Hotel Grim Redevelopment
The project includes restoration and redevelopment of the historic Hotel Grim built in 1925 originally as an eight-story hotel. The building contains 103,200 square feet and when built, was the second tallest structure in Texarkana. The iconic building is strategically located on State Line Avenue on the Texas and Arkansas border. The proposed project will preserve the historic elements of the building while completely updating the property.
The goal is to redevelop the hotel with commercial space on the first level and residential apartment units throughout the remaining floors. The financing plan is to use 108 funds from HUD along with federal and state historic credits, an EPA cleanup loan, conventional debt, and any other eligible sources.
Council of Development Finance Agencies Visit & Report June 2015
Recent developments over the past several years included a Phase 1 of an EPA Brownfield assessment completed in the Summer of 2014. The property was added to the National Historic Registry in May of 2015, making it eligible for historic tax credits, and Phase II of the Brownfields assessment was completed in June of the same year, making the project eligible for EPA Revolving Loan funds.
In June 2015, Texarkana was selected as one of four cities nationwide for a site visit from the Council of Development Finance Agencies (CDFA). A Project Response Team comprised of CDFA staff and technical assistance partners provided expert advice and recommended a redevelopment strategy detailed in the report titled Grim Hotel: Roadmap to Redevelopment. The visit was made possible through CDFA’s Brownfields Technical Assistance Program, funded by the U.S. Environmental Protection Agency.
In July 2016, the Grim Lofts, LLC was officially formed by developer Jim Sari and an EPA Brownfields Revolving Loan Fund Application was submitted for cleanup funds.
In November 2016, the Hotel Grim Lofts project team presented at the Council of Development Finance Agencies National Development Finance Summit in New Orleans, Louisiana November 2-4th. The session was titled “Hotel Revitalization in the Heartland” and featured the Texarkana project along with another historic hotel project in Green Bay, Wisconsin.
January 30th, 2017 - The City of Texarkana, Texas recently received approval from the U.S. Department of Housing and Urban Development for Section 108 loan guarantee assistance in the amount of $1,429,000 for the Hotel Grim Lofts Project.
March 13th, 2017 – After a 30 day public comment period, Texarkana, Texas City Council approves acceptance of HUD 108 Loan in the amount of $1,429,000 for the Hotel Grim Lofts Project and approves substantial amendment to the City’s Consolidated Plan for the project.
March 20th, 2017 – Hotel Grim Lofts project team conducts site visit with developers, architects and environmental consultants.
May 24th, 2017 – The development team for the Hotel Grim Lofts announced plans to purchase additional properties for redevelopment in downtown Texarkana. The new properties will add additional market rate apartment units and office space. The plan includes purchasing property at 301 Pine St that will include approximately 20 market rate residential apartments and purchasing property at 317 North State Line Avenue for conversion to renovated office space.
On July 12th, 2017 the Council of Development Finance Agencies released their second report offering strategies for financing that follow up on the original comprehensive financing recommendations.
July 10th, 2017- The Texarkana, Texas City Council approved resolution 2017-068 authorizing the City Manager to enter into loan agreements with Grimm Lofts, LLC. You can read the entire resolution and supporting documents.
In December 2017, the Hotel Grim Lofts project was selected to present at 2017 National Brownfields Training Conference held on December 4-7, 2017 in Pittsburgh, PA. The presentation was titled “CDFA Brownfields Toolbox: Revitalization of the Iconic Hotel Grim.”
December 20, 2017, the City receives approval from the Texas Attorney General’s Office for the HUD 108 Loan Guarantee Program Note for the Hotel Grim Lofts.
New Update, March 13th, 2018, members of the Hotel Grim development team visit Texarkana along with historic preservationists from Ogee Historic Preservation based in Austin, Texas work on historic tax credit documentation for the Hotel Grim Lofts.
New Update, July 9th, 2018 members of the Hotel Grim development team visit Texarkana to provide a project update and timeline to the City Council.
Based on a recently completed market study and additional environmental costs, the Hotel Grim will convert to primarily affordable family units with commercial space on the ground floor. The plan will include approximately 98 residential apartments with efficiency, one bedroom and two bedroom units available.
The overall project cost is estimated at 20 million with 12-13 million in construction costs. The overall project will add 118 residential units in downtown Texarkana and will include over 12,000 square feet in new retail and office space. The development team is currently completing the architectural design along with the environmental plans and anticipates closing the deal in Fall 2017.
Additional Information and Resources
Hotel Grim Lofts Development FAQ (PDF)
Hotel Grim – National Register of Historic Places Registration Form (PDF)