The developer seeking to remake the historic Edgewater Hotel is scaling back plans for the project, reducing the height of a new hotel tower and cutting the cost of the redevelopment.

The changes will reduce the cost of the project from $109 million to $90 million. Developer Robert Dunn said he still intends to seek $16 million in tax incremental financing, slightly less than the $16.8 million in public assistance originally requested.

"We have worked very carefully to address all of the concerns we've heard within the Mansion Hill neighborhood and elsewhere in the community," Dunn, president of The Hammes Co., said in statement. "We are looking at modifications that will reduce the mass and height of the building among a number of other issues. We believe our newest ideas greatly enhance the public space, and our TIF application reflects these changes."

Dunn has not yet released details of the revised plan. But some parts of it emerged emerged from the new TIF application filed by Hammes.

Among the changes: The new proposal envisions 180 to 192 rooms, including 107 rooms in the current Edgewater, compared to a total of 228 rooms in the initial plan. And the proposal adds 125 underground parking spaces rather than the initial 256 spaces.

The project still includes a new but redesigned public terrace between the current and new buildings overlooking the lake and grand staircase to the waterfront, but less banquet and restaurant space, city TIF coordinator Joe Gromacki said.

Mayor Dave Cieslewicz has proposed investing up to $16 million in TIF - $8 million in 2010 and the rest in 2011 - for the Edgewater in his proposed capital budget for 2010.

Dunn's new proposal would use $3.5 million for new parking spaces and $12.5 million to help offset the $29.3 million cost of the public terrace, grand staircase and foundation work for it, Gromacki said.

"It represents progress," Cieslewicz said. "The developer has been listening to the neighborhood. If people like the new proposal, they'll support the TIF."

Under TIF, the city and other taxing entities freeze property values in an area and value from new construction is used for private development and public improvements.

Dunn's request meets city TIF policies, and the $16 million should be repaid in about five years, Gromacki said.

The council will decide the capital budget the week of Nov. 10.

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