Six months after the Midtown development in Aggieville was put on pause, City of Manhattan officials are expected to receive a progress report at Tuesday’s work session that will also include some new requests from the firm in charge of the multimillion dollar project.
Back 9 Development President T.J. Vilkanskas will present an updated timeline Tuesday, showing design and fundraising will continue through mid-year 2024 for both the Midtown project and a new hotel space to be constructed in Aggieville. Construction would begin by the middle of next year, continuing through mid-2026.
The Midtown project was paused in March after an investor backed out of the project, despite a prior verbal agreement. Vilkanskas, city officials and the Manhattan Area Chamber of Commerce have all maintained optimism throughout the duration of the pause that the project eventually would move forward.
Tuesday’s presentation will include minor modifications to the Midtown property, to include 60,000 square feet of office space, 26,000 square feet of retail space, 23,000 square feet of residential and 9,000 square feet of public space. The presentation also highlights a proposed 108-room Hampton Inn by Hilton to be constructed on the site of the Handi Corner at 11th and Laramie Streets. The hotel, which will also include a parking garage with 250 public parking stalls and 250 stalls for the hotel and Midtown project, is expected to start construction no later than October 2024.
Back 9 is also planning to incorporate the alley/12th Street redesign with the City in conjunction with the Midtown building and hotel and parking garage, with an objective of finishing all projects congruently.
Back 9 is requesting the City of Manhattan grant a one-year extension to its original 30 month development agreement, to mid-2026, noting in agenda documents that the original Midtown building will still meet all requirements of that initial agreement, including a minimum investment of $40 million. In addition, Back 9 is also seeking an amendment to the Tax Increment Financing Redevelopment Plan, to aid in a portion of the cost of the parking garage, which would include the following:
• Capture of Property Tax TIF – Capture of 100% of property tax TIF revenue generated by only the hotel and parking garage for the remainder of the TIF Term
• Sales Tax TIF – Capture 100% of (i) City sales tax TIF revenue and (ii) City’s portion of County sales taxes TIF revenue generated by the entire project for remainder of the TIF Term
• Transient Guest Tax (TGT) – Capture of 100% of TGT revenue generated by the entire project for the remainder of the TIF Term
Amending the TIF plan requires a supermajority of the Commission. Because there are only four commissioners currently seated, all four would need to support the amendment for it to pass. No vote will take place Tuesday, as it is a work session.
Other requests Back 9 intends to make Tuesday include a sales tax exemption on construction materials for the entire project, using industrial revenue bonds and that Midtown Land Company, LLC be the owner of the garage.
Tuesday’s work session begins at 6 p.m. at City Hall. Meetings are carried live on Cox Cable Channel 3, at cityofmhk.com/tv and on the City of Manhattan Facebook page.
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