Press Release: Two New TIRZ #3 Projects makes $42 Million in New Investments in Downtown Corpus Christi
Corpus Christi, Texas – The Tax Increment Reinvestment Zone #3 (TIRZ #3) board meeting was held this morning, May 21st, 2024, to review project proposals brought forward by the Corpus Christi Downtown Management District (CCDMD), ultimately leading to the approval of two major projects, The Hotel Arya and 416 Flats.
The first project is The Hotel Arya, located 601 N Water Street. YC Texas Hotel LLC acquired the property in 2019 and has plans to completely transform the former Bayfront Hotel into a new 200-room hotel. Historically, this property was once the home of the original Nueces Hotel, eventually becoming the Bayfront Hotel.
The estimated cost of the project is over $24.3 million and is utilizing two TIRZ #3 incentive programs: the Streetscape & Safety Program for over $1.3 million and the Targeted Vacant Building Improvement Program for $775,000, totaling a projected reimbursement amount of over $2 million.
Renovation improvements include resurfacing of the roof, new paint, stucco repairs, new doors, enhancements to the entry ways, upgraded lighting, new security cameras, new signage, parking lot repaving, new landscaping, and upgrading the existing elevators. The estimated completion date of Hotel Arya is Spring 2025.
Another approved TIRZ #3 project is 416 Flats, formerly known as Sea Gulf Villa Apartments, at 416 N Chaparral Street. The developers, 416 N Chaparral St LLC, acquired this property in 2019 and proposes a massive renovation to the entire 10-story building, including 102 apartment units, townhomes, penthouses, and two street-level retail spaces. Rent for the units will range from $900 to $2,300.
First constructed in 1928, the historically designated building was originally home to commercial storefronts on the first floor, office spaces on floors two through eight, and even offered hospital services on the top floor. In 1979, the building was converted into the Sea Gulf Villa Apartments which provided housing to downtown tenants for over forty years.
Interior improvements of 416 Flats will include new elevators, new mini-split/PTAC/HVAC units, MEP repairs and upgrades, a reconfiguration of the common areas to include a seating area and new bathrooms, a reconfiguration of the retail spaces, sheetrock repairs, new vinyl flooring, fresh paint, new cabinets and countertops for the living units, and new doors. Exterior renovations include repairs to the brick facade, a new entrance, new windows, fresh paint, repaving and restriping of the parking lot, parking lot fencing, new lighting, security cameras, awnings, and landscaping.
The expected cost of the renovation is just shy of $15 million and is utilizing the Downtown Living Initiative Program with an approximate reimbursement amount of $3 million. The estimated completion date of 416 Flats is early Fall of 2027.
“Thanks to our partnership with Downtown Reinvestment Zone #3, we are excited to support the restoration of these vacant buildings to an active use and build more tourism and residential capacity in downtown,” says Alyssa B. Mason, Executive Director of the CCDMD.
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