OGDEN -- A proposed $13 million Hilton Garden Inn Hotel project slated for The Junction development downtown may include up to four additional businesses, says the inn's owner.
Layton developer Kevin Garn said he is currently negotiating with several restaurants and retail establishments to occupy 15,000 square feet of building space north of the hotel at 2275 Washington Blvd. He did not identify potential tenants.
The Ogden Redevelopment Agency Board, made up of the city council, would have to grant approval for businesses to operate on the property, said Terrence Bride, the city's assistant director of business development.
Garn hopes construction on buildings for the businesses can coincide with work on the 125-room hotel, expected to start in June or July.
Construction of the hotel could be completed in a year, Bride said.
The addition of retail shops and restaurants on the hotel property would be beneficial, said Richard McConkie, the city's community and economic development director.
"Any restaurants or retail businesses would complement the hotel as well as the rest of The Junction," he said.
A surface parking lot with spaces for about 50 vehicles will be built on property owned by the RDA just north of the hotel and near the area where the retail shops and restaurants may be located. The hotel will offer valet parking.
The hotel project will be funded using several different financing mechanisms, including:
SBlt $7.8 million in facilities bonds that would be repaid by Garn.
SBlt $1.5 million in tax increment bonds that would be issued by the RDA. Tax increment financing is a tool that captures projected property tax revenue created by a development and then allows those funds to be invested for improvements associated with the project.
SBlt $2.2 million in federal New Markets Tax Credits that will be sought by Garn. The tax credit program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments.
Garn is responsible for paying the remaining $1.5 million for the project, which includes the purchase of property for the hotel from the RDA for $750,000.
In addition, Garn has pledged an additional $2.2 million for the project if he is unable to obtain New Markets Tax Credits.