Private developers will spend $10.13 million of their own money and use about $1.58 million in tax-increment financing to redevelop the Commercial Club building at 200 N. 11th Street and the hotel next door at 216 N. 11th Street into a boutique hotel, restaurants, office space and entertainment area.
The hotel is being developed by Arizona residents Nick and Brooke Castaneda and is named after Brooke's father Ken Kindler, a Lincoln artist who died in 2014. His work will be displayed on the outside and inside of the hotel, said Kent Seacrest, a Lincoln attorney who spoke about the project to the Lincoln City Council on Monday.
Three separate companies are involved in the redevelopment, according to documents before the council.
Lincoln Commercial Club LLC, with managers Robert H. Campbell II, William D. Scott and David M. Schmidt, will renovate and restore the first two floors of the Commercial Club, keeping Misty's Restaurant in the lower level.
Cas-Neb-neda LLC, with Nicholas B. Castaneda listed as manager, is responsible for the renovation of the hotel and three-story addition, which will be called the Kindler Hotel, plus a skywalk connecting the hotel with a city-owned parking garage, according to the redevelopment agreement with the city.
Commercial Club Enterprises LLC, with Donald Miller Campbell listed as manager, will restore the Grand Ballroom and ballroom suites in the Commercial Club building, will help pay for the skywalk and may add a fifth floor with condos atop the Commercial Club building.
TIF funding will be used for interior demolition, façade improvements, the skywalk, utility improvements and streetscapes, said David Landis, director of the Urban Development Department, during a public hearing on the two-building project.
The TIF bonds will be sold to the developers or their lenders and will be repaid over 15 years by the higher property taxes the two properties will pay after redevelopment.
The current value of the property is about $1.7 million, which is expected to rise to at least $11 million after redevelopment, according to documents provided to the council.