By Jennifer Jacob Brown
The developer of the Threefoot project has informed city administration that they are in need of additional funding for the restoration of downtown's Threefoot building into a hotel.
A project update issued to the city by developer HRI Properties stated that a need for an additional $6.6 million was found when construction pricing was updated.
Josh Collen, vice president of development for HRI, said the developer "(has) no intention to ask the city for additional funds." Rather, they want the city to assist in finding the $6.6 million from other sources.
According to the project update issued to city administration, "HRI has identified a specific strategy containing several potential opportunities to increase funding for the Project and wishes to collaborate with the City to pursue these and identify others."
Meridian Chief Administrative Officer Mark McDonald said HRI has also asked that the city resolve problems with storm drainage downtown before construction begins. The drainage problems recently resulted in flooding that disabled an elevator in the Threefoot building. McDonald said fixing the drainage problem will cost roughly $2 million.
Collen said HRI may make a presentation at the next city council meeting, but would not say what the presentation will entail.
Early this year, the city council agreed to provide $14 million in funding for the restoration, to be paid back by the project from hotel revenue. At that time, the estimated total cost of the project was around $50 million.
Though McDonald has expressed reservations about the Threefoot project specifically, he said that downtown needs a hotel of some sort.
"The city needs a hotel downtown. There's just no two ways about it," he said. "But it ought to be more private (in its funding) than public."
HRI has developed historic properties around the Southeast, and will hold a ribbon cutting next month for Jackson's recently renovated King Edward Hotel.
Other projects
Two projects funded completely by the city are on schedule, McDonald and Finance and Records Director Ed Skipper said.
The historic restoration of City Hall, Skipper said, is currently in its final phase and is on track to be completed by early 2011.
Skipper said the final phase takes place in the interior of the building and includes installing an elevator, re-installing a second staircase, making historic restorations, and installing fixtures and furnishing, among other things.
McDonald said the 22nd Avenue bridge renovation is moving along and that, "As long as the rain stays away, we'll be doing good."
He said plans are to open half of the bridge to two-way traffic by early December.
