TOLEDO, Ohio — In a press release sent Monday, the Lucas County Commissioners made several announcements regarding the redevelopment of the Park Inn and Hotel Seagate, as well as planned upgrades to the SeaGate Centre.
The moves have been long in the making but never finalized. Slight changes from original announcements have occurred following the closure of the Park Inn.
The redevelopment of the area will be a partnership between several corporations, both public and private. The Lucas County Economic Development Corporation (LCEDC), Continental Real Estate Company and First Hospitality Group, Inc. will work on developing the old Park Inn location into two Hilton-branded hotels. First Hospitality Group Inc., also operates the Renaissance Hotel.
Through the LCEDC, Lucas County will partner with both companies for the acquisition of the Park Inn hotel. A multi-million dollar renovation will turn the Park Inn into a 216-room Hilton Garden Inn and adjacent 93-room Hilton Homewood Suites. A 120-seat restaurant is also included in the renovation plans.
The hotel will provide rooms for the adjacent SeaGate Centre. Construction is set to begin in the fall with an estimated completion in spring 2022.
The total of 309 rooms between the two spaces will more than double the amount of hotel rooms currently available in downtown Toledo.
Multiple renovations are also planned for the SeaGate Convention Centre, including an expansion and remodeling of meeting rooms, relocation of the garage entrance to Monroe Street, a "pocket park" on Summit, and the addition of a new ballroom. The Commissioners and Toledo Lucas County Convention and Visitors Bureau are applying for a $10 million CARES grant from the United States Economic Development Administration to help finance the convention center project.
The hotel renovation project is estimated to cost around $64.5 million which will be provided through both public and private sources. Lucas County will contribute $35 million in equity, which includes the $7.9 million purchase of the Park Inn and $5 for the purchase and demolition of Hotel Seagate. Continental Real Estate Company and First Hospitality Group, Inc. will invest $27 million, $20 million of which will come from a construction loan. $8 million will be provided by the Toledo-Lucas County Port Authority's Property Assessed Clean Energy financing program and a capital lease arrangement.
Lucas County will be repaid all principal and interest on funds borrowed to finance its $35 million debt service, as well as an additional 2% return on net capital and 20% of net operating income of the hotel.
The purchase of the Park Inn is expected to be finalized by late October, with the County expecting to have its $35 million in equity fully repaid over the life of the development agreement.
LCEDC will demolish the Hotel Seagate and seek bids to raze the building, to complement the current Summit St. renovation. The plan is for completion to happen before the Solheim Cup tournament in 2021. The Hotel Seagate was purchased by Lucas County in 2014 and was the initial target for a Hyatt-branded hotel. After assessment, it was determined to be too far deteriorated and renovations would not be cost-effective. The purchase and demolition of the Hotel Seagate is being funded as part of the new Hilton hotels development.
The site will be cleared and preserved for future development, but in the meantime will undergo landscaping changes to complement the convention center park planned for Summit St.
“Lucas County-driven projects – Fifth Third Field, Huntington Center – and now the Park Inn and SeaGate Center renovation and ballroom project—total nearly $250 million investment in Downtown Toledo,” said Lucas County Commissioner Pete Gerken. “Development like this takes time, persistence, and relentless dedication. We thank our partners—Frank Kass (of Continental Real Estate Company), for sharing in our vision that hotel-convention center complex will be a catalyst for the long-term growth of our county —and Steve Schwartz of First Hospitality Group, for never wavering in his commitment to bring a new hotel to downtown Toledo."
The redevelopment projects of both the hotels and SeaGate Convention Centre will result in 250 permanent jobs being added to downtown Toledo. The construction period will create 100 temporary construction jobs.
Both the renovations to the SeaGate Convention Centre and the Hilton-branded hotels are expected to be completed in 2022.