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Council approves amended RDA incentive for hotel conversion to Comfort Inn & Suites
Summary
Morgan City and the Morgan City RDA approved an amended economic development incentive agreement to support conversion of the Cobblestone Hotel into a Comfort Inn & Suites. The amendment removes a clause that would have reduced annual payments if certain revenues were not collected.
Morgan City and the Morgan City Redevelopment Agency approved an amended economic development incentive agreement with the hotel owner to support the conversion of the Cobblestone Hotel into a Comfort Inn & Suites.
The amended agreement provides $775,000 in RDA incentives to the new hotel owners; the amount reflects the remaining balance of an earlier incentive the city offered. Staff recommended removing a clause that would have reduced an annual payment in years when the RDA’s revenues were below a certain threshold; council accepted the deletion so the overall payable incentive remains intact as long as the hotel meets the agreement’s performance conditions.
The resolution sets a payout schedule (included in the agreement) and retains the agency’s standard reporting and performance conditions tied to the hotel’s operation and occupancy. Council members said the amendment clarified payment timing and removed an unnecessary annual reduction clause that the parties agreed would complicate administration.
The resolution was adopted unanimously. The agreement is subject to standard RDA reporting and performance reviews.
