Broadway Hotel second tower
COLUMBIA – The Columbia City Council voted to carry out the Tax Increment Financing, or TIF, proposed by the owner of the Broadway Hotel in downtown Columbia.
David Parmley submitted the TIF proposal in April, requesting $2 million from the city to build the second tower of the Broadway Hotel. The entire project will cost more then $20 million.
In 2014, Parmley was granted a TIF by the City Council to build the Broadway Hotel. Parmley said the amount requested has increased because the costs required for a project like this have gone up.
“In this case, the numbers are actually looking worse because the cost has increased about 38 percent over four, five years ago,” Parmley said.
The project includes the development of a second seven-story tower with 80 rooms. This will bring the total number of rooms to 194. The second tower would triple the current meeting space, adding a 6,000 square feet rooftop ballroom and another 2,000 square feet meeting space in the ground floor.
Parmley said there are not enough meeting places downtown, so building the second tower will benefit the city.
“With our hotel, we hope guests come and go out to theaters, shows, shopping and spend the money downtown. So, it counter balances to the students and brings some adults downtown.”
Kimber Dean, co-owner of Nourish Café & Market, which is across the street from the hotel, said the news of a second tower is promising for downtown businesses.
"I am excited for it. I think it's going to bring a lot more people in here. We get a lot of business people during the week, and then during the weekends when it's football games or graduation week, or something that has to do with the colleges," she said. "So, I think having a second tower will only double that."
A TIF allows developers to invest in projects with the help of the city in the form of taxes.
Tony St. Romaine, part time consultant for the City of Columbia, said that for a TIF to be accepted by the city council, the project must:
- Not be able to happen without the money from the TIF
- Not ask for a TIF that exceed 20 percent of the total amount of the project
- Contribute to the city’s infrastructure
- Have proof that it has the financial means to be completed
- Investor must personally contribute at least 15 percent
- The city has no risk involved in the project
"The financing of this project would not be feasible without the assistance and provision of public financing including, but not limited to, tax increment financing," said a letter from the Carrollton Bank supporting the TIF.
Dean said the only concern is if the downtown area has the capacity to handle the parking.
The second tower will be built at 1104 E. Walnut. Parmley said he does not currently own the property, but has a contract to purchase the property by January 2018.