The Jefferson City Housing Authority Board received an unexpected surprise Wednesday when the developer of Holiday Inn & Suites said he wouldn't need a redevelopment extension because the new hotel is opening today.
Vivek Puri, who is developing the former Truman Hotel site, told the board: "I just wanted to thank you for everything you've done. We tried to keep as much money in Jefferson City as possible. The contractors for mechanical and electrical work were local as were bricklayers and concrete. A lot of money stayed in the local economy."
Puri said the hotel will be a state of the art facility. "I can honestly say that this is the best hotel that I have built," he said.
In February 2017, the Jefferson City Council approved a plan for Puri Group Enterprises Hospitality Inc. (PGE) to redevelop plots occupied by the Truman Hotel at 1510 and 1590 Jefferson St.; the council had deemed the sites as blighted.
The blight designation granted Chapter 99 property tax abatements on both parcels for 10 years if the Jefferson City Housing Authority, which oversees the abatements, later signed off on the abatements. About a month later, the Housing Authority signed a contract with Puri that stipulated its requirements to build only the Holiday Inn at 1590 Jefferson St.
Puri had to start construction on the $56 million project within 90 days of the council's approval of the plan. Eighteen months after construction started in June 2017, construction of the first phase of the hotel had to be finished, according to the contract. With construction that started in June 2017, Puri had to be finished with the hotel by the end of December 2018 under the agreement.
Puri attributed the delays to issues that arose after the old building had been torn down.
"Being in Jefferson City, we thought we'd hit solid rock, but it wasn't there," he said. "Instead, we had a lot of fill and old debris from old construction. We found things like old piping and abandoned sewers in this area. It was where the foundation was, and remember, this is a steel structure which is not very lite. Getting all that out added an extra four months in the project timeline."
Puri said they didn't get concrete in until October. Then the harsh winter weather also caused delays.
"For the last month and a half, we've been putting 16-hour shifts in to get this project completed," he said.
Puri said the last few remaining health inspections for the Cheerleader Pub & Grill, a chain restaurant owned by Puri which will be part of the hotel, were being done Wednesday.
When it opens today, the third, fourth and fifth floors will be open for people to stay in those 92 rooms, he said. The bottom two floors, which includes the pool area, will be completed in the next couple of weeks.
When completed, there will be 131 rooms in the hotel. He said they have 42 people hired, and his payroll is estimated at $1.2 million.
A grand opening is planned for June or July, and some of the top officials from Holiday Inn are scheduled to be there as some of the design work in this hotel is the first to be done in the chain.
Housing Authority board chairman Larry Vincent asked Puri about his plans for the remaining section of the hotel. Puri said the plan is to tear down the remaining two buildings.
"We want to get rid of it as soon as possible, and the asbestos abatement has already been done," he said. "I know that was part of phase two of this project that we wanted to talk about with you guys, and we want to meet with you as soon as possible."
Puri said he didn't want the property remaining in place while the new hotel is opening, but he doesn't have much choice.
"I don't like it because people have been breaking into it quite frequently," Puri said. "We actually had someone break in during the recent ice storm and set a fire. That's not what I want sitting right next to a new hotel."
Cynthia Quetsch, Jefferson City Housing Authority executive director, said last month that PGE will need to sign another contract with the Housing Authority before the company can build a second hotel.
"It only addresses the one plot at this time," Quetsch said of the first agreement. "There will be a second redevelopment contract for the next hotel."
During the second phase, an unnamed four-story, 125-room business class hotel would be built under the current development plan. A conference center would also be built during the second phase, and the two new hotels would be connected via breezeways, according to the plan.
In the contract, the Housing Authority stated it agreed to the 10-year property tax abatement because it thought the blighted area around the property would be improved by the project.
Puri said people have been making reservations to get into the new hotel and he added he hoped renovations taking place at another of the company's properties, Hampton Inn on Country Club Drive, would be completed in the near future.