Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Committee backs amendment to tax abatement for Kimpton hotel project amid financial recasting
Loading...
Summary
The committee advanced a bill to amend Ordinance No. 71830 and increase a 10‑year tax abatement from 75% to 90% for the Kimpton Hotel at 2601 Market Street after developers and SLDC said construction costs and lending conditions prompted a reduction in project scope and a request for a larger abatement to enable construction.
The HUD and Zoning Committee voted to advance board bill 169, which would amend Ordinance No. 71830 (effective June 1, 2024) to modify real‑estate tax abatement terms for a hotel project at 2601 Market Street. Steadfast City consultant Veil Meehan and representatives of Midas Hospitality said the project was resized after heightened costs and a difficult lending environment; the developer removed a planned Staybridge extended‑stay hotel and pivoted to focus on a Kimpton full‑service hotel footprint.
Veil Meehan told the committee the updated SLDC scorecard and project application support increasing the 10‑year abatement from 75% to 90% to reflect current construction costs and to allow construction to commence. Midas Hospitality vice president Sam Estapp described the request as a "last‑resort" measure after value engineering and design adjustments. SLDC's Zach Wilson said the scorecard was redone and supports the 90% abatement under the updated application.
Committee members asked about employment, MWBE, prevailing wage and whether removing the second hotel would change full‑time employment numbers; SLDC said the employment figures adjusted but the proposal still met community scorecard thresholds and that MWBE and prevailing wage and other commitments remained in place.
Alderman Aldridge moved and Alderman Browning seconded a motion to advance the bill with a due‑pass recommendation; the motion carried with no objection recorded in the committee transcript.
Next steps: the ordinance amendment will be considered by the full Board of Aldermen. The transcript records sponsor remarks, developer testimony and an SLDC endorsement; the committee record does not include a full recorded roll‑call tally.
