Tax exemption increase granted for Jamestown Hotel project
The DoubleTree by Hilton in Jamestown is receiving a little more savings through its mortgage recording tax exemption, and it’s due to increased investment for renovations.
On Tuesday, inside the SUNY Fredonia Technology Incubator, the Chautauqua County Industrial Development Agency’s Board of Directors unanimously approved to increase the value of the mortgage recording tax abatement for HH Jamestown, LLC, a subsidiary of Hamister Group. The company is currently renovating the former Ramada Inn on Fourth Street in Jamestown into a DoubleTree by Hilton.
Matt Mazgaj, counsel for the IDA board, said the company secured financing with Evans Bank. With financing for the project exceeding their prior projections, the mortgage recording tax abatement will increase from $106,500 to $157,600.
“They’re going to be investing more money into the project than initially conceived,” Mazgaj said. “As part of that, they’ve asked for a slight increase in mortgage recording tax abatement.”
With the board’s approval, Mazgaj said the company will close on construction financing with Evans Banks while starting to close on other loans.
The project, which is estimated now to be more than $13 million, received a sales tax exemption valued at $432,000, a 15-year payment in lieu of tax agreement equating to $1.9 million and a $900,000 Al Tech loan.
The hotel is expected to open sometime in the fall. Once the hotel finishes renovations and receives its certificate of occupancy, IDA officials say they’ll close the Al Tech loan.