A Sheraton Four Points Hotel could be constructed near the intersection of Howell and College avenues.
But first, the Oak Creek Common Council must approve an amendment to the project plan that would include $4.5 million in assistance from the city.
Syner G, the company developing the hotel project, initially sought no money from the city, but has asked for $4.5 million because of changes in economic conditions and the lending environment, according to a report to council members.
The money could be provided from the proceeds of a bond issued and sold by the city, payable from tax increment generated by the development, according to the report. In other words, instead of the hotel's property taxes going directly to the city, some or all of it could be diverted to pay off the loan. (The council previously enacted a tax-incremental financing district for the area in an effort to jump-start development.)
It would be paid back to the city within 17 years, the report said. That timeframe could be moved up if other elements of the plan - two more hotels, a banquet facility, two restaurants and commercial/retail space - come to fruition.
Aldermen are scheduled to debate the measure at a meeting that begins at 7 p.m. Tuesday at City Hall.
The hotel would have 107 guest rooms, a full-service restaurant, bar, fitness center, swimming pool, business center and meeting facilities.
“It is a national franchise of Sheraton aimed at the business traveler,” according to a letter from developer Greg Trapani to the city of Oak Creek.
Syner G projects the property will be valued at $21 million.
Another aspect of the development is a 1,800-space surface parking lot, which could be functional by December, and valet service for people using Mitchell International Airport.
Five percent of gross parking receipts would be payable to the city, under an agreement between Syner G and the city. Officials project the city will realize $299,000 in the first full year of occupancy.
The agreement also dictates that Syner G not request any more economic assistance from the city.