Council gives due-pass to hotel project at South Phoenix Parkway; committee and full council back abatement

The Fort Wayne Common Council advanced a confirming resolution to designate 1661 South Phoenix Parkway as an economic revitalization area, clearing the tax-phase-in incentive requested by F and D Hospitality Group LLC for an 80-room hotel.

Andrea Robinson of Economic Development explained the project would represent a $9,500,000 investment on a city-owned lot in South Towne Center that has been vacant for about 22 years. Robinson said the proposal would create three new full-time jobs with total annual payroll of $138,500 and eight part-time positions. She described the proposal as aligned with the city’s Southeast strategy.

Quentin Dixie, who was introduced to answer questions about the hotel, said the hotel element was an important part of the Southeast strategy to catalyze later restaurant and retail development. Council members asked about TIF funding and whether infrastructure and long-term maintenance were addressed; Robinson said a TIF district was being coordinated with the Redevelopment Commission to help pay a portion of the project.

Several members voiced support for using a stair-stepped tax abatement to attract investment on otherwise vacant city-owned land. The finance committee recorded a "due pass" recommendation for R260218 with eight members in favor and one against. The council later recorded final passage of the set of economic revitalization resolutions on the regular-session agenda.

The resolution does not require the city to provide cash up front; Robinson said the abatement phases the tax obligation. The council did not record an individual dollar-for-dollar purchase price for the lot during the discussion; Robinson said she had not been part of land-sale negotiations and that a purchase price was "not this time, no."