By Patrick Crowley
The Cincinnati Enquirer

Markus Lohner, who will be brewmaster at the Hofbrauhaus, stands in the fermenting room of the complex. It should open next month. (Patrick Reddy photo) | ZOOM |

NEWPORT - This city's riverfront is poised for another growth spurt.

The Hofbrauhaus restaurant and beer garden opens in mid-April, and a $25 million expansion of Newport on the Levee is moving forward.

But a planned hotel has been delayed.

The $5 million Hofbrauhaus, the second in the world outside the German namesake in Munich, plans to open its Third Street location over the weekend of April 25-26.

The dates were chosen to coordinate with the planned opening of The Purple People Bridge, the pedestrian walkway being developed on the L&N Bridge between Newport and Cincinnati, said Hofbrauhaus developer Eric Haas of Fort Thomas.

"Our grand opening will be scheduled in the middle of May," Haas said. "But we're trying to open by the end of April so we have something available for the bridge opening that weekend."

Across Third Street, the $200 million Newport on the Levee entertainment complex has begun planning an expansion that will include a 17,000-square-foot women's apparel store and the completion of additional retail space, said Barry Rosenberg, president of Columbus-based Steiner & Associates, the developer and operator of the Levee.

Work is expected to begin in late summer and take eight to nine months, Rosenberg said.

Tax break

The women's apparel store, which Rosenberg would not name, will be located near the U.S. Bank IMAX Theater.

The other stores, which Rosenberg also declined to name, are planned for retail space that will be developed in the existing mall.

At its Easton Town Center in suburban Columbus, tenants include Ann Taylor, Victoria's Secret, Talbot's, Anthropologie, Arden B., BCBG Max Azria, bebe, Benetton, Chico's, The Icing, J.Crew, Lucky Brand, Mimi Maternity and Steve Madden.

Because of the shaky economy and a sluggish local lodging market, plans for a $15 million Hilton Garden hotel that would be built adjacent to the Levee are on hold, Rosenberg said.

According to the Northern Kentucky Convention and Visitors Bureau, hotel occupancy in Boone, Kenton and Campbell counties experienced a slight gain of 0.5 percent last year - compared with a 1 percent decline nationally. Across the river in Southwest Ohio, occupancy grew by 3.8 percent. But that gain was somewhat inflated by a 2.5 percent decrease in room supply.

Rosenberg said he is optimistic that the hotel will eventually be built, but right now "leaders are cautiously evaluating the hotel industry in Greater Cincinnati."

Both the Hofbrauhaus and Levee expansion are potential beneficiaries of an $11.25 million tourism tax credit approved last week by the Kentucky General Assembly.

The tax credit allows operators of tourism attractions to recoup 25 percent of their development costs by holding on to a quarter of every dollar customers pay in sales tax. Both projects must still qualify for the tax break, but state officials predict approval.

Once the entire $40 million expansion is completed, with construction of the hotel, the Levee could be eligible for a tax break of $10 million.

Incentive needed

The initial first phase of the Levee qualified for the tax break. But because work on the expansion did not meet a 2001 deadline to apply for the break, legislation was needed for the incentive to be extended.

Rosenberg has said that without the tax break, Steiner could not have completed the project.

The Hofbrauhaus also applied for the tax break but was going to open regardless, Haas said. "But when we made an application with the state, they came back and said restaurants don't qualify."

To qualify, projects must show that a large percentage of its business comes from tourists.

The legislation was retooled to include themed-based restaurants such as the Hofbrauhaus, which will use tours of the brewing process, entertainment in the beer garden and a history of the Hofbrauhaus in Germany to attract tourists.

Hofbrauhaus could ultimately recoup up to $1.25 million of the project's cost.

E-mail pcrowley@enquirer.com