A $24.7 million financial incentive package for restoring the historic Laura Street Trio won unanimous backing Wednesday from Downtown Investment Authority as its board members noted the high cost but said the benefits will ripple beyond the Trio's century-old walls.
The three buildings were constructed between 1902 and 1912 and have been vacant for decades, despite their place in the heart of downtown and their architectural significance.
SouthEast Development Group plans a $70 million renovation of the Trio and construction of a new eight-floor building that together would create a Marriott Autograph Collection hotel with restaurants, a bodega, and other retail space.
"I recognize this is a great deal of money in terms of incentives, and we will be cognizant of that as we restore these buildings to the highest standard," SouthEast Principal Steve Atkins told the board after its unanimous vote.
The incentives will come from the Downtown Preservation and Rehabilitation Program that City Council created last year.
The $24.7 million in taxpayer support for the Trio consists of city loans, but the city would forgive $19.4 million of the loans if SouthEast Group complies with terms of the agreement.
A third loan for $5.3 million would only require interest payments until it became due in 10 years.
The city would provide the loans after work is done, so the money won't go up-front to the developer.
The DIA board's approval will go to City Council for its vote on the incentives.
DIA board member Oliver Barakat said the cost of the redevelopment project equates to about $440 per square foot, with the taxpayer incentive share of that cost at about $150 per square foot.
"These are high, potentially record watermarks for this organization," he said. "If there was a project to get us there, it would be this one."
He said the Downtown Investment Authority has been seeking redevelopment of Laura Street Trio since the city formed the agency in 2012.
"We appreciate your tenacity," DIA board member Craig Gibbs told Atkins.
SouthEast has a track record in downtown because it completed restoration of the Barnett Bank building across the street from the Trio.
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