By Lindsey Frazier, Features Editor
Gadsden tourists will soon have a high-end option with the addition of a 4.5-star hotel, following approval from the city council on Tuesday.
The hotel, planned as either a boutique Marriott or Hilton brand, would replace the former police department building. Plans call for more than 100 rooms, a rooftop bar and an in-house restaurant.
City officials said construction is expected to follow a phased timeline.
The company plans to break ground within the next six months, with an estimated 18-month construction period, according to Moore. Based on that timeline, completion could be around mid-2028.
Although the former police department will be demolished, Moore said renovations are planned for city hall to be converted into condominiums, with the hopes of connecting the developer and architects of the hotel to mimic the outer covering.
City officials said the project is part of a broader effort to strengthen downtown development and create a more walkable district, connecting key destinations including the Gadsden Athletic Center and a future pedestrian bridge leading to The Venue at Coosa Landing.
John Moore, director of commercial development and community affairs, said acquiring an upscale hotel has been a priority for about 18 months as part of the city’s downtown redevelopment strategy.
Over that period, Moore said he negotiated with four hotel companies. Three proposed tax abatements totaling about $12 million over 15 years, which city officials said were not feasible.
Galactic Hospitality Group proposed a $4.5 million tax abatement spread over three years, including $1.5 million once hotel plans are finalized, $1.5 million at groundbreaking and the final $1.5 million when the hotel opens.
“A good question would be where’s the money coming from?” Mayor Craig Ford said.
Economic Development Fund 160, a special revenue fund, is used for incentives, land acquisition and other projects aimed at promoting commercial and industrial development, according to city officials. The fund is supported through city revenue sources and council-approved transfers.
Mayor Craig Ford said the incentive would be paid through the Economic Development Fund rather than the city’s General Fund.
“The incentive is $1.5 million per year,” Ford said. “However, we’re not taking $1.5 million away from the taxpayer’s general fund budget. It is designed for economic incentives, and this is what I think the specific purpose of this would be useful.”
In addition to the tax incentive, the city has agreed to convey the land to Galactic Hospitality Group upon completion of the project, meaning the city would transfer ownership of the property to the company once the project is finished.
Moore said the hotel anchors the city’s broader downtown tourism plan.
“The pieces of our whole entire economic impact tourism plan, the mayor’s plan, have now come together with this hotel being the anchor of all those things,” Moore said. “Without a hotel in the downtown area, that’s a high-end like that, everything else doesn’t work.”
