been pursuing for purchase and renovation.

City Economic Development Director Arch Liston told the City Council the property — built around 1999 and opened in 2002 — has been closed since 2012, has suffered vandalism and copper theft and will require a major retrofit to return to active use. Liston said the city has issued an RFP (posted on the UEC website) and is seeking a private redeveloper to partner under a redevelopment agreement.

Liston said the city is pursuing a private transaction and plans not to hold or manage the hotel itself. “No, we will not go to closing on the hotel until we have the developer who we designate,” Liston said, describing a “same-day flip” approach where the city would close on the property and then sell it immediately to a pre-identified developer. He estimated renovation costs at roughly $50 million and said the property currently has about $2,500,000 in outstanding bond debt remaining from past financing that would be addressed in a sale.

The proposal anticipates mixed uses that would help downtown activity: a restaurant needing a liquor license, meeting space and at least part-hotel operation. Liston described market-driven concepts under consideration, including preserving at least 100 hotel rooms while possibly adding condominiums or long-term rental units to provide more stable year-round revenue. “Is that the end game? No. We don’t know. That’s just concepts that people have come through with,” Liston said.

Financing options discussed include private financing as the first avenue, with potential supplementary public assistance such as EDA, UEC funds or other redevelopment financing if needed. Liston told council members that the project would rely on the hotel’s future tax revenue, a 2% local hotel tax, and potential borrowing through the city’s redevelopment authority to help offset renovation costs. He said the city does not expect to use general tax revenues to cover the hotel’s outstanding bonds.

Council members asked about the status of a purchase contract; Liston said a draft purchase agreement was under review by both parties and the city hoped to have a contract by the end of the year. Council members pressed for clarity on title, litigation risk and encumbrances; Liston and the city solicitor said the administration had pulled title and was performing an expansive docket search to uncover any judgments or liens that would need to be cleared before closing.

Council members also asked about preserving a liquor license for the restaurant space and whether the license remained active; Liston said he did not believe the prior liquor license remained active and that a new purchaser would need to secure appropriate licensing, with the council serving as the local ABC authority on such matters.

Why it matters: The hotel sits near the War Memorial and the Statehouse and is seen by the administration as a potential anchor for downtown economic revival. Liston projected that if a developer was selected by late spring or early summer, construction could begin in roughly a year, but he cautioned timelines depend on market interest, due diligence and clearing title issues.

The council did not take a formal vote on the hotel purchase during the session; Liston repeatedly emphasized that the city intended a private-led redevelopment and that it would avoid long-term holding costs and operating exposure.

The administration said the RFP is publicly posted and that council and the public will have opportunities to review developer proposals as the redevelopment process proceeds.