El Paso City Council approves revised economic development plan for the renovation of the De Soto Hotel

UPDATE: In a 4 to 1 vote Tuesday City Council approved a revised economic development agreement with a developer that plans to renovate the hotel.

Under the terms of the original agreement, the property owner would have made a minimum $1.2 million dollar investment.

Now the cost has doubled after the fire to $2.4 million, due to the damage and partly due to increased costs because of rising inflation, according to Elizabeth Triggs, the Economic Development director for the city.

In total, about $296,000 in local incentives and grants are being committed to support the restoration and rehabilitation of the building.

The rehab looks to generate around $1.9 million in net new revenue to all taxing entities through incremental property and hotel occupancy tax revenue over the 15-year incentive period.

The city says the project will increase the tax value of the property and greatly enhance the aesthetic value of the area.

The project is set to be complete by February 2024.

UPDATE: (11:40 a.m.) -- ABC-7 is in Council Chambers waiting to hear about Item 4, Council members went to recess, will be back in session at 12:00 p.m.

This story is developing, ABC-7 will keep you updated on-air and online with the latest updates.

EL PASO, Texas (KVIA) -- The 117-year-old, four-story building will be renovated into a boutique hotel. The proposed project will renovate the hotel in El Paso’s central business district.

El Paso City council today will discuss and consider a revised economic development agreement with a developer that plans to renovate the hotel. If approved a minimum investment of $2.4 million from the developers, known as 309 Mills LLC would be required. An initial agreement was approved to renovate the hotel just two months before being damaged by the fire last year. Originally costing around $1.2 million. 

The city, county, and downtown management district will work with the property owner to rehabilitate the Hotel. The project will increase the tax value of the property and greatly enhance the aesthetic value of the area.

The new De Soto Hotel will have a ground-floor restaurant, 34 hotel rooms, repainted interior and exterior, new doors and signage, HVAC, plumbing, electric, and a re-flooring of the whole building.