The company is seeking a second two-year extension on its TIF because of higher construction costs, supply chain disruptions, and the need to secure additional financing.
Within walking distance of Tanglewood, the hotel has been a frequent stop for notable celebrities over the years. It is known for its fine dining, wine cellar and luxuriously appointed accommodations.
The City Council on Tuesday approved a tax agreement to support the $17 million redevelopment of the Blackinton woolen mill into 50 luxury hotel rooms.
The hotel on River Street is planning to knock down two adjacent buildings at 22-28 Veazie St. and replace them with a new structure that will contain 11 rooms and four studios, and will allow for seven underground parking spaces.
The new owners, Pleasant St Holdings LLC, purchased the property on Jan. 18 for $600,000. They are working with local designer Beau Barela, who owns Hearts Pace tea shop in North Adams, to reconceptualize the design.