April 03, 2013--Developers of a proposed new Holiday Inn Express in Hutchinson expect to break ground on the project just south of 11th Avenue in mid- to late-May, with completion expected by March of next year.

Mitesh Patel of Wichita was at Tuesday's Hutchinson City Council meeting seeking formal approval for $5 million in city-issued industrial revenue bonds to build the project, which the council unanimously granted.

The council previously adopted a resolution indicating its intent to issue the bonds. Tuesday's action authorizes their sale. The debt service on the bonds will be paid entirely by the developer, and the city will be the leaseholder of the property until the bonds are retired.

The 76-bed hotel will go up on a 2.5-acre property sandwiched between the Porter Commons subsidized-housing complex and a string of restaurants on 11th Avenue.

While announced nearly a year ago, Patel and his partner, Raju Sheth of Wichita, wanted to wait until another hotel they were building at the time on the west side of K-61 was developed and "stabilized," Patel said. That hotel, a Fairfield Inn, "is doing well," Patel said.

The council previously also approved creating a special community improvement district for the hotel property, allowing the developers to collect an extra 2 percent sales tax to help pay for $1.5 million in furniture, fixtures and other equipment.

While the property also qualified for tax breaks under the Neighborhood Revitalization Program, noted City Manager John Deardoff, the developers didn't seek them.

In other business Tuesday:

l The council adopted ordinances or resolutions authorizing more than a dozen projects using General Obligation bonds and set a bid opening on the cumulative $4.64 million in bonds for 10 a.m. May 6. The council will then take up the bids at its regular meeting the following day.

Those projects and expected costs include: Runway 17-34 extension, design and land acquisition, $44,463; Fire Training Center roof, $81,520; Waldron Street reconstruction and widening from 17th to 23rd, $725,000, and from 30th to 33rd, $350,000; 43rd Avenue Park development, phase 1, $300,000; Parking lot at C Avenue and Main Street, $185,000; expansion of Park Department office, $180,000; levee certification improvements, $520,000; Salt City Business Park III, refund temporary notes used for land acquisition and development, $1.63 million; Plaza East development, $323,206; Sherwood Hills development, $167,511; turning lane on 17th Avenue at the mall, $88,164; and Main Street railroad crossing improvements, $61,314.

l The council also OK'd a conditional use permit to allow development of a towing business and vehicle impoundment lot at 3400 E. Fourth Ave., across the street from the Fire Department Training Center, for a Marion company that also has locations in Newton, Salina and Galva.

The lot will be enclosed by a solid 7-foot high $85,000 cinderblock wall, and have a 60-by-80 foot fabricated steel office building. The business, Auto House Inc., owned by Jeff Turner and Chris Unruh, will employ two people full time and two part time, city staff advised.

l The council awarded a low bid of $416,000 to Dondlinger and Sons to rebuild the 840-foot long Fourth Avenue bridge over Cow Creek. Ninety working days are allocated for the project, during which the bridge will be closed and traffic detoured to Fifth Avenue, said City Engineer Brian Clennan.

l The council issued a warranty deed to New Beginnings Inc., for property on Fifth Avenue, across from Dillons, for development of a dozen town homes that will built around a communal playground.

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