Consider and take appropriate action on a First Amended and Restated Chapter 380 Economic Development and Performance Agreement between the City and Myrish Hospitality, Incorporated, for a Hampton Inn Brand Project; and authorizing the Mayor to execute necessary documents.

Staff Report & Agenda Item Details

The Hampton Inn plans to break ground later this year in the King’s Fort Development. As part of the terms of attracting this development, a Chapter 380 Agreement granting back a portion of their hotel occupancy taxes (HOT) for a period of time plus infrastructure assistance is recommended. The agreement includes the following provisions: HOT Rebates Year 1 – 65% Years 2-6 – 60% Year 7 – 50% City also to provide an infrastructure grant upon C.O. in the amount of $100,000 (this amount will be split 50/50 between the City and KEDC with a separate agreement between the two entities). Developer is required in exchange for the agreement to acquire a Direct Pay Permit for materials sales tax from the Comptroller and restrict the use of the property from multifamily uses and place a SUP requirement on the property for extended stay concepts.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 7.5/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).