Center City TIRZ board approves Herring Hotel developer agreement, 7–1

The Center City Tax Increment Reinvestment Zone No. 1 board voted 7–1 to approve a developer agreement with Herring Hotel Partners LLC to renovate the long-vacant Herring building into an upper-upscale, branded hotel.

The agreement, as described by staff, offers a 100% annual reimbursement of the ad valorem tax increment generated by the property for 10 years and a one-time grant not to exceed $900,000 for façade and infrastructure improvements. Payments are performance-based and contingent on a minimum of $90,000,000 in private capital investment, at least 200 guest rooms and completion of construction milestones; a separate $244,000 reimbursement will cover clearing a federal interest on city-owned property committed to the project.

"This is one of the shortest terms I have presented — 10 years — and everything is performance based," Drew, a tiers staff presenter, told the board, adding that rebates begin only after the hotel pays taxes each year. "If they don't hit those metrics, then they don't receive whatever incentive might have been tied to that metric."

Developer Todd Harmon said the project is structured using multiple financing sources commonly used…