The agreement between the city Creek and the hotel developer, Syner G, reduces the city's financing from $4.5 million to $2.75 million. The money will come through a tax incremental financing (TIF) district and be repaid over nine years, according to a report by OakCreek Patch.
Money provided by private investors, meanwhile, has increased. T2 Development raised its investment into the hotel by $500,000 and committed an estimated $1.6 million for a long-term parking lot that will be used by Mitchell International Airport travelers, according to a report to council members.
As additional collateral, Syner G agreed to provide a letter of credit for one year's worth of real estate taxes.
Put together, the changes "significantly reduce the city's risk" in the project, City Administrator Gerald Peterson said. Oak Creek officials ?previously recommended the Common Council withdraw its support? for the proposal, ?saying it presented an "unnecessary risk"? for the city and taxpayers.
Plans call for a 107-room Four Points by Sheraton Hotel that will feature a full-service restaurant, bar, fitness center, swimming pool, business center and meeting facilities. Additionally, developers are planning a 1,515-stall parking lot for airport travelers. The city will receive 5 percent of the revenue generated by the parking lot.
To reduce construction costs, the parking lot will no longer be covered.