Cincinnati City Council gave initial approval Monday to about $150 million in funding for a new 700-room convention center hotel. The four ordinances approved in committee are expected to be up for a final City Council vote Wednesday.
3CDC is managing the project with Atlanta-based developer Portman Holdings. Marriott will operate the hotel.
3CDC Chief Legal Officer Caitlin Felvus says this step, and a few subsequent approvals from Hamilton County, means they can move forward with financial closing, with an expectation to break ground this spring.
“What this hotel will bring is not just a physical space, but dedicated room blocks for our colleagues at Visit Cincy … to be able to bring in conventions to go hand-in-hand with the convention center,” Felvus said. “There’s also additional dedicated meeting space that can complement what’s going on at the convention center.”
Council’s Budget, Finance and Governance Committee approved a $50 million forgivable loan, $10 million of which is savings from renovation of the convention center itself (now named First Financial Center). The city will take out a bond for the loan.
The Port will take out bonds for more than $100 million, backed by three revenue sources. Council approved one of them last year: a Convention District Community Authority, in which restaurants, bars and entertainment venues in the area have agreed to charge a 1% fee to support the convention hotel.
Council approved the other two Monday: a 30-year property tax exemption and a 30-year transient occupancy tax exemption. In both cases, the tax revenue that would have gone to the city and to Hamilton County will instead go toward paying off The Port’s construction bonds. Cincinnati Public Schools will still receive its portion of new property tax revenue.
“We’re just really excited to have finally gotten to this point, and excited to get started on the project in a meaningful way that the public can see,” Felvus said.
The total project will cost about $543 million. Other funding sources include private financing, a $49 million grant from the state of Ohio, and a $37 million State Transformational Mixed-Use Development Tax Credit.
Construction on the hotel is expected to be complete in Sept. 2028.
3CDC is wrapping up renovation of the former Whex Garage on Fourth Street. The garage will remain at least partially open during the rest of construction, which is expected to wrap up in April.
Eventually, a covered sky bridge will connect the parking garage and hotel to the First Financial Center across the street.
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