- Athena Hospitality Group is proposing a $100 million mixed-use development on nearly 15 acres along Houston Road in Florence.
- Plans include two hotels, a sit-down restaurant and a new corporate headquarters.
- A Planning Commission subcommittee recommended approval of the project.
A Florence-based hospitality company is looking to expand its footprint within the city after proposing an upscale mixed-use development anchored by two hotels and a sit-down restaurant.
Athena Hospitality Group owns and operates several hotels throughout Kentucky, Tennessee, Louisiana and New Jersey. The firm’s portfolio includes brands from some of the world’s largest hospitality companies, including Marriott, Hilton, IHG, Choice Hotels and Wyndham.
Earlier this month, Athena Hospitality revealed plans to develop nearly 15 acres of land along Houston Road in Florence. The land is sandwiched between Citicorp and Hy-Tek Intralogistics to the north and Turfway Square, a shopping center with a Lowe’s and the home-furnishing retailer At Home, to the south.
Athena first presented its proposal to the Boone County Planning Commission at a public hearing on Aug. 5.
According to Boone County property records, the land is owned by JDV Ventures LLC, a real estate holding company associated with Athena’s Chief Operating Officer Davesh Patel.
Athena seeks to develop a 14,000-square-foot, one-story restaurant; a 15,368-square-foot, two-story office building; a 109,000-square-foot, three-story hotel; and a 152,000-square-foot, seven-story hotel.
Athena plans to use the office building as its corporate headquarters, with one hotel for extended stays and the other as a full-service hotel with a conference room. Plans show that the extended-stay hotel will be a Residence Inn Extended Stay while the other hotel will be either a Hilton or a Marriott. The restaurant brand has yet to be identified.
To move forward with the project, Athena has requested to change the land’s zoning designation from commercial to office. Moreover, the land would keep its Houston-Donaldson Study Corridor Overlay designation.
Following the public hearing, Athena returned to the Boone County Administration Building’s chambers for the planning commission’s Zone Change subcommittee meeting to review their proposal. Much of the meeting centered on addressing concerns related to how the proposed development would comply with the Houston-Donaldson development standards, as well as roadway layout and connectivity.
The subcommittee attached several conditions to Athena’s proposal, including requiring at least a 12-foot-wide landscaped area between right-of-way lines and on-site improvements and a 10-foot-wide Buffer Yard A around the perimeter of the proposed lots.
“At this point, we’re going to invest a lot of money here, and we’re going to make it look nice,” Patel said regarding the 10-foot buffer yard. “Now, obviously, you know, we want to make sure that there’s enough road for public share that makes traffic easier.”
In addition, the proposed Beam Boulevard extension must be designed as a sub-collector street, extend to the easternmost property line, and follow the natural ridgeline toward the adjoining property to allow for a potential future connection.
Lastly, all trees within 100 yards of Interstate-75 right-of-way must remain undisturbed by the potential development. Patel agreed to all conditions.
Ultimately, the subcommittee voted to recommend approval of Athena’s zone change request. The full planning commission will hear the proposal on Sept. 7, at 7 p.m. Because the land is within Florence city limits, the Florence City Council has final authority over the project.
The project was also presented to the Florence City Council on Aug. 18. Patel, who presented to the legislative body, said the project’s total capital investment is expected to be around $100 million.
“This has been a long time coming,” City Administrator Josh Hunt said of the behind-the-scenes work that’s went into the proposal.
Jim Parsons, a local attorney at Cincinnati-based law firm Keating Muething & Klekamp, said Florence will likely offer an incentive package to help Athena offset some of the project’s infrastructure costs.
Parsons said the incentive package would involve issuing industrial revenue bonds, which are tax-exempt bonds issued by a municipality on behalf of a private developer to help offset some construction costs.
Under the proposed structure, Florence and Boone County would each receive Payment in lieu of taxes, or PILOT, payments equal to 30% of their normal property tax revenues, while the Boone County School District would receive 55%. He noted that the bonds would not be debt owned by Florence; rather, the city would temporarily hold title to the property and lease it back to the developer, creating a local property tax exemption.
“The PILOT structure we’re talking about industrial revenue bond financing just for the council and for the public is basically public-type debt that can be issued for a private project,” Parsons said.
The city council took no legislative action during the meeting. The proposal and IRB agreement will be considered at a later date.
