Evansville needs the commerce and jobs a Downtown convention hotel will bring, and the project must not be delayed any longer, Mayor Lloyd Winnecke told the City Council Monday.
The city is to provide $37.5 million of the development’s $70 million cost, according to a predevelopment agreement with HCW of Branson, Mo. Of the city’s share, $20 million is a direct contribution to construction of the 253-room Doubletree by Hilton, which will be owned and operated by HCW. The remaining $17.5 million is to be for a 330-space parking facility, connections between the hotel property and The Centre and Ford Center and storage for the Ford Center.
HCW also plans a tower with 78 upscale apartments, and a restaurant on the property. The hotel is to include 6,400 square feet of ballroom space.
Bonds issued by the city are to be retired using tax increment financing, Casino Aztar funds and food and beverage taxes, according to city officials. The City Council was told at Monday’s called informational meeting that those three funds generate nearly $18 million in net revenue in an average year, roughly $8 million of which is currently set aside to retire debt on the Ford Center.
Debt on the hotel development’s cost is projected to be about $2 million per year for about 25 years, city financial consultant Robert Swintz with the London Witte Group.
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