2015-44 ADDING TERRITORY TO ENTERPRISE ZONE Horve Hospitality Management, Inc.

Home Browse Search

Development Services No. 15-34 DATE: 9/8/2015 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Tim Gleason, City Manager Billy Tyus, Assistant City Manager Patrick Hoban, Economic Development Officer SUBJECT: Ordinance adding territory to the Decatur Macon County Enterprise Zone for an economic development project at 2225 S. Mount Zion Road in Decatur by Horve Hospitality Management, Inc. SUMMARY RECONIlVIENDATION: City staff recommends approval of this item amending the boundaries of the local enterprise zone to encompass a proposed four story, 80-room Hampton Inn Hotel in Decatur. ! BACKGROUND: The Decatur Macon County Enterprise Zone is an economic development tool that can provide incentives to spur local economic development. The current zone and its predecessor have been in existence since 1983 and have served as a critical tool in supporting local economic development activity. More than 160 projects representing nearly $407 million in direct investment benefitted from the availability of enterprise zone benefits from 2005 through 2014. The investment supported the creation of 1,621 new positions and the retention of more than 11,500 other employees. The proposed project will involve the construction of a four story, 80-room Hampton Inn representing an investment of more than$7 million. It is expected that the construction of this facility will begin in the fall of 2015 and will provide local construction jobs for appro�mately 110 trades people over the life of the project. The construction period is e�ected to take 6-9 months and the hotel is expected to support thirty full-time equivalent employees once it opens. We believe that an additional hotel in this location will create a "hotel cluster" which will attract additional visitors to the area providing benefits to retailers and restaurants in the area. The project is not utilizing property tax abatement but the amendment is critical due to the state credits and exemptions available in the zone and due to the sales tax exemption on construction materials. Horve Hospitality Management, Inc. was established in 2005 by Steve R Horve. The company commenced operations with the development, construction, and management of the Hilton Garden Inn and Homewood Suites in Champaign, II.. Soon after, the Decatur Page 10 of 212