PARKERSBURG - Officials are working on a deal to construct a 100-unit hotel in Parkersburg near the traffic circle.
Next week members of the Parkersburg City Council Finance Committee will consider a proposed cooperation agreement between the city and MPH Hotels to develop a 100-unit hotel. Officials are hoping to construct the hotel on the Henry Logan Head Start Center site on 24th Street.
"Our intention is to develop a 100-unit, upscale national-franchised hotel," said Michael Holtz, president and CEO of MPH Hotels.
Officials with MPH Hotels have contracted to buy the Henry Logan Head Start Center on 24th Street to construct an $8 million-$9 million national-franchise hotel. The 100-unit hotel is slated for construction this spring. Mayor Bob Newell said once complete, officials anticipate about $185,000 in annual hotel/motel tax, of which $90,000 goes to the city. (Photo by Jeff Baughan)
Holtz said the proposed hotel will be an $8 million-$9 million project.
"We think it will be one of the premiere franchise hotels in the marketplace, and we are really looking forward to it," he said.
Pat Minnite Sr., with the PM Co., is an investor in the project.
"It is in the works," Minnite said. "We are contracting to buy that piece of land and build a hotel."
Holtz said officials are in the "due diligence stage" of soil testing and environmental reviews.
Officials are looking at a spring groundbreaking, he said.
Mayor Bob Newell said the location is nice, with good visibility from the Memorial Bridge and other areas.
The group is the same partnership that recently completed an $8 million Fairfield Inn on Ohio 7 near the Marietta Country Club. Officials have also announced a Comfort Suites in Marietta.
The group also owns the Wingate Inn in Vienna and the Holiday Inn Express in Mineral Wells.
"We know the market pretty well," Holtz said.
Under the cooperation agreement, the city would grant the hotel a B&O tax credit/exemption for a five-year period from its commencement, as well as on all construction costs. The exemption is different for the step-rate B&O rate council is also debating for new businesses.
The city would also assist in the development of the site in the amount of $200,000 payable in two, $100,000 payments. The hotel would create at least 15 full-time jobs that would be maintained for at least five years. Newell said the $200,000 is CDBG money.
"It's (Community Development Block Grant) money to create jobs," the mayor said. Newell said that has been done for other businesses, such as Highmark West Virginia, when its new headquarters was built.
Holtz said Newell was aggressive in helping assist the deal.
"He was wanting us to get a place inside Parkersburg and convincing us to build."
According to the cooperation agreement, the hotel is expected to develop a 100-unit hotel, including approximately 37 suites. The hotel will feature an indoor pool and exercise facility.
Earlier this spring Newell announced officials were interested in developing a 100-room hotel and restaurant on Fifth Street, where the Salvation Army is located. An on-site, free-standing restaurant does not appear to be in the plans for the hotel.
Holtz said there are contingencies (conference center or free-standing restaurant) on this site.
"This is a much cleaner deal," Holtz said.
Newell said the city will also work with state highway officials on ingress and egress at the site. Newell said developers have expressed a need to access Emerson Avenue.
"We will help them work with the state when it comes to traffic and stormwater issues."
Newell said once complete, officials anticipate about $185,000 in annual hotel/motel tax.
"Of which, $90,000 goes directly to the city."