The Downtown Tax Increment Finance Board on Wednesday approved giving $5.3 million to the owner of the Sinclair Building and STS Tower to support redevelopment of the property into an upscale hotel.
Of the grant, $3.4 million is for the Sinclair Building, 512 Main St., to cover the cost of such things as asbestos removal, public right-of-way improvements, and exterior historic renovations. The developer must spend at least $32 million for improvements on the building.
The remaining $1.5 million will pay for improvements to the STS Tower, formerly the Sanger Bros. Building, 515 Houston St.
The money will be given to the developer in six payments after the project is completed, starting in 2017. The grant is also tied to the spending of 25 percent of construction costs with minority- and women-owned businesses, and job creation.
The grant is also tied to completion of converting the Hilton Annex, 811 Commerce St., into apartments and parking. This month, the Lancaster Avenue Tax Increment Finance Board approved $4.7 million to support that project. All told, the developer could receive $10 million, but all three projects must be completed by Dec. 31, 2017.
The developer, Sinclair Holdings Llc. and Fossil Creek Land Partners, which owns the STS Tower, expects to begin in October converting the 16-story historic Sinclair office building into a 165-room Marriott Autograph hotel, and the adjoining office building to accommodate hotel amenities.
The Hilton Annex will provide hotel parking but will also include 140 apartments. The annex was built in 1968 on top of a parking garage built in 1928. The property had been vacant for nearly a decade when the hotel was sold. Work on that building could begin next month.
Sandra Baker, 817-390-7727