Norwich – Contractors from the local firm Engineered Construction are expected to be at 154 Salem Turnpike Tuesday morning to begin work on finishing the abandoned 113-room Hampton Inn project after it met two key milestones Monday.

Texas developer Patrick Levantino completed the purchase of the formerly defunct project Monday under the name 395 Properties LLC for $3.15 million from previous owner CT Norwich LLC, a subsidiary of Winston Hospitality Inc. of Raleigh, N.C.

And Monday night, the City Council voted unanimously to approve a seven-year property tax phase-in for the new hotel as allowed by state law for projects valued at more than $3 million.

The hotel is at a key gateway to the city on Route 82 off Interstate 395, Exit 11.

Assessor Donna Ralston provided the City Council with a chart detailing the tax phase-in plan. The new owner would pay full taxes on the assessment of $880,600. For the first two years starting with the October 2017 grand list of taxable properties, 395 Properties LLC would still pay full taxes on the $880,600 assessment, but would pay no new taxes on the value of the improvements.

In the third year, the firm would pay taxes on 50 percent of the value of the improvements, and that would increase by 10 percent per year until the hotel pays taxes on 100 percent of assessed value in the eighth year.

Norwich's coffers already felt the boon of the new hotel project with Monday's transaction. The city clerk's office received $15,750 in property conveyance taxes Monday, along with $75 in recording fees for the paperwork. At the city building department, Assistant Building Official Greg Arpin was holding building permits already approved for the project and awaiting the property transaction.

Building permit fees totaled $44,562 for the $2.575 million in work overseen by inspections through the city building office, Arpin calculated. The project needs another $648,000 in work that would not need building permits, Arpin said.

Arpin said Engineered Construction has been cooperative through the permit process, and the company is expected to be on the property by 8 a.m. Tuesday to get started on the work.

The hotel originally was proposed by a Philadelphia-based developer under the name PRA of Norwich LLC. The firm ran into financial difficulties, and Winston Hospitality Inc. of Raleigh, N.C., took over the project in 2013. But the City Council balked at Winston's request for a more extensive tax abatement plan totaling $2.8 million over a 20-year period.

c.bessette@theday.com