One of downtown Tulsa’s iconic art deco buildings is coming back as a 98-room hotel, likely with $1.7 million worth of help.
The city council has taken up a proposed six-year property tax abatement for a $24 million renovation of the Tulsa Club Building at 115 E Fifth St. The abatement freezes the property’s taxable value where it is now.
City Economic Development Coordinator Jim Coles said the abatement is a useful tool.
"All the taxing entities are all aware of it. We all share. We all take our own, individual votes that we want to contribute," Coles said. "It's really empowering us as a local community to try and help spur development. We're not reliant on anyone other than ourselves to make these things happen if we want."
All involved entities have signed off on the abatement. Final approval rests with the city council.
Since 1997, 19 downtown projects have received such abatements, which must be signed off on by every entity with property tax funding. That includes the county, the library and school districts.
Currently, 15 projects are receiving the abatements, and the city council has granted a dozen since June 2014.
The incentive isn’t allowed for retail space, however, which will account for about 13 percent of the Tulsa Club's total square footage.
"The assessor will take the building and carve out that amount of square footage and immediately provide that ad valorem to all the taxing entities," Coles said.
Steven Watts with Ross Group said Promise Hotels will manage the property. The company owns 10 Tulsa hotels and operates nine. Tulsa Club Hotel will be part of Hilton's Curio Collection.
"We'll have restaurant somewhere in the building, fine dining. There will be event space, so we're bringing the ballroom back," Watts said. "There's a two-story ballroom on the ninth and 10th floor we're going to be bringing back in its historic form. It'll be a full historic renovation, so it'll be tremendous when it's done."
The renovation involves 92,022 total square feet, of which 79,822 will be the hotel. Work may be finished in 2019.
The property value is expected to increase from $1.2 million to $20.5 million upon completion.
