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Ogden • City Council members, wearing their redevelopment agency hats Tuesday, approved a development agreement with former House Majority Leader Kevin Garn and Western States Lodging.
The council also conveyed a 1.79-acre parcel in its downtown Junction complex to Garn for $1.5 million, for the purpose of building a four-story hotel and parking garage.
Prior to the RDA's 6-to-1 vote — with Councilwoman Amy Wicks casting the lone vote against the venture — officials presented the $13 million project, which includes 125 hotel rooms and a 119-stall subterranean parking garage.
David Webster, a partner with Taylorsville-based Western States Lodging, said an 8,000-square-foot retail component had been stripped from the project but extra meeting rooms and conference space are planned.
The $3 million parking structure will be financed through $2.25 million in tax-exempt bonds and $750,000 in tax-increment financing.
On Dec. 7, the council will hold a public hearing to consider approval of $9 million in zone-recovery bonds for the project.
That tax-exempt funding has been allocated to each state by way of the federal stimulus and enables private entities to bond more cheaply by using cities and counties as a conduit. The municipality itself is not liable for any repayment.
Mayor Matthew Godfrey said that even with these incentives, taxpayers would not contribute a dime to the project.
"We've done something similar for every hotel in downtown Ogden," Godfrey said, noting that tax dollars were funneled to the Hampton Inn on the corner of 24th Street and Washington Boulevard. This new hotel is slated to sprout a block to the north in about 18 months.
Several area hotel managers rose to speak against the project.
"If they want to build a new property, I'm all for it," said Susan Cross, assistant general manager of Ogden's Comfort Suites and Hilton Express. "But not now. Ogden is not ready for an additional 125 rooms."
Cross said that from 2009 to 2010, area hotels fell to 55 percent occupancy rates.
"We have five very good hotels," Cross said. "Three times a year we're sold out. You'll put one hotel out of business by bringing in a new property."
Wicks said she voted against the project due to concerns about how it's being pushed through so quickly.
"I don't know if we've given it the thorough discussion and consideration it deserves," Wicks said.
Garn's plan for hotel at Junction
Hilton Garden Inn
1.79 acres at 2250 Washington Blvd.
Four stories, 125 rooms
119-stall, $3 million parking garage
Seeks $2.25 million special assessment area bond and $750,000 in tax-increment financing
Seeks $9 million in tax-exempt bonds for hotel
Completion date: June 2012
Source • Ogden City Council —
What's next for Garn's hotel
P Dec. 7, 6 p.m. • Public hearing on the $9 million tax-exempt bonds, Ogden Municipal Building, 2549 Washington Blvd.
Dec. 21, 6 p.m. • Council considers final bond resolution.
Dec. 28 • Garn closes on the property.