Developers from the Hamister Group and local officials gather to cut the ribbon to mark the official opening of the DoubleTree by Hilton hotel in downtown Jamestown.

JAMESTOWN – The newly remodeled DoubleTree by Hilton hotel is now open for business in downtown Jamestown.

A special ribbon cutting for the hotel took place Tuesday morning with the developers joining hotel staff and local and state officials to mark the completion of a nearly $20 million development effort that took more than five years to complete.

Hamister Group chairman and CEO Mark Hamister shares his thoughts about the $19 million DoubleTree Hotel project in downtown Jamestown on March 5, 2019.

The Hamister Group out of Buffalo developed the project, which involved a total of $19 million in renovations to a building that was first built in 1979 and which had operated for more then 20 years as a Holiday Inn.

In the mid 00s the hotel became a Ramada and remained in operation until the end of 2013, when the property was purchased by the Hamisters. Since then it has undergone significant renovation to make way for its reopening as a DoubleTree by Hilton hotel.

The renovation work included the gutting of most of the internal space as well as replacing much of the exterior, including all windows.

Initially the group had said it would open the hotel under the new franchise in the summer of 2015. However, unanticipated delays brought forward from the State DEC meant that Hamisters would have additional unexpected renovation costs that pushed the schedule back. In addition, the group was also focused on opening another hotel in Niagara Falls – which reportedly contributed to the delay.

The cost of the project was covered by both public and private investments. Highlighting the public funding for the project was $2.4 million in state money that came out of the $10 million Downtown Revitalization Initiative grant the city received in 2016.

The DoubleTree by Hilton Hotel, located at 150 W. Fourth St. in Jamestown, NY

The Chautauqua County Industrial Development Agency also provided the project with a sales tax exemption valued at $432,000, a 15-year payment in lieu of tax agreement equating to $1.9 million and a $900,000 Al Tech loan. The project also received an additional $950,000 in loans from the Western Region Corporation Downtown Revitalization Loan Fund, the Greater Jamestown Zone Capitol Corporation, and the Jamestown Local Development Corporation.

The 147-room hotel redevelopment project includes a 4,100-square-foot ball conference room for meetings and receptions of up to 375 guests and a pub and restaurant known as Pearl City Hops.

Currently the operation employs 32 staff members and plans to exceed 50 during the busier summer season.

An an artist rendering of the DoubleTree by Hilton hotel in Jamestown.

JAMESTOWN – The DoubleTree by Hilton hotel in Jamestown will be opening sometime this fall.

That’s according to the Jamestown Post-Journal, which says the newly renovated hotel will be opening toward the end of the third quarter or early in the fourth quarter this year.

The hotel – which previously was Holiday Inn and later the Ramada before being shuddered – is undergoing a $9.7 million reconstruction, with some funding coming from the $10 million grant the city received through the state Downtown Revitalization Initiative program.

The Hamister Group received $2.4 million from the grant, which was the highest award amount for any of the 10 projects, through the DRI program.  In addition the project was also the recipient of low interest loans from both the Chautauqua County Industrial Development Agency and the Jamestown Local Development Corporation.  In addition, the project has also received a Tourism Destination PILOT, Sales Tax Exemption on construction materials, and a Mortgage Recording Tax Abatement from the IDA.

The project will contain approximately 144 guest rooms – updating the swimming pool – renovating the full-service bar and grill – and updating the banquet facilities. There will be a complete and full renovation of the interior space with some updates to the exterior façade and streetscape.

It was initially projected to be completed in this past winter but various delays have pushed the timeline back to this coming fall.

The DoubleTree by Hilton hotel, located at 150 W. Fourth St. in Jamestown, has undergone more than $14 million in renovations over the past two years. It’s expected to open in July 2018. The former Ramada hotel was purchased by H. H. Jamestown, LLC (subsidiary of the Buffalo-based Hamister Group) in 2016 and has received development assistance from the city, county and state – including a $350,000 loan from the Jamestown Local Development Corporation.

