Two distilleries also receive approval
COVINGTON, Ky. (April 8, 2015) — The Kentucky Tourism Development Finance Authority today approved incentives of more than $5 million for the $21.5-million Hotel Covington being developed in downtown Covington.
The project is eligible for up to $5.4 million in incentives over a 10-year period through a rebate of sales taxes generated by the tourism attraction. The authority considers applications under the Kentucky Tourism Development Act, which allows eligible tourism attractions a rebate of sales tax up to 25 percent of project capital costs over a 10-year period. Projects must meet certain criteria to be eligible, such as having a positive economic impact for the commonwealth and attracting at least 25 percent of guests from out of state.
The Salyers Group is partnering with the Aparium Hotel Group of Chicago, which has developed luxury boutique hotels in other cities, to renovate the 107-year-old Coppin Department Store Building into an 85,000-s.f. hotel. The hotel will have 114 luxury rooms and feature a signature restaurant, bar, and patio on its first floor.
The project will rehabilitate the seven-story structure—which was constructed in 1908—using the then-new construction techniques of reinforced concrete with a brick veneer. The hotel’s design will carefully blend the historical and architectural uniqueness of the structure with the modern-day amenities of a luxury hotel.
The building, which took three years to construct, originally housed the Coppin’s Department Store on the first three floors and offices on the upper floors. The Coppins store was closed in 1977. In 1984, the City of Covington purchased the building for $1.5 million and renovated it for use as its city hall, which opened in September 1990. City Hall was relocated to Pike Street in 2013.
Other approved projects are:
- The Jim Beam Urban Stillhouse, a distillery experience located on Fourth Street Live! In downtown Louisville. The development is expected to cost $5.2 million and will qualify for up to $1.18 million in tax rebates over a 10-year period.
- Peristyle LLC, a renovation of the former Old Taylor Distillery in Woodford County. The distillery, built in 1887, will be refurbished, and visitors will be able to tour a craft distilling operation. There will also be space for special events. The expenditure related to tourism development is $6.79 million, which results in a tax rebate of up to $1.71 million over 10 years.