NEWS
Albuquerque City Council greenlights $40 million in tax incentives for Sawmill hotel
After delays for public input, hotel to move forward with city support
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Plans for a midsized hotel in the Sawmill area are moving forward after the Albuquerque City Council approved more than $40 million in tax incentives at Monday鈥檚 meeting.
Some local business owners welcome the hotel, saying it will create a more affordable option for tourists. Residents, however, warned that the hotel will disrupt the historic neighborhood and worsen traffic.
Monday night, the council overwhelmingly sided with the developer, Albuquerque-based Sun Capital Hotels.
鈥淚f we don鈥檛 incentivize certain larger projects 鈥� they鈥檙e not going to happen,鈥� said Councilor Brook Bassan. 鈥淲e鈥檙e going to have a vacant building on a vacant piece of property that causes a whole other problem we鈥檝e been facing.鈥�
The ordinance approved millions in industrial revenue bonds, or IRBs, a financing tool commonly used by states and municipalities to encourage development. Under this arrangement, private companies are not paid taxpayer dollars; rather, local governments agree not to impose taxes on developments for the duration of a bond so long as the company meets agreed-upon requirements.
Ultimately, the tax abatement for the project passed on an 8-1 vote, with Council President Klarissa Pe帽a as the lone holdout.
The project was delayed two weeks ago to allow developers to speak with residents about their concerns. But even with additional time, Pe帽a said that the ordinance as written did not adequately address neighbors鈥� concerns about height, traffic and noise.
鈥淲hat protections do we have for such a historic neighborhood like Old Town, one of the gems of our city?鈥� Pe帽a said.
Though the developers spoke with community members about their concerns, Orlando Alvidrez, executive director of the Sawmill Land Trust, urged the council to get community demands in writing. Those demands included 鈥渟trong amendments鈥� to limit neighborhood impact, Alvidrez said.
Residents also expressed concern about character and whether a hotel branded beneath hospitality giant Hilton would respect the area鈥檚 history.
Though the logo will be national, developers said the faces behind the counter will be local.
鈥淭his is our home, this is our backyard,鈥� said Sun Capital Finance Manager Sahil Kholwadwala.
Kholwadwala said the hotel鈥檚 design was thoughtful to support preexisting businesses, not compete with them. The hotel, at 1010 18th NW, won鈥檛 include a bar or restaurant to encourage guests to dine out in the Sawmill area and nearby Old Town.
Under current plans, the hotel will replace a 25,000-square-foot office building, north of the New Mexico Museum of Natural History & Science. The building will include 135 rooms, resulting in an estimated 70,000 overnight stays each year, Kholwadwala said. Additionally, the hotel will employ between 42 and 47 people.
According to Kholwadwala, the hotel will fill a gap in the market by creating an affordable option for travelers. The planned hotel would be within walking distance from Hotel Chaco and Hotel Albuquerque, two luxury hotels whose cheapest rooms were approximately $400 a night on Tuesday.
鈥淲e鈥檙e trying to build an affordable hotel for all incomes in the hottest spot in Albuquerque,鈥� Kholwadwala said.
With tax abatements approved, the once delayed project can begin again in earnest, though developers didn鈥檛 offer a timeline. In uncertain financial times, Kholwadwala said securing municipal support was the project鈥檚 鈥渇inal hurdle.鈥�
Gillian Barkhurst is a general assignment reporter for the Journal. She can be reached at gbarkhurst@abqjournal.com.
