The Aggieville Midtown Project and the proposal of a new hotel received mixed reactions from Aggieville business owners at Tuesday’s city commission meeting.
TJ Vilkanskas, President of Back Nine Development, said the project comprises a mixed-use building with space for offices, retail, high-end apartments and public areas. Vilkanskas said the proposed Hampton by Hilton hotel and parking garage east of 12th Street. This would host 108 rooms and the garage would consist of approximately 500 stalls, offering 250 stalls for public use.
Vilkanskas and Back Nine Development sought multiple requests from the city commission, encompassing Tax Increment Financing (TIF) reimbursements, property tax TIF, sales tax TIF, transient guest tax (TGT), a sales tax exemption for construction materials, and a 12-month extension for the initial development agreement. Vilkanskas said these requests will aid in the construction of the building and Back Nine Development would only be reimbursed if the building is finished.
The proposed hotel would occupy the location of Catalyst Piercing and Green Tea Sushi. “I have six years left on my lease,” John Fitzgerald, owner of Catalyst Piercing, said. “I don’t see how this is going to play out.” Fitzgerald said he doesn’t believe he should be responsible for the cost of opening a new store in a new location. He said he believes that this project will improve Aggieville, but at the cost of his livelihood.
Sarah Cunnick of Sisters of Sound says she doesn’t believe that the hotel is necessary. “I don’t think there’s enough people coming into town to support another hotel,” Cunnick said. She said other than during a football game or when graduation ceremonies are held, the hotels would not be filled.
Manhattan’s Convention and Visitors Bureau reports an average monthly occupancy of 63.99% from January to August 2023, peaking at 71% in April and hitting a low of 56.6% in January. The average monthly occupancy of 2022 was 54.73%, peaking at 65.1% in June and hitting a low of 35.6% in January.
The Director of the Aggieville Business Association, Dennis Cook, said the board of directors has not yet voted on the proposal, although there was general support for the Back Nine Development. He expressed concerns around possible disruptions on 12th Street and their impact on Aggieville. Overall, he believes this would bring many good things to Aggieville.
The city commission will vote on this issue in November.
