Norwich – The proposal to revive the defunct hotel project on Route 82 is moving forward this week, with the property owner's request for a two-year extension of the original planning and site development permits.

The Commission on the City Plan will hold a special meeting at noon Friday at 23 Union St. on the request from property owner CT Norwich LLC, a subsidiary of Winston Hospitality Inc., to allow a two-year extension to Sept. 19, 2018, of the permits originally approved Sept. 19, 2006. The request came two weeks after the City Council on Aug. 15 approved a zoning regulation change allowing developers to seek permit extensions of up to 14 years on approved projects.

Developer Patrick Levantino could not be reached for comment Monday. In recent weeks he has declined to comment on the project until the transaction is completed.

Robert Mills, president of the Norwich Community Development Corp., which has been working with the developer to revive the project, said Levantino has a Sept. 13 deadline to put the deal together, which led to the request for a special meeting by the planning commission. The commission's next regular meeting is Sept. 20.

Mills said reviving the project, and repairing extensive vandalism and metal theft from the abandoned building is expected to cost about $7 million.

The original hotel plan proposed by Philadelphia hotel developer PRA at Norwich LLC was approved Sept. 19, 2006. That plan called for a six-story, 113-room Hampton Inn & Suites with 142 parking spaces. PRA built the hotel structure and started some land work, but the project ultimately failed and was abandoned.

Winston Hospitality Inc. took over the project and purchased the property in 2013, but could not secure an extensive tax abatement package from the city needed to secure financing. Levantino's proposal calls for a much lower, seven-year phase-in of full property taxes based on a state economic development incentive law.

Because work stopped prior to completion, PRA at Norwich's planning permit expired Sept. 19, 2011, five years after approval under city regulations in place at the time.

The state legislature agreed to allow nine years of automatic extensions during the recession, bringing the expiration date to Sept. 19, 2015. The same state law allowed municipalities to pass regulations allowing extensions of up to 14 years, which the Norwich City Council approved Aug. 15.

The City Council would have to approve the tax abatement proposal for the project as well. Under the proposal, 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, with full taxes on the hotel value paid in the eighth year, according to Norwich Assessor Donna Ralston.

c.bessette@theday.com