Print edition: 
Preliminary interior demolition has begun at downtown's first boutique hotel, and developers say the project is on target for a December 2012 opening.
Demolition should ramp up in 30 to 45 days at the Wichita Ambassador hotel site, located at the corner of Douglas and Broadway in the old Union National Bank building.
Paul Coury, the Tulsa boutique hotel developer who's heading up the project, said he expects to close on the building in that same period.
"We've got to start in the next 30 to 45 days to get the project open by late next year," Coury said.
"We've begun debris removal, but the demolition will begin on the ground floor soon on a more substantial scale than you see now."
The financing for the $30 million, 117-room project is being finalized, Coury said. A $12 million bank loan for the project should close in 30 to 45 days, and work is being finalized on $7.3 million in state and federal historic tax credits for the project.
The developers also have honed their plans for a 144-seat restaurant that will front the intersection of Douglas and Broadway, choosing a Tuscan-style Italian steakhouse.
"Lots of grilled foods and pastas," Coury said. "We're shooting for a very nice bar and restaurant atmosphere, something pedestrians can see from the street on the north and west elevations of the building. We think it's a pretty exciting product for downtown."
"For a boutique hotel, the current thought is the Tuscany steakhouse... is something a little more in keeping with the theme," said Wichita developer Dave Burk, a partner in the project.
Coury said the restaurant exemplifies how he defines a boutique hotel: 50 to 150 rooms, independently operated, styled to the original architecture of the building and offering specialized services, like town car service.
The Wichita Ambassador plans include a $7.5 million, 282-stall parking garage and a small public park, financed by the city.
The parking garage includes 8,400 square feet of retail space on the first floor that will be leased to the developers on a sliding fee: $1 a year for the first five years, $21,000 a year for the following decade and $63,000 per year for the final five years.
After two years, the developer will have the option of managing the property for the city for a 6 percent management fee, or purchasing it for $1.12 million.
City officials say the parking garage and park are direct public-benefit subsidies consistent with Project Downtown, the comprehensive redevelopment plan for downtown Wichita.
The Wichita City Council approved financing Tuesday for the project, including bonding and a financial incentives package, which includes tax increment financing, a community improvement district, historic tax credits, hotel guest tax monies, special assessments for facade work and $4.6 million in city capital improvement funds.
The Wichita chapter of Americans for Prosperity said Wednesday it is launching a petition drive to overturn the $2 million the project will receive in hotel guest tax monies.
According to city documents, developers are contributing $7,715,000 in equity to the project. But $7.3 million of that will come from federal and state historic tax credits, city officials said.
