The $13.1 million plan includes tearing down the Raasch building, directly north of the Gallup building at 11th and P streets.
The four-story building would then be rebuilt with five or six stories — with floorplates matching those in the Gallup building.
Will Scott, one of the owners of the two buildings, said in addition to extra space for Gallup, plans call for a mixture of retail, and other office space and possibly residential space.
“We’re thrilled to help with a project we think creates jobs,” said Urban Development Director David Landis.
The plan calls for recreating Gallup’s facade on the new building, as well as bringing back some of the original design elements from the building, which was built in 1912, Landis said.
According to documents filed last week with the Lincoln-Lancaster County Planning Department, developers would add three floors to the top of the four-story building at 216 N. 11th. The first floor would house a restaurant/lounge, and the upper six would be home to a high-end boutique hotel with 34 to 38 rooms.
The capital city is going "high class" with plans in place for a new hotel, unlike anything else in Lincoln. The developers say the "Kindler Hotel" will be comparable to a Ritz Carlton or Four Seasons Hotel. The project is planned for 11th and P Streets, which is near Embassy Suites and Misty's.
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"You have some good hotel product, you don't have any great hotel product," Nicolas Castaneda with Cas-Neb-Neda LLC, the developer of "The Kindler," said. "We want to bring that to you."
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The $10 million project also includes the restoration of the Lincoln Commercial Club Building, which will be attached to the hotel. The building dates back to 1912.
The Lincoln-Lancaster County Planning Commission and Lincoln City Council still need to sign off on the project. If approved, construction is expected to start in May. The target completion date is summer 2018.
The updated project now includes an additional 11 hotel rooms, a fitness center and business center for the Kindler on the second floor of the Commercial Club, as well as the addition of two floors to that building.