Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Gardner council approves tax abatement, creates CID for proposed dual-brand hotel
Summary
City council approved a resolution to issue industrial revenue bonds up to $23 million and adopted an ordinance forming a 20-year Community Improvement District that will levy a $5 per-room-night assessment to support a proposed Staybridge/ Holiday Inn Express project near 170th Street and Clare Road.
The Gardner City Council on Feb. 1 approved a resolution authorizing taxable industrial revenue bonds up to $23 million and adopted an ordinance creating a 20-year Community Improvement District to support a proposed dual-brand hotel near 170th Street and Clare Road.
The hotel developer, Gardner Hotel LLC, plans a dual-branded property with Staybridge Suites and Holiday Inn Express on a roughly 3-acre parcel in the Grammer master development. Tyler Ellsworth, the city’s bond counsel, told the council, “It’s my understanding that this is the first of its kind in the country.” Kirk Peterson, representing the applicant, described the pair of franchises as complementary, saying, “Staybridge... is such a great family hotel.”
Why it matters: The council approved two distinct public incentives that structure public cost and developer reimbursement. The industrial revenue bond (IRB) resolution authorizes issuance of taxable IRBs to support the project; the city stressed these bonds are not general obligations. Wolf explained, “They don't constitute a pull or a pledge of full faith and credit. They're not payable in any manner of taxation.” The CID ordinance establishes a $5 per-room-night special assessment for 20 years; $3 of each $5 will reimburse the developer and $2 will fund specific public infrastructure near 170th Street and Clare Road.
Key details: The cost-benefit analysis prepared for the council examined a 10-year property tax abatement structured as a payment-in-lieu (PILOT): 75% abatement in years 1–2 and 50% abatement in years 3–10. The consultant's analysis — provided in the council packet and summarized at the hearing — found benefit-to-cost ratios above the council’s 1.3:1 benchmark for the included taxing jurisdictions (city, county, state and school district). The CID is structured as a special assessment rather than a sales tax; the council record shows a CID cap of $3,300,000 and a 20-year term for the $5-per-room-night assessment.
What the council voted: The council adopted Resolution 02/1963 to authorize IRBs (outcome: approved) and then adopted Ordinance No. 2826 to create the Dual Brand Hotel Community Improvement District and authorize the CID special assessment and a development agreement (outcome: approved). Council roll calls recorded affirmative votes during both actions.
Next steps and limits: Councilmembers and staff said the development agreement, the CID formation ordinance and the IRB steps are part of a multi-step approval sequence; later agenda items and administrative approvals (franchise approvals, final plat/detailed permits) remain. Peterson said franchise approval and final design will proceed through the city’s normal review process. The approved incentives are contingent on those follow-up approvals and the terms recorded in the development agreement.
Votes at a glance: - Resolution 02/1963 (authorize taxable IRBs up to $23,000,000): adopted. - Ordinance No. 2826 (create Dual Brand Hotel CID; authorize $5 per-room-night assessment; development agreement): adopted.
Sources: Remarks on the record by Tyler Ellsworth (bond counsel), Kirk Peterson (developer’s counsel), and council roll call recorded during the Feb. 1 meeting packet.
