Plan emerges for $60 million hotels, conference center on Frederick Avenue
ST. JOSEPH, Mo. (News-Press NOW) -- St. Joseph could issue $60 million in revenue bonds to help finance the development of two new boutique hotels and one conference center on Frederick Avenue, proposals show.
On Monday, April 14, St. Joseph City Council members will vote on a resolution supporting the issuance of the bonds and other tax incentives as part of an agreement with STJ Hotel Group and property owner Steven Craig.
The massive development project would include 249 hotel rooms and a host of amenities, including fitness centers, lobby bars, restaurants, pools and roughly 12,640 square feet of conference center and ballroom space. Plans include more than 300 parking spaces to accommodate the facilities.
“We're working with the property owner right now to finalize plans for that site. The ultimate goal is to be ready for the World Cup, to put St. Joseph in the position to be able to attract visitors to the area, to make sure that we have enough hotel rooms to accommodate that overflow from Kansas City."
The 2026 World Cup tournament is set to kick off next June, with Kansas City being one of just 16 host cities selected across all of North America for matches.
Christian Mengel, director of marketing and communications with the St. Joseph Convention and Visitor's Bureau, said boutique hotels are a unique amenity that many businesses and corporations often seek when hosting conferences and meetings.
“Conference and meeting space is another huge aspect, especially when it's on site at a place that has a hotel. Stoney Creek is currently the only place that has a true meeting space with a hotel attached," Mengel said. "And the boutique hotel, it absolutely adds to our pitching ability for Saint Joseph."
If approved by council members, the city will help finance the project from the proceeds of the bonds, which would be repaid from revenue generated from the project. The agreement also includes real and personal property tax breaks and sales tax exemptions for the company.
The facilities would be located on a 7.7-acre site at the southeast corner of Woodbine Road and Frederick Avenue, which previously was occupied by the former Ramada Inn, Americas Value Inn and Applebee’s.
As part of the tax break agreement, STJ Hotel Group would pay real property taxes in full in the form of a PILOT (payment in lieu of taxes) for the duration of construction and the first 15 years after the project is complete. The company would then receive a 50% break for about 10 years afterward.
The agreement also includes personal property tax breaks on project equipment, 100% for years one through 15 and 50% for years 16 through 25. Construction material purchases would also be exempt from local and state sales taxes.
The project marks the second large hotel construction project in the works for the area. TownePlace Suites is in the initial phases of developing a new $7.5 million hotel just a few blocks away at 1401 N. Woodbine Road.
