Norwich — A Texas-based hotel developer who revived one defunct hotel project in Preston now is working with Norwich officials to try to revive the abandoned former Hampton Inn hotel project at 154 Salem Turnpike-Route 82 off Interstate 395 at Exit 11.

Developer Patrick Levantino and contractors working on the project recently toured the defunct hotel building, abandoned just before completion several years ago, with city officials from building, health, economic development, public utilities and fire departments to determine the work that would need to be done to finish the project.

The group also is working with city Assessor Donna Ralston on the possibility of using a state statute that would apply seven years of phased-in property taxes on any improvements to the property — similar to an enterprise zone tax break.

The City Council would have to approve the tax abatement plan.

Robert Mills, president of the Norwich Community Development Corp., said the new development group posted the winning bid in an online auction of the hotel property brokered by Hospitality Real Estate Counselors.

The auction closed July 13, but Mills said before the group completes the purchase from current owner CT Norwich LLC, a subsidiary of Winston Hospitality Inc., the developers are researching the building needs and city incentives available.

Winston Hospitality Managing Director Jay Davies said the company would have no comment on the proposed sale at this time. He referred questions to Mills and NCDC.

Levantino could not be reached for comment Wednesday.

His firm, Julia Tate Properties LLC, took over a previously defunct hotel development project at the corner of Route 2 and Watson Road in Preston and built the $13 million Hilton Garden Inn. The hotel boosted that town's grand list and has become a key commercial development in town.

Winston Hospitality took ownership of the defunct Norwich hotel project in 2013 and had hoped to finish the project.

The firm requested an extensive tax abatement from the city through a tax increment financing proposal that would have diverted $2.8 million in property tax revenue over 20 years to finance the project.

The Norwich City Council rejected the proposal in 2014.

Ralston said the new developer's tax abatement wouldn't be nearly as high as the former proposal.

Under state statute Sec. 12-65b, a developer proposing a project valued at $3 million or more can request a seven-year property tax phase-in — which must be approved by the City Council — similar to enterprise zone abatements.

The developer would pay full property taxes on the existing assessment of $880,600 for the first two years. The value of the improvements would be phased over the next five years, starting at 50 percent and ending with full taxes on the hotel's assessed value in the eighth year.

“It's good for the city, because we wouldn't get anything otherwise,” Ralston said.

Mayor Deberey Hinchey said city leaders are researching the proposed hotel project.

Several city officials discussed the project Wednesday, but Hinchey said the abatement request is not yet ready to be presented to the City Council.

Another issue is that the planning permits expired for the project in 2011 and either would need to be extended or new site plans approved.

City Planner Deanna Rhodes said she is working on that issue and will bring it to the Commission on the City Plan when a solution is proposed.

Assistant Building Official Greg Arpin attended the tour of the abandoned hotel with several other city officials to assess damaged caused by years of vandalism, metal thefts, rain water and burst sprinklers.

Arpin said sprinkler pipes burst, because they were not drained of water after they were tested. Thieves ripped out copper and electrical systems and some copper plumbing piping. Rain water from an unfinished and leaking roof and uncaulked windows damaged drywall in places.

The developers are working with Norwich Public Utilities on the electrical and water issues, Arpin said.

But overall, Arpin said the building is not as deteriorated as city officials expected.

He is confident Levantino's team has the expertise to finish the project.

“They seem like a very good group of people,” Arpin said. “They have hotel experience, and are working on their costs. I can issue a (building) permit as soon as the zoning (issue) is cleared up.”

c.bessette@theday.com