TERRE HAUTE, Ind. (WTWO/WAWV) — Around $50 million will be invested in downtown Terre Haute.

A new eight-story Courtyard + Residence Inn will be built along with a three-floor parking garage.

The project will be funded by both public and private dollars with a majority coming from the private sector. Last week, $4.3 million worth of READI grant funds were awarded to this project.

To see a full list of upcoming projects, click the link below.

In this process, the Old VCSC building will be torn down to make way for the dual facility. The property is owned by the City of Terre Haute Department of Redevelopment.

Mayor Duke Bennett said more lodging will help Terre Haute achieve its goals of growth in tourism and economic development.

“We need those rooms. We currently have about 200 hotel rooms downtown and we need another 200. We’re already telling potential users of the Convention Center that we don’t have those numbers. They want everyone to be together for those types of conventions,” Bennett said.

A rooftop pool and bar will be built overlooking the city. 204 total rooms will be built between the two hotels. They’ll be split up with 114 at the Courtyard and 90 at Residence Inn.

To see a proposed rendering provided by Vigo County Commissioner Chris Switzer, click on this link.

A three-floor garage will be built to accommodate 295 vehicles. On the second floor of the parking space, an overhead walkway will be built to connect to the Hilton Garden Inn on Seventh Street.

Owner and Chef of Federal Coffee, Kris Kraut, said his restaurant has seen an increase in customers ever since the Convention Center’s grand opening. He adds a hotel will keep the momentum going.

“As other business owners are investing in downtown and the properties, it’s good for us. It helps us up to our game and keeps us competitive,” Kraut added.

New murals will be painted on the building’s exterior by local artists.

According to the Community Plan, the Terre Haute Convention and Visitors Bureau (THCVB) experienced its 24th consecutive year of financial growth in 2018.

“It changes the landscape for us and so all the people that are come and spend their money helps us with our Food and Beverage Tax and our Lodging Tax. Those funds then turn around to invest into our community, “Bennett added.

Below is more information outline by the Wabash Valley RDA proposal as outlined by the proposal:

According to data presented at the Community Hearing for Vigo County Food & Beverage, Terre Haute welcomed 130,000 visitors in 2017. Terre Haute – Vigo County continues to attract many visitors from across the state and nation. The Lavern Gibson Cross County course on average brings 30,000 visitors each season and averages 40,000 visitors when hosting a National Collegiate Athletic Association National Championship. Terre Haute – Vigo County is home to four institutes of Higher Education including Indiana State University, Rose-Hulman Institute of Technology, Saint Mary-of-the-Woods College, and Ivy Tech Community College that bring in visitors throughout the year for college visits, athletic events, homecomings and more. Additional events taking place within the community include con-certs held at The Mill Terre Haute, races at Griffin Bike Park, airshows at the Terre Haute Regional Airport, and spending the weekend at the Blues at the Crossroads Festival, and people attending events at the Terre Haute Convention Center.

“It’s awesome to have plenty of entertainment choices when you’re downtown. Of course, I hope the guests staying at the hotel will come to visit the coffee shop and restaurant. It brings more people downtown which can’t hurt,” Kraut added.

Bennett hopes construction will begin by the end of next year.