City of Paducah welcomes new hotel project
PADUCAH, Ky. (KBSI) – The City of Paducah will soon begin work on a new hotel.
Located on 519 North 3rd Street the property is across from the Holiday Inn Paducah Riverfront and within walking distance to the Paducah Convention Center complex in downtown Paducah.
The City purchased this property in 2015 and it was previously a nursing home and hospital.
George Bray said, “I think their timing is good with the Sports Park being built, more rooms being required, and downtown still growing. It’s a good opportunity for us, and I think, growth begets growth.”
In the Municipal Order, the City agrees to convey the property to the developer; however, if the developer defaults, the city would be able to regain ownership of the property. The City and developer will agree upon the hotel’s brand and number of rooms.
The hotel is to be completed within 24 months once an approved start date is set.
City Manager Daron Jordan said the developer is meeting with a national brand next week with the hope of announcing the hotel’s brand later this month.
At this time, the hotel is proposed to have four stories, approximately 120 rooms, an indoor swimming pool, and a dining area. The developer plans to hold a public meeting to gather input on the hotel as well. The developer anticipates a $15 million investment and have demonstrated they have the funding in place.
With the developer’s investment, the city is outlining an incentive plan to include the following reimbursements:
- Reimburse the developer up to $250,000 in infrastructure costs.
- Reimburse the developer up to $15,000 per year over a five-year period for payroll taxes.
- Reimburse the developer up to $100,000 per over a five-year period for real estate taxes.
