By Seth Daniel
The owners of the Wyndham Hotel returned to the City Council on Monday night to present a revised redevelopment initiative and to request reconsideration of a Tax Incremental Finance (TIF) agreement that had been previously approved but never utilized in last year’s unsuccessful renovation effort.
WEDGE Hotels President Brian Stage outlined his company’s plan before the Council on Monday, proposing a $9.8 million comprehensive renovation of the hotel to enhance its competitiveness against newer Chelsea properties. The Wyndham, which first opened in the fall of 2000, was Chelsea’s inaugural hotel.
“This plan was conceived over a year ago with a business partner,” said Stage. “That didn’t end up coming to fruition, so we have decided to do it on our own. Back then, it was going to be a Holiday Inn. Now, we’ve upgraded it to be a Hilton…We decided to make a much greater investment that will produce incremental revenue that will produce incremental hotel taxes for the City. Our company was the first to develop a hotel in Chelsea and our neighborhood has grown up nicely around us and so it is time for us to step up and improve our building so we can compete more effectively.”
The proposed work encompasses a complete overhaul of the first floor, featuring a redesigned lobby alongside new restaurant and lounge facilities. Guest rooms throughout the property would undergo full rehabilitation, with entirely new bathrooms installed. Additionally, the hotel will gain a new fitness center and business center while operating under the DoubleTree by Hilton brand.
A year prior, WEDGE had approached the Council in partnership with Colwen Hotels to undertake a lower-cost hotel redevelopment. The Council approved a TIF at that time to facilitate the project without business interruption. Significant environmental complications emerged, however, which prevented the partnership from proceeding and caused the TIF to expire.
WEDGE is now requesting a five-year TIF for this new initiative. During this period, WEDGE would maintain regular tax payments on the existing hotel, which totaled $390,586 this year. Under the proposed agreement, the company would receive a 60 percent reduction on the new assessed value in year one, generating $133,634 in property and personal property tax savings.
The discount structure would decrease over time: 55 percent in year two, 50 percent in year three, 40 percent in year four, and 30 percent in year five.
Across the five-year period, the total TIF benefit would reach $460,060.
“It’s a strategic redevelopment,” said Stage. “We could have just done some cosmetic changes and kept the hotel in business for a tenth of what we are spending, but we really think this is the right decision for the long-term health of the building and the community.”