City Approves WaterWalk Hotel
February 2, 2010
Reporter: Deb Farris
KAKE 10
The Wichita city council gave the go ahead to a $12,000,000 hotel that comes with an incentive package.
The Wichita City Council today approved an incentive package for the construction of a hotel in the WaterWalk development. The vote was 6-0, with council member Paul Gray abstaining.
The developer says because of the economy, banks aren't giving out loans. The hotel will have about 120 rooms, costing about $100 a night. The convention and visitors bureau says over the last 2-3 years, Wichita has lost a number of conventions because of the lack of downtown hotel rooms.
The hotel should be up and running sometime in 2011.
Right now this piece of land sits empty just south of the WaterWalk Condos. Developers say its prime property for a 80-120 bed hotel.
The total cost is $12 million but the developer says it won't happen without the city's help.
"It has a good chance of passing tomorrow because of all of the right reasons," said Wichita city council member Jeff Longwell.
The developer would get up to $2.5 million dollars from the city to pay for construction. Guest taxes on the new hotel would pay that money back over the next 20 years.
The developer would then be allowed to add a 2 cent tax to all hotel sales and he would not have to pay sales tax on up to $12 million in building materials and finally hotel guests could use the public parking garage at WaterWalk .
"Not only does it generate outside revenue, when it's developed it will put a quarter of a million dollars into the tax rolls via local property tax," said Longwell.
With the Hyatt so close to the newly proposed hotel, why would the city need another one? Supporters say Wichita is losing conventions because of a shortage of beds in the downtown area, and the new Fairfield Inn and Suites would attract more commercial development to the area.
KAKE 10
The Wichita city council gave the go ahead to a $12,000,000 hotel that comes with an incentive package.
The Wichita City Council today approved an incentive package for the construction of a hotel in the WaterWalk development. The vote was 6-0, with council member Paul Gray abstaining.
The developer says because of the economy, banks aren't giving out loans. The hotel will have about 120 rooms, costing about $100 a night. The convention and visitors bureau says over the last 2-3 years, Wichita has lost a number of conventions because of the lack of downtown hotel rooms.
The hotel should be up and running sometime in 2011.
Right now this piece of land sits empty just south of the WaterWalk Condos. Developers say its prime property for a 80-120 bed hotel.
The total cost is $12 million but the developer says it won't happen without the city's help.
"It has a good chance of passing tomorrow because of all of the right reasons," said Wichita city council member Jeff Longwell.
The developer would get up to $2.5 million dollars from the city to pay for construction. Guest taxes on the new hotel would pay that money back over the next 20 years.
The developer would then be allowed to add a 2 cent tax to all hotel sales and he would not have to pay sales tax on up to $12 million in building materials and finally hotel guests could use the public parking garage at WaterWalk .
"Not only does it generate outside revenue, when it's developed it will put a quarter of a million dollars into the tax rolls via local property tax," said Longwell.
With the Hyatt so close to the newly proposed hotel, why would the city need another one? Supporters say Wichita is losing conventions because of a shortage of beds in the downtown area, and the new Fairfield Inn and Suites would attract more commercial development to the area.
