Commission approves Hilton Garden Inn Downtown Enid hotel
Enid City Commission approved a new term sheet for the downtown hotel development Tuesday evening after the deadline passed with the former developer to close on the property transfer, the Enid News & Eagle reported.
The agreement is with Aston Management Co., a hotel ownership and management group in Oklahoma City with plans to build a Hilton Garden Inn with a minimum of 100 guest rooms, a restaurant and bar, room service and other amenities required by the Hilton Garden Inn flag, according to the term sheet.
Enid Regional Development Alliance Executive Director Brent Kisling said Aston’s owner, Atul Patel, grew up in Enid, and he generally uses local contractors and partners for projects. “It’s really like working with one of our own in order to construct this very important asset for our downtown area,” Kisling said.
Kisling said the city and ERDA have been working with several hotel developers over the last four years to finish the downtown project with a hotel property.
“The term sheet that was presented this evening will eventually become — it is a non-binding document at this point — we will use it to create the definitive contract to be voted on over the next couple of months but it does give you an outline of what the public-private partnership will be with Aston Management in order to construct this downtown hotel,” Kisling said. A public-private partnership is part of the agreement, Kisling said, adding it is performance based.
“There is a partnership agreement on the construction of the parking lot of the hotel, although it will be owned, managed and maintained by the hotel,” Kisling said. “There is also a partnership if the occupancy rate of the hotel falls below a certain level, then there would be public assistance provided. And, also, as has been the case with the rest of the developers we worked with, the property would be transferred for $1.”
ERDA will provide a 40 percent occupancy guarantee over a five-year period and provide a $200,000 grant to the developer to offset parking lot construction costs, according to the term sheet. The developer is not to seek any additional public assistance from the city of Enid or ERDA for the project, according to the term sheet.
If construction of the hotel fails to start within 45 days of the property transfer, the property will revert back to ERDA, according to the term sheet.
The room occupancy guarantee payment, according to the agreement, will be calculated on an annual basis.
Kisling said Aston Management currently owns the SpringHill Suites in Enid.
Read More at the Enid News & Eagle by Emily Summars. Photo by the Enid News and Eagle