CINCINNATI — Cincinnati developers said they are preparing to go "full force ahead" on the construction of a new convention headquarters hotel once they receive public approval of more than $100 million in public subsidies.
The hotel serves as a companion for the new First Financial Center.
Leaders from the Cincinnati Center City Development Corp. (3CDC) and the Atlanta-based hotel project developer Portman Holdings made it over their first hurdle on Monday as the Cincinnati Budget, Finance & Governance Committee passed four ordinances related to the funding.
The full city council is expected to vote on them Wednesday. Hamilton County Commissioners will also weigh in on Thursday.
"Big picture, this has been a challenging deal," Cincinnati Assistant City Manager Billy Webber said during the committee meeting on Monday. "There are a lot of different types of subsidies that are being puzzle-pieced in, both state and local."
WATCH: Where construction on the convention headquarters hotel stands
City leaders say the $543 million, four-star hotel project, located between major convention hubs in Columbus and Louisville, is crucial to attracting convention center business to the Queen City.
"Today is the kickoff of the public approvals for the convention center headquarters hotel project," 3CDC Chief Legal Officer Caitlin Felvus said. "Once that's complete, full construction will be underway, and we'll be really able to hit the ground running on the development of the full hotel."
Felvus said crews plan to break ground on the hotel site in April. The hotel itself is expected to open in late 2028.
The Marriott Hotel will be built just south of the center, on a plot of land at Plum Street and Fifth Street. It's expected to have roughly 700 rooms, more than 62,000 square feet of state-of-the-art meeting space, a 17,445 square-foot events terrace and upscale amenities tailored toward the needs of group, business and recreational travelers.
It will also have multiple ballrooms, ground-floor retail and an outdoor terrace that will overlook Fifth Street. The hotel will connect to the convention center by a sky bridge, according to Portman Holdings.
During the committee meeting on Monday, city council members approved a slew of hotel-related items, including a $50 million city loan. The loan is proposed to be made up of $10 million in savings from the convention center project and $40 million that the city council authorized last year. The latter funds will be raised through a debt issuance, according to Webber.
Another piece of the funding puzzle will come from the Port of Greater Cincinnati Development Authority.
According to Felvus, about $100 million in net bond proceeds, if given final approval, will be backed by:
- A tax increment financing (TIF) real estate abatement from the city
- A project-based transient occupancy tax (TOT) abatement from the city and county
- A new (convention district) community authority charge
The committee approved both the TIF and TOT on Monday. The community authority charge was approved by city council last year and will see businesses in the Downtown Fountain District opt in to contribute 1% or one cent of every dollar to the construction of the new Marriott convention headquarters hotel.
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"I think when you have a project of this size, it just takes a lot of different parties and a lot of different pieces to ultimately come together for a complex capital stack like this," Felvus said.
Other funding includes a $49 million grant from the state of Ohio and a $37 million state transformational mixed-use development tax credit.
During the committee meeting, leaders said renovations to the convention center garage should wrap up by April.
