Dec 04, 2022

Proposal for $18 million hotel and conference center on Tuesday city agenda

Posted Dec 04, 2022 10:30 AM

Correction: Agenda documents provided to Hutch Post incorrectly listed the hotel as a 165-room facility. It will actually be 100 rooms, with 65 of them having two beds. Hutch Post regrets the error.

NICK GOSNELL
Hutch Post

HUTCHINSON, Kan. — A hotel proposal to address the city's needs for additional rooms to retain large events like the NJCAA Men's Basketball Tournament is on the agenda for the Hutchinson City Council on Tuesday.

From the legal description of the land involved, it would be on parcels behind the Olive Garden and Mattress Firm where Waldron curves around between Aldi and 23rd.

According to agenda documents, the City of Hutchinson has been in need of additional hotel accommodations for the activities and events which occur within its City limits. Further, the City of Hutchinson is in need of a functioning conference center for meeting space for community groups and guests of hotel properties. Multiple studies and attempts to develop a hotel and conference center within the City have been made over the past several years without success.

The Resolution and Development Agreement before the council Tuesday proposes the construction of a hotel, conference center and restaurant by Amber Hotel, LLC. The developer will make an initial investment of at least Eighteen Million Dollars ($18,000,000.00) to construct an upper mid-scale hotel with 100 sleeping rooms, with 65 of them double-bedded, a conference room of a minimum 15,000 sq. ft. including pre-function space and a franchise sit-down restaurant.

The City of Hutchinson will commit to the following:

1. One Million Dollars ($1,000,000.00) will be paid to the developer upon the completed construction of the hotel, conference center and franchise restaurant.

2. The City will approve a Community Improvement District for the hotel project of two percent (2%).

3. The City will issue a Letter of Intent to issue Eighteen Million Dollars ($18,000,000.00) in Industrial Revenue Bonds.

4. The City shall pay to the developer Fifty Thousand Dollars ($50,000.00) per year for the first three (3) years of operation of the hotel after the Certificate of Occupancy has been issued.

5. The City of Hutchinson will pay three percent (3%) of the seven percent (7%) transient guest taxes to the developer as long as the facility is operated as an upper mid-scale hotel pursuant to the Smith Travel Research Standards.

The Hutchinson City Council meets at 9 a.m. Tuesday at City Hall.

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