Sheraton's asbestos clean-up $500,000
Developers who want to renovate the former Sheraton Hotel building, in Gary, IN expect to spend $500,000 on asbestos removal, and they might accept a loan from the city to do it.
Asbestos removal is included in a 13-page preliminary budget prepared for the city by the New Gary Development Group. It outlines projected costs for a two-phase rebuilding of Gary’s downtown.
The total cost, according to the document, will be about $80 million, but New Gary finance manager Chet Kondas said plans are still evolving.
"I expect it's going to change," Kondas said.
The asbestos cost is based on a study conducted by New Gary more than a month ago, Kondas said.
However, the group won't be able to gather quotes for the project until plans are drawn for the clean-up.
Doreen Carey, director of Gary's Department of Environmental Affairs, said the city has federal grant money it might be able to loan to New Gary for the clean-up with an offer of "low or no interest."
The loan would have to be approved by the Environmental Protection Agency.
"We are assisting them with the eligibility application to EPA," Carey said.
About 15 years ago, developers who wanted to renovate the Sheraton estimated the asbestos clean-up would cost the same amount.
The building hasn't been used since it closed in 1985. Asbestos was discovered inside in 1990.
Mayor Rudy Clay promised in February to convert the building into senior citizen housing. It is the centerpiece of his larger downtown revival.
New Gary's first phase, which includes the Sheraton project, also includes a civic center plaza, retail and parking structures for a total cost of about $43 million.
The second phase includes a new hotel and restaurant downtown, at a total cost of about $37 million.
Later this week, Gary's redevelopment commission will hold a public hearing to consider a $7.5 million revenue bond for the Sheraton project.
The revenue bond, which would be repaid by mixing private New Gary money with tax increment finance revenue generated by the Sheraton project, will have to be approved by the City Council.
|
Linear Mode