JAMESTOWN – The Jamestown City Council has approved the restructuring of a loan for the developers of the DoubleTree by Hilton.

On Monday night the city council unanimously approved the new terms of the  10-year, $350,000 Jamestown Local Development Corporation (JLDC) loan for H. H. Jamestown, LLC – a single entity subsidiary of the Hamister Group, which is renovating the former Ramada Hotel at 150th W. Fourth Street in downtown Jamestown.

City Development Director Vince DeJoy, who also serves as the director of the JLDC, explained what the new terms involve.

“Basically what has been changed is some of the repayment terms on how they would pay interest and principal back, giving them the ability to be incentivized for staying in Jamestown the entire ten years. There would be a break on the principal that is owed,” DeJoy said.

Mayor Sam Teresi – who is also the chairman of the JLDC board of directors – said the restructuring was necessary after a recent Supreme Court decision ruled that the actual assessed value of the property was too high…

“Hamister Corporation – H. H. Jamestown, LLC had challenged the assessment on the property and through a court action had the assessment reduced from $3.3 million to about $1.8 million. That is going to cost the city of Jamestown about $38,000 in tax revenue,” Teresi said following the meeting. “In exchange for modifying the terms of the loan as requested by the Hamisters, they are now going to make a voluntary $38,000 payment to the city of Jamestown to hold the city harmless on the reduction of the assessment on the property.”

DeJoy said as a result of the agreement, it’s a win-win situation for both the city and the hotel developers.

“Both the city and Hamister Group came out winners in this. We’re going to get a very good project and they’re going to get better repayment terms that will help them with their cash flow,” DeJoy said.

Because the loan was more than $100,000 the city council was required to vote on it back in 2016 when it was initially approved. The council was also required to sign off on any changes to the terms and conditions that were made.

The total cost of the hotel renovation project was initially expected to be $14 million, but DeJoy said that some unforeseen challenges have driven the cost up for the developer.

The hotel building has been vacant since 2013 when the Ramada closed. It was purchased three years later by the Hamister Group in order to renovate and convert to a DoubleTree by Hilton.

As for the status of the project, the developers are hoping the hotel will be completed and open by July 1 of this year.

CONFUSION OVER RESOLUTION LEADS TO QUESTIONS, LENGTHY DISCUSSION PRIOR TO VOTE

Jamestown mayor Sam Teresi (left, back to the camera) explains to Jamestown City Councilman Andrew Liuzzo (seated right) and his fellow council members details of the proposed amendments to the JLDC loan, which was later approved unanimously by the full council.

While the city council unanimously approved the loan, it wasn’t without some concerns and questions from the council’s newest meber. Councilman Andrew Liuzzo (R-At Large) questioned why the loan amendment was added as a “dummy resolution” under new business. Also, once it was introduced, he voiced concern that the council was expected to vote on it without any discussion or explanation.

Councilman Tony Dolce (R-Ward 2) introduced the resolution and said he had planned to briefly explain what it entailed but didn’t have the opportunity to before Liuzzo raised his concerns and questions. Dolce also said that all the information on the loan amendment was sent to the council members – including Liuzzo – last Friday via email, so they should have had enough information to know what the changes entailed prior to voting on it.

Mayor Teresi also pointed out to Liuzzo that the loan changes were discussed during the Feb. 5 city council work session, and Liuzzo himself had commended DeJoy and his staff for the work they did on renegotiating the terms of the loan.

Following about  ten minutes of discussion and explanation, the resolution was voted on and passed unanimously.

The Hamister Group is headquartered in Williamsville, NY and employs nearly 700 people. For additional information, please visit www.hamistergroup.com.

In September 2010, Oza voluntarily filed for Chapter 11 bankruptcy but because he didn’t reorganize, bankruptcy court ruled in favor of State Bank of Texas, which decided to foreclose on the property. According to today’s report, the State Bank of Texas bid $2.2 million for the property during the auction. There were no other bidders. Prior to the auction, State Bank of Texas had arranged for a new management team to run the hotel after the auction.