FLINT-- Plans to transform the former Genesee Bank building at 352 S. Saginaw St. into a new Hilton Buckham Square Hotel will move forward after being approved an equity investment of up to $7.9 million from the state.

The $37.9 million project will renovate the 11-story abandoned bank into a hotel and demolish two blighted buildings at 126 and 116 Kearsley Street to turn into Buckham Square, a green space for food trucks to operate.

The state approved the developer's request for an MCRP Other Economic Assistance Performance-Based Equity Investment. The award is structured as an equity investment to allow financial flexibility.

Additionally, the state approved the Flint Brownfield Redevelopment Authority's request to include a local and school tax capture in the amount of $2.2 million at an Aug. 28 Michigan Strategic Fund Board Meeting.

The Genesee Bank Building has been abandoned for 20 years. The walls outside of the bank have been vandalized over the decades and the interior requires significant demolition and remediation.

Due to the size and the extent of the renovation, the project requires outsourced investments.

How is the project being funded?

Developers are trying to secure $8 million in financing from Huntington Bank

Developers are trying to secure $4.1 million from the Local Initiatives Support Corporation. LISC a US non-profit community development financial institution that supports community development.

Developers are trying to secure $1.7 million in private financing to bridge the Tax Increment Financing reimbursements

$9.2 million in private equity

Developers are anticipating a historic tax credit equity of $5.1 million

A state investment of up to $7.9 million

A local and school tax capture in the amount of $2.2 million

The proposed downtown 101-room Hilton Hotel has already been approved for a city tax break under the Obsolete Property Rehabilitation Act, which freezes taxes at existing levels for a set period, while the property's actual value may increase due to improvements.

The approval has frozen the project's tax bill at $25,000 for the next 14 years. After that, it is estimated to generate $530,000 in tax revenue for the city.

Developers previously stated the project will bring about 70 jobs to the city, whether those hires are directly from the city or not is undetermined.

The new 11-story hotel will feature a banquet center and restaurant on the second floor and a rooftop deck that will overlook Buckham Square.