Gov. Mark Parkinson on Monday signed a bill revamping the state's historic-tax-credit program.
The new law makes possible the $28 million renovation of the Broadview Hotel in downtown Wichita by the Drury Hotels chain, among other projects, by removing a cap on the total amount of funding.
In 2009, the Legislature trimmed all tax credit programs by 10 percent as a cost-saving move. But the move also capped the entire fund at $3.75 million, making it too small for the Broadview project.
The bill restores the program as it was before the cuts.
It also clarifies that the portion of angel investor tax credits that had been subject to the 10 percent cut can be carried forward.
The recognition by state leaders of the importance of the project to Wichita made the passage of the law likely. The hotel closed for construction on Monday.
"It's was very critical," Dennis Vollink, president of Drury Southwest, said of the measure. "This means we can go forward with the project."
The Broadview, 400 W. Douglas, will reopen in 10 to 12 months as the Drury Plaza Broadview Hotel.
The company is pursing a "very aggressive" construction schedule to make sure it finishes the exterior work before winter, he said.
The city of Wichita will begin work along the Arkansas River below the hotel after the River Festival.
The tax credit will contribute between $4 million and $5 million toward the cost of the project, Vollink said. The credits will cover only interior and exterior work on the building's structure.