City-owned hotel will earn Cedar Rapids money, even though it won't reopen until 2013

The now-city-owned, former Crowne Plaza Five Seasons Hotel will begin to earn the city revenue, even though it's not slated to reopen after renovation until about June 2013.

The revenue will come in the form of a lease with New Cingular Wireless PCS, which will pay the city $153,000 over five years to lease space on the top of the hotel for the company's wireless communications equipment.

The lease, which is retroactive to March 2011 when the city took over ownership of the hotel, includes options for three additional five-year periods. The full 20-year lease would generate $659,449 for the city, according to a memo from project manager John Frew to the City Council.

The city bought the hotel from its creditors for $3.2 million and closed it to undertake a $25 million-plus renovation, which is under way.

The U.S. Cellular Center arena, which is attached to the hotel, also is closed for renovation as a new convention center goes up next door.

The hotel will reopen as a DoubleTree by Hilton hotel.