In February of 2022, a redevelopment grant in the amount of $250,000 was approved by the Board in respect to the development of an 89-room limited-service hotel on 1.2 acres of property at 6206 U.S. Highway 19.  At that time, it was estimated that the project would yield $1,129,564 in tax increment revenues over a ten-year period with a modest valuation growth rate of 3%.  The twenty-year projection of tax increment revenues was also modeled with the same modest valuation growth rate and indicated a yield of $2,661,473 to the district as a direct result of the project.

The developer has invested over $12,000,000 on the project which includes both the purchase of property as well as the construction costs associated with building out the site. When calculating the investment amount in comparison to the economic incentive that the CRA provided the result is that the economic incentive was less than 1% of project costs.  Naturally, there are many factors taken into account when considering and ultimately establishing the appropriate amount of any financial incentive package to be presented to a potential developer.  It can be fairly stated though that the value of this specific project to the U.S. Highway 19 Corridor and the city in general does exceed the amount of support that has already been approved and therefore this matter may warrant additional consideration.

Incidentally, the Water and Sewer Impact Fees associated with the project total $256,500.  Therefore, the request represents 50% of the total amount that is payable as a result of the project.