Proposed renovations to Tiger Hotel could use TIF funds

The owner is requesting the city fund 20 percent of the project.

By Andrew Denney

Published April 27, 2009

A staple of Columbia's stout skyline might soon be back in business.

The Tiger, whose sign can be seen miles from Columbia's downtown area, could once again become a fully functional hotel if the city approves a financing plan to fund renovations to the building with city tax revenue.

John Ott, a Columbia developer and the owner of the hotel, applied for tax increment financing from the city to help shoulder the costs of the renovations. The use of TIF funds for development projects in the city was approved by the City Council last year and has never been used in Columbia.

TIF funds are drawn from tax revenue generated from an increase in a property's value after it has been redeveloped.

A commission formed by Mayor Darwin Hindman to coordinate TIF requests heard a proposal by Ott about the project April 9. The commission will discuss this project at a meeting 3 p.m. Tuesday at City Hall. A portion of the increased revenue collected by the city would be given back to the developer to assist them with development costs.

Ott said only the first floor of the hotel, which is used for banquets and catered events, is used, while floors two through eight contain hotel rooms that have not been used since the building was a senior living facility in 2004.

He said the renovated building would be considered a destination in and of itself.

The project is estimated to cost $9 million. Ott requested 20 percent of the costs be funded with TIF, which would amount to about $1.79 million from the financing plan.

Ott said the renovated hotel would charge above average pricing in comparison to other hotels in the city.

"I think we need hotel accommodations that meets the needs of the market we're trying to attract for the downtown area," Ott said.

The only functional hotel located downtown is the Regency Hotel.

Assistant City Manager Tony St. Romaine said it would be a tragedy for Columbia if the hotel continued to go unused. He said the renovation of the hotel, as well as planned attractions in the downtown area, such as a new site for the State Historical Society, could bring more business to the center of the city.

"We want Columbia to be a destination," St. Romaine said.

Private developers can obtain TIF funds by submitting an application to the city's Department of Planning and Development. The department will verify the project's eligibility for TIF funds along several criteria, such as whether the project will improve surrounding infrastructure, how many jobs the project would provide and what environmental considerations the developers are making. The application is then considered by the TIF Commission and brought to a vote before City Council.