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City of Warren applies for state funds to build hotel

These empty parcels owned by the City of Warren at the base of Liberty St. and Clark St. are the focus of a state funding application that proposes the construction of a downtown hotel.

The City of Warren has submitted an application for state funding that would result in the construction of a hotel at the base of Liberty Street in downtown Warren.

The application seeks $7,026,000 through the state’s Redevelopment Assistance Capital Program (RACP) to be matched locally by the assessed value of city property, a loan to be taken out by the city and private investment.

City Manager Nancy Freenock said the application was submitted last month.

“The City contacted a number of hotel developers to discuss the construction of a full-service hotel to be located on the riverfront, proximate to downtown Warren, in the area once identified as the situs of Impact Warren,” the application, provided by the city, states. “The solicited developers requested grant assistance in the amount of $3,000,000. In addition to the hotel, streetscape and infrastructure improvements are needed to complete riverfront development at a cost of $4,026,000.”

Total cost of the project, according to the application, is $14,052,000.

The application details that the city is looking to use the appraised value of the city-owned property along Clark St. where the hotel would be built – appraised at $1,026,000 – as part of a match along with private investment totaling $4,584,000 with “the remainder of the match being proceeds of a $1,416,000 loan to be taken by the City.”

The property the city owns where the hotel would be located would be “sold or donated subject to the terms and conditions of the RACP award.”

Numerous infrastructure projects are outlined in the application – curbs, catch basins, storm sewers as well as “sidewalk, conduit, traffic control, temporary pedestrian access, light poles, electric panels and wiring and terminations,” according to the application.

Utility relocation would be included as well as “ADA (American with Disabilities Act) curb ramps, seeding and restoration” with estimates based on previous projects.

The application then details the hotel proposal.

“Brimark Builders, LLC is the construction arm of Cobblestone Inn & Suites and this estimate was prepared based on recent projects of similar scope and size and is representative of industry standards,” the application states. “It is anticipated that a 40 to 60 room hotel will be constructed on the site with the developer to be determined.

“Development costs are comprised of… land $100,000; building construction $5,200,000; fixtures, furnishings and equipment $994,000 (and) indirect costs (of) $1,290,000.”

The application cites the city’s downtown strategic plan which “evidenced the need for a downtown hotel…. Reconfiguring an existing road will result in the creation of a parcel large enough for a hotel.”

Benefits cited include increased lodging opportunities, street improvements and “the addition of sidewalks and streetlights on Clark St.” which will “enhance the riverfront and make it more accessible in this walkable community.”

The improvements would also “aid in attracting tenants to an industrial building” – the former Loranger building – that is now under renovation.

“Once the City has developed a buildable parcel by moving overhead and underground utilities and realigning a portion of Clark Street, an RFP (request for proposals) for construction of a hotel on the site will be let. The successful hotel developer will be a sub-grantee for the purposes of $3,000,000 of the total RACP award,” the application explains.

Should the project be funded by the state, a proposed schedule details the award being made next January and the hotel completed by July 2020.

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