No IDA PILOT For Exit 12 Hotel Project

There will be no Payment In Lieu Of Taxes for the proposed hotel project at Exit 12 on Interstate 86.

On Tuesday, the Chautauqua County Industrial Development Agency Board of Directors held its monthly meeting, and discussed the incentive package for the proposed project. The applicant, Boxwood Hotel LLC, had applied for sales tax abatement on construction materials and the mortgage recording tax, and for a PILOT program. Jonathan Taber, IDA Board counselor, said during the meeting the original motion to offer all three tax incentives had been amended to not include a PILOT program. The change in the motion had come from public input against offering a PILOT package, which most notably came from city of Jamestown officials.

During a public hearing on the proposed project Sept. 10, Robert Kenyon, Jamestown economic development coordinator, read a letter addressed to Michael Metzger, county Industrial Development Agency board chairman, from Jamestown Mayor Sam Teresi; Greg Rabb, Jamestown city council president; and Vince DeJoy, Jamestown development director. The letter stated city officials are not opposed to private development at the exit, but they question if tax abatements are necessary to be given to the developers.

DeJoy, who attended the IDA meeting Tuesday, asked if the project developers would cancel the project if no tax incentives were given. Bill Daly, county IDA executive director, said tax incentives are necessary or the developers would not proceed with the project.

Both Metzger and Daly said Ellicott officials support the project, and see the development as necessary to enhancing economic expansion at all three I-86 exits in the town, which would be a benefit for both the town and the city.

William Salter, Boxwood Hotel consultant, said the developers are also working on a construction project in Niagara County, where they did receive a PILOT program. He said Boxwood is also looking for a third site along I-86 for a hotel, as well.

After the discussion, the IDA Board voted unanimously to accept the tax abatement incentive package for the construction project.

After the meeting, Jayesh Patel of Boxwood Hotel said he would have liked to receive the PILOT tax abatement incentive. He said they will make a decision in the next 30 days if they will move forward with the project. He said if the project continues to move forward the next step for the company is to go before the Ellicott Planning Board. The proposed hotel would be a Holiday Inn Express. Boxwood Hotel also owns the Hampton Inn at Exit 12 and the Best Western on Third Street in Jamestown.