Olathe’s Mayor Announces Plans for New $51M Embassy Suites Hotel and Conference Center
By Gabriel Circiog, Associate Editor
The Kansas City Business Journal reports the Olathe City Council is set to vote on a preliminary development plan with developer Heart of America Group. The Moline, IL-based developer came up with the plan shortly after the Olathe City Council terminated a development agreement with John Q. Hammonds Hotels due to the fact that their affiliate, JQH-Olathe Development LLC, informed city officials it could not obtain financing for the project.
Located in the Corporate Ridge Office Park, at the southeast corner of Kansas Highway 10 and Ridgeview Road, the Olathe Embassy Suites Hotel and Conference Center could be up to 10 stories tall, according to the proposed pre-development agreement. The proposed 200-room, 175,000-square-foot hotel will feature a swimming pool and fitness center, a high-end restaurant and lounge, as well as a business center. The development also plans to include a 22,000-square-foot conference center with a seating capacity of between 750 and 1,000 people in the main ballroom.
An estimated $19.6 million or 38.4 percent of total project costs in tax increment financing and community improvement district revenue would be redirected to the project. The proposed TIF plan could redirect incremental property taxes, 100 percent of the City’s 1 percent sales taxes and 100 percent of transient guest taxes. The reimbursement would occur on a pay-as-you-go basis semi-annually, after payment of specials. A CID would raise sales taxes 2 percent in the district boundaries and the city would issue up to $12 million GO CID special assessment revenue bonds. The City could also issue industrial revenue bonds to permit sales tax exemption on building materials and equipment purchases.
If the proposed development calendar is approved, the Embassy Suites Hotel and Conference Center could open within two years of construction start.
For more market data from Kansas City, please click here.
Photo of Holiday Inn Olathe Hotel Courtesy of: www.ichotelsgroup.com