Title
Hold a public hearing to receive public comment on a proposed one-time incentive for a planned hotel in the Russet Run development of Pittsboro.
Abstract
Action Requested: Hold a public hearing to receive public comment on a proposed one-time incentive for a planned hotel in the Russet Run development of Pittsboro.
Introduction & Background: Russet Run, a development by the Eco Group, is the first planned commercial development of Chatham Park. The Russet Run development plans include a brewery, a senior living center, a movie theater, a grocery store and a hotel. The Town of Pittsboro is without a hotel and relies on a small number of bed and breakfasts for overnight accommodations. With the Chatham County Agriculture and Conference Center nearing completion, a hotel to accommodate overnight guests attending various meetings is needed. Attracting a hotel is one of the Board of Commissioners’ goals for FY 2017.
Discussion & Analysis: While the Chatham County Incentive Policy is normally utilized in large job creation and investment projects, a hotel in the Town of Pittsboro is viewed as a catalyst project which could spur continued job growth, boost County tourism, increase overnight visitors and increase sales tax revenue. The hotel project is slated to create 100 rooms with an investment of $13 million and is projected to generate $202,356.00 of annual sales tax.
Budgetary Impact: The net budgetary impact would be positive due to the incentive grant representing only a portion of the taxes paid.
Recommendation: The recommended incentive is Level 5. As outlined below, this level of financial incentive would provide a grant equal to the following percentages of annual property taxes paid each year for a five year period. Taxes must be paid and other requirements met before the incentive grant can be released.
Year 1 - 90%
Year 2 - 80%
Year 3 - 75%
Year 4 - 75%
Year 5 - 60%