Aug. 02–CLARKSVILLE — As part of an effort to help spur development in the Broadway area of Clarksville, The Clarksville Town Council voted Monday to grant a forgivable loan for a new hotel.
The council entered into an agreement Monday with Sethi Development, LLC, for a forgivable loan of up to $100,000 over four years for water and stormwater infrastructure for the development of a four-story, 105-room Home2 Suites by Hilton development on Broadway Street south of Veterans Parkway in Clarksville.
"It's kind of a mix between a leisure/professional/extended-stay kind of place," Clarksville Redevelopment director Dylan Fisher said. "Looking at particularly travel sports teams, kind of a family environment to get larger groups in there."
The development plan has been in front of the Clarksville technical review committee once, and planning director Sharon Wilson said when they return for second review, they should have identified ways to achieve water and stormwater infrastructure. This second review will be later this month, before going to the plan commission.
According to the agreement, the development must be complete by June 1, 2017. If any of the conditions are forfeited, the developer would owe the town 100 percent of the loan if defaulted the first year and 50 percent if defaulted the second or third year.
This includes that the facility may not be transferred to use as a not for profit facility during this time, that it would be subject to semi annual reviews and that it would provide a baseline for employment and not drop below it during loan period. The forgivable loan will be be paid out of Taxable Economic Development Income Tax.
Clarksville Redevelopment director Dylan Fisher said the developer has a target date to start October of this year. Another hotel in the area owned by the same company, Candlewood Inn & Suites, took nine months for construction from start to finish, and Fisher said they anticipate a similar timeline.
He said the new place for lodging will add to the hospitality in the area and contribute to revitalization plans.
"As part of the Broadway district study when we did it last year, we identified that area … as a potential for additional hospitality," he said. "That's kind of been the vision for that area for 15 years, going back to when Veterans Parkway first opened."
He said there are other adjacent properties under the same owner that the developer has talked about constructing other hotels on later on down the road.
"It has the opportunity to very much spur development down there (and) establish that portion of Clarksville as a nice hospitality (area) and bring additional hotels," he said. "As development and amenities continue to increase in Southern Indiana, there's going to be additional need for more hospitality on this side of the river."