Plans for Speedway hotel could possibly move forward this spring

The Speedway Town Council will consider an ordinance next week that authorizes the town to issue a $2.5 million short-term loan to help jumpstart construction on  the Wilshaw Hotel.  

Construction has been stalled on the hotel at the southeast corner of 16th and Main streets for the past three years.

Speedway Town Manager Grant Kleinhenz said Atlanta-based developer, Hotel Equities, is working to secure final financing for the project.

“Once they secure their financing and close on that we will then close on this loan with the project, construction would be expected to start in late spring, and then take 18 to 24 months to come to completion,” Kleinhenz said.

Kleinhenz said he is cautiously optimistic.

“The reality of these types of projects is they're very complex.  And our matter is even more complicated because it's considered what is called a broken project. Which means the first developers started with construction and got about $5 million put into the ground. And I believe the death of a partner ultimately led to that financing being taken aback. And it has sat since that time,” Kleinhenz said.

The town’s proposed short-term loan originates through Tax Increment Finance revenue.

Hotel Equities acquired the project from developer Loftus Robinson in 2021 after extensive delays due to a lack of financing.

The ordinance will be considered for second reading at the town council’s March 13 meeting.

.Contact WFYI Morning Edition newscaster and reporter Taylor Bennett at tbennett@wfyi.org. Follow on Twitter: @TaylorB2213.