AKRON, Ohio - The Development Fund of the Western Reserve is issuing its first-ever loan to help underwrite the redevelopment of Akron's historic United Building at Main and Market streets into a 71-room boutique hotel.

The $1.28 million loan was made from the fund's Akron Community Revitalization Fund, said Chris Burnham, executive director of the Development Finance Authority of Summit County, which helps finance economic development across Summit County and manages the Development Fund of the Western Reserve.

The BLU-tique Hotel, co-developed by Tony Troppe, an Akron developer, and the Riley Hospitality Group of Medina, will be jazz-themed and a focal point in the city's first music-themed corridor. It's designed to dovetail with Troppe's BLU Jazz+ music venue across the street and BLU Plate, his Southern comfort-food restaurant on the ground floor of the United Building.

"It's basically rolling out the blue carpet at the front door to city," Troppe said. "When you come to Main and Market you enter the blue zone."

The Akron Community Revitalization Fund loan is key to the United Building hotel project, which is estimated to cost about $10 million.

Burnham said the Development Finance Authority created the Akron Community Revitalization Fund in partnership with Cleveland-based Village Capital Corporation, a community development organization that has financed projects in Cleveland's distressed areas.

By mid 2017, the new Akron fund had raised $6.75 million, through donations from philanthropic groups, individual and corporate grants, New Markets Tax Credit equity and private loans and investments.

The revitalization fund now offers $500,000 to $2 million in loans with flexible terms and rates. Other projects are in the pipeline, and the idea is to keep the fund alive, and financing Akron development projects, in perpetuity.

The United Building project will also receive historic tax credit equity, and funding through Cortland Bank and Village Capital Corp.

Village Capital is making a $720,000 loan on the United Building project, its first foray into funding Akron projects.

"It's pretty exciting," Burnham said. "It's good people want to invest in Akron."

And being able to get funding can attract funding, so the United Building project will be good for Akron in the long-run.

"It is a wonderful day when we have good news like that," Troppe said. "It starts at the epicenter of the city and fans out, and makes everybody feel good. It's an affirmation of downtown Akron."

The BLU-tique Hotel will be designed with a mid-century modern theme, modeled after 21c Museum Hotels, a chain in Cincinnati and Louisville. Troppe sees BLU-tique also rolling out in other areas.

"This model is replicable," he said. "There are many communities looking for ways to rebuild their downtowns that are focused on community building projects."

The jazz hotel will have an inclusive feel for all ages and races, much like the jazz genre, Troppe said. With 71 rooms on 10 floors, the hotel also will display artwork on loan from the nearby Akron Art Museum.

Pride One Construction of Medina will serve as construction manager for the project, which is expected to create about 83 construction jobs and 20 permanent and 9 part-time jobs in downtown Akron.

Want more Akron news? Sign up for cleveland.com's Rubber City Daily, an email newsletter delivered at 5:30 a.m. Monday through Friday.