Plans for a unique seven-story hotel on the edge of the Kansas University campus will require unique tax help, developers said Monday.

The development group – led by executives of Gene Fritzel Construction Co. – said it wants city approval to establish a special sales tax zone for the project and to use tax increment financing to help pay for parking and other infrastructure.

The unique and expensive construction process for the building – which would be one of the city’s taller buildings – makes the financing options necessary in order for the project to be feasible, developers said.

“The parking garage will be unlike anything else in town,” the development group said in a statement. “We’re talking about building a seven-story building that is built on top of a five-story underground structure.”

The two special taxing options that are being proposed would require the city, county and school district to allow some future tax revenue created by the project – slated for 12th and Indiana streets – to fund infrastructure.

One request – a Transportation Development District – would allow the hotel and its restaurant to charge an additional 1 percent in sales tax. It would be the first time the city has used the concept.

The second request – for tax increment financing (TIF) – essentially allows a development to earmark any property and sales tax revenues that are above the amount generated today by the property. The earmarked money then pays for infrastructure.

The proposed TIF deal is different from the one other TIF used in the city – to redevelop the 900 block of New Hampshire Street. In the hotel proposal, developers have agreed to sign paperwork that would protect the city in case future tax revenues aren’t enough to pay for the bonds.

The developers are not seeking city at-large funds to pay for infrastructure.

At their Nov. 6 meeting, city commissioners are scheduled to discuss the financing idea, which received favorable reviews Monday.

Commissioner Mike Amyx said he likely would be comfortable with the idea as long as assurances were in place that developers would handle any shortfall in bond payments. That wasn’t part of the TIF agreement for the 900 block of New Hampshire Street.

“If that happens, it sounds like a good way to go,” he said.