The Old Nueces County Courthouse in Corpus Christi might yet have a future in new development that could come to the downtown area once the old Harbor Bridge is torn down. Courtesy photo
Reconstruction of the old Nueces County Courthouse into a boutique hotel is one step closer to reality after a Corpus Christi City Council meeting May 15. The council voted to grant the developers, Coon Restoration of Canton, Ohio, $3 million in tax incentives and abatements, which is to be paid after the project is complete.
Coon Restoration purchased the building, 1100 N. Mesquite St., from Nueces County last year for $1,000. The company also agreed to pay $1.5 million in back taxes, which will be distributed to a variety of county taxing entities.
The $3 million in incentives, along with a possible $1 million from the Downtown Management District, will come from Type A funding and Tax Increment Reinvestment Zone tax, respectively.
Type A funds are generated from a one-eighth-of-a-cent sales tax. The money can be used to pay for affordable housing and economic development projects.
“It’s performance-based,” explained Iain Vasey to City Council. Vesay is president and CEO of Corpus Christi Regional Economic Development Corp. “The developer has to open the hotel, get the final certificate of occupancy, and clear all liens before we release any of the money.”
TIRZ grants are repaid with future tax revenues generated by increased growth. Corpus Christi has three of these zones, one each for Del Mar College, Nueces County, and the city. Zone 3, the city’s zone, takes in the downtown area.
The old Nueces County Courthouse, which was built in 1914, has been abandoned since 1977, when the new courthouse opened for business. Coon Restoration’s plans for renovation must comply with Texas Historical Commission standards to maintain historical integrity. The project could possibly receive state tax credits for accurate restoration.
The company plans to spend $52 million on the hotel, which is expected to include a full-service restaurant and bar, 159 rooms, meeting spaces, and ample parking. Already at 80,000 square feet, the building will acquire an additional 50,000 square feet by the time construction is done.
Coon Restoration plans to take on $21 million in debt while spending $6.4 million of its own money to finance the project, which should take 15 months to complete. Project manager Jim McCue told City Council he would be employing 189 full-time construction workers in 2018 and 2019. New permanent jobs should number about 45 full-time and 30 part-time.
