Hotel project gets financial boost

SANDUSKY — Both sides booked a deal to ensure a long-awaited hotel project goes forward. During a recent public meeting, Sandusky city commissioners agreed to provide those representing North Coast Inns with $3.7 million in local funds so they can proceed with constructing a high-rise lodge within downtown's Jackson Street parking lot. More than three years ago, in May 2023, the Longer family — which operates several hotels along Milan Road (U.S. 250) across Erie County — publicly announced a redevelopment plan in the lot behind the Sandusky State Theatre. Even two years prior to this, in 2021, city officials began envisioning a hotel at this site through plans. Since then, a number of delays have pushed back the project's timeline, largely revolving around funding what's still considered a $50 million project. North Coast also initially teamed up with Fairmount Properties on this project, but the latter is not involved anymore. So what does a refreshed project timeline look like? As of mid-July, "They have 18 months to secure financing and start construction," said city community development director Colleen Gilson, pointing to the newly executed development deal. Building the actual hotel could take an additional year or more before opening. While setbacks for projects like this can be frustrating, it's now even more exciting for a multimillion-dollar investment coming to Sandusky, officials said. Commissioners also expressed confidence in the Longer family, tied to the local tourism and nationwide hotelier industry for decades now. "Thank you to the Longer family," city ex officio mayor Kate Vargo said. "I know that you have worked tirelessly to come to a development agreement that we could all work with." Making sense of the dollars and cents Receiving the city money in full — $1 million coming from a city economic development grant and $2.7 million generated by taxes paid by Cedar Point guests — requires North Coast to reach several benchmarks. "They have had their due diligence period, and now they are committed to going forward with the project," city manager John Orzech said. "We are supporting them so long as they meet the parameters in place and the timelines." Officials needed to iron out a development deal with the Longer family to show creditors some good faith for this project. This should help the family secure loans to cover the project's remaining balance, Orzech said. When construction breaks ground, at an unknown future date, the arrangement also calls for a 30-year tax deal, breaking down like this: • 12.5% of all property taxes on new construction go directly to Sandusky Schools • The remaining 87.5% goes into a fund for the developer to invest these funds back into the project. Today the parking lot doesn't generate any tax dollars. "The spending and opportunity for local businesses to capture (what a hotel will bring) will be very beneficial to Sandusky's economy," said Orzech, noting the hotel should provide dozens of construction jobs initially, then year-round employment and generate taxes, through overnight stays, which will fund local services provided by Sandusky's government. What could it be? North Coast is now proposing a dual-branded, side-by-side hotel: A Hampton Inn as well as a Home2 Suites by Hilton. Plans show the site offering: • About 150 rooms • About 230 parking spaces in a connected garage to the property; This will more than offset about 100 parking spaces, in total, at the Jackson Street parking lot. Both hotel guests and the general public can store their cars here for free. Non-hotel guests, however, will be limited to four hours. • Street-level event space/conference center ranging in size between 5,000 square feet and 10,000 square feet; This could be where business meetings, weddings and other celebrations take place. "When you have these types of projects in a downtown lot, it does require a lot of time," Orzech said. "It's more difficult than building out in a cornfield out on (U.S.) 250." The city stands behind this project for a number of reasons. Beyond job creation, the city's master plan calls for a major hotel in its central business district, which it doesn't have today. Other than a couple of boutiques, like Hotel Kilbourne and The 419, along with a few vacation rentals here and there, there aren't any large-scale options for visitors in downtown, officials stressed. "We are losing people to Perkins Township and other areas where they are staying overnight," Gilson said. "We want them to not only enjoy our downtown but stay here into the night as well." Added Orzech: "There are a lot of options for people to come to downtown: the bike path, the piers, the water. There are a lot of great things here. When I take my grandkids somewhere (outside of Sandusky,) we look for those amenities and a place to stay. That will help make downtown even more of a draw." Bio blast Founded in 1986 by Leonard "Lenny" Longer, North Coast describes itself as a family-owned management and development company headquartered in Sandusky. Lenny's three children and their significant others do work for the operations team. North Coast, a franchisee, consists of several hotels along Milan Road (U.S. 250) in Erie County: Country Inn & Suites by Radisson Sandusky South in Milan, Hampton Inn & Suites in Sandusky and Milan, Tru by Hilton Sandusky and La Quinta Inn by Wyndham in Sandusky. These hotels have received numerous accolades based mostly on positive customer feedback. "When we started 39 years ago, our motto was clean and friendly, and that's what we've been," Longer, a born-and-raised Sanduskian, told commissioners before they approved this development deal. "We promise you that we are going to operate (this hotel) in a manner that you will be proud of." Longer pointed to the Hilton Honors rewards program, noting more than 250 million people belong there, often booking stays at these properties where they vacation. Many nationwide businesses, such as restaurants, also find homes in areas near Hiltons and Hampton Inns, he said. "This will be something you will be proud of and that people will want to come back to," Longer said. "We appreciate this opportunity."