TOPEKA (KSNT)—The bids for taking over Hotel Topeka are wide-ranging. 27 News has obtained bidding information for seven parties interested in taking over the city-owned hotel, which taxpayers have invested $10 million in.
The proposals are wide-ranging, including $0 proposals, significant tax breaks and requiring taxpayers to provide full-time security for the hotel connected to the Stormont Vail Event Center. Multiple developers have said it will take at least $15 million to renovate the location to become a flagship hotel with major branding on the outside, which city leaders have deemed important.
Here’s a summary of the bids:
Dave Sandir
- The City of Topeka sent Dave Sandir, President at Commercial Group, Inc. in Topeka, a basic deal structure to purchase and convert the hotel to a Doubletree by Hilton.
- According to the correspondence, the developer would acquire the hotel for $15 million.
- The City of Topeka would offer the developer a $15 million economic development grant.
- The City would offer a 20-year property tax increment financing deal starting in year two after converting to Doubletree.
1717 Realty Corp
- Made a final offer to acquire the hotel by paying $2 million towards the city's debt on it.
- The deal would see the hotel rebranded as a Wyndham Hotels and Resorts hotel.
- In July, the City of Topeka rejected the offer.
- The company responded to the city, saying, "We find it extremely difficult to believe that Topeka is vested in this project without having a personal interaction to make a successful deal vs. bid on a deal."
Irshad Chatta
- Offered to purchase the hotel for $6 million with a $1.5 million down payment.
- Chatta owns a local company, Topeka Corporate, LLC. Chatta has 25 years in the hotel business, according to the letter of intent.
Topeka Core Community Development Corporation
- Local businessman Chris Stemler has offered to take over the hotel as a nonprofit.
- The nonprofit would oversee the hotel with the goal of converting it into a DoubleTree by Hilton.
- The nonprofit would use the hotel’s equity to obtain a loan for hotel renovations.
- The city would provide a guarantee on the loan while renovations are made.
- The city would agree to a property tax structure to actively pay back the city over 20 years.
- An advisory board staffed by Topekans would recommend monthly status updates.
Full Service Hospitality
- Full Service Hospitality offered to take over the hotel's operation with no purchase price.
- Estimated renovation costs of $15 million.
- Full Service Hospitality would take a loan for about $10 million of the expected renovation cost and inject about $3.5 million into the project.
- The company requested the city offer all of the hotel tax, property tax and TIF incentives for 20 years or until the investment is paid back.
Endeavor Hotel Group
- Endeavor Hotel Group expects a full-scope renovation of Hotel Topeka to cost $7.25 million. The company believes $10 million in funding will be needed.
- The company didn't make a formal offer on the hotel.
Sarhan Hotel Group
- Sarhan Hotel Group made a letter of intent to purchase the hotel for $6 million.
- The group requested the city provide tax incentives and pay for full-time security.
- The offer was made on Nov. 11, and expired Nov. 25.
There are lots of options currently being evaluated by the city in order to develop Hotel Topeka. The city has not committed to any one path at this time. Negotiations are very much in flux.
City of Topeka Director of Communications Dan Garrett told 27 News.
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