BREAKING NEWS

BREAKING NEWS

Public Hearing Set On Exit 12 Hotel Project

ELLICOTT – A public hearing will be held next month on the proposed hotel project for Exit 12 along Interstate 86.

Bill Daly, county Industrial Development Agency director, said the public hearing will be held at 5 p.m. Tuesday, Sept. 10, at the Ellicott Town Administration Building, 215 S. Work St., Falconer.

”We will have a public hearing, and people can come and comment on (the project). If people come, we take their comments,” Daly said.

The new hotel project is being proposed by Boxwood Hotel LLC, Daly said. The company also owns the Hampton Inn located at Exit 12 and the Best Western along West Third Street in Jamestown. A Holiday Inn Express is the proposed new hotel.

After the public hearing is held, Daly said the IDA Board of Directors will then decide if it should give tax abatement incentives for the project to Boxwood Hotel. The incentives could include sales tax abatement on construction materials and for anything in the facility that has a use-life of longer than a year; an abatement on the mortgage recording tax; and a Payment In Lieu Of Taxes.

”We can choose to do nothing or we can choose to do them all,” Daly said.

The IDA director said Boxwood Hotel was given tax abatement incentives for the Best Western and Hampton Inn projects. Daly said even if the IDA doesn’t grant a PILOT agreement to the company, they are still entitled to tax abatement incentives through the state.

”When you do a new construction project in New York state there is a 485b that everyone is entitled to,” he said. ”What that would give you in the first year is 50 percent tax exemption on real estate property taxes. Then it decreases 5 percent for the next nine years. Then they pay 100 percent in the 11th year.”

Daly said if the IDA board does agree to a PILOT agreement, the tax abatement incentives could be better than what the company is already entitled to through state law.

”We can change the percentage and we can change the terms with a PILOT,” Daly said.

Daly said a decision from the IDA Board on a PILOT agreement should be made during its next meeting, which is scheduled for Tuesday, Sept. 17. Earlier this month, the Ellicott Town Board sent a letter supporting the project to the IDA.