The Unified Government's Board of Commissioners approved a redevelopment plan and agreement for the TIF project on 39th and Rainbow.

The UG is partnering with Rainbow Real Estate Partners, LLC on a four-part project in the area. Two parts of it were approved last night.

Once completed, an 89-room hotel will be built, with a 68-room apartment building and over 30,000 of square feet of commercial retail will be available. About two-thirds of the retail must generate retail sales tax, according to the agreement.

The total project will cost $35 million, with the developer receiving $5.9 million in TIF incentives. A self-imposed sales tax and new market tax credits will also fund the project.

Although the project's completion isn't schedule until Dec. 31, 2011, a lot of the work is done.

"About 65 to 70 percent of the tenants are pretty much filled up," said Chase Simmons, an attorney representing the developer. "We have to work out some details with others."

Simmons promises a "national franchise" hotel. The project is also looking for an apartment manager.

While it's full speed ahead on the development front, there's one business that feels left behind.

Representatives from Jaywalkers Sports Bar, a restaurant bar and grill, spoke about the development. Jaywalkers and a small hotel are scheduled for demolition to make room for the development.

Shawn Nelson, a manager partner at Jaywalkers, said the business feels like it has "no protection" on the matter.

"We have six years left on our lease," Nelson said. "We have not been involved in these discussions. We would like one or two pages in the agreement that will protect our losses."

Other representatives of the bar and grill say a buyout of $70,000 has been offered to them. Meanwhile, Jaywalkers said they have invested over $180,000 into the business.

"For three years we paid our taxes and we tried to do a great job for the community," said Phil Nigro, another partner in the business. "These guys should step up to the plate. We got an offer that's less than half of what we invested. It's 'take your losses and get out.'"

Deputy County Administrator Doug Bach said the UG was aware of the situation.

"We made sure good communication was happening," Bach said. "There's nothing to indicate that communication wasn't happening."

Simmons said the development group would work around the business if necessary.

"We can design around it," he said. "That's not the best thing. We've asked for a counter offer and they have been involved in the process."

The project has been planned since last summer. A public hearing that spanned over two separate meetings was held earlier this year.