Hutchinson authorizes taxable IRBs for Amber Hotel; 10-year tax abatement requested

The Hutchinson City Council on Nov. 4 approved an ordinance authorizing the issuance of taxable industrial revenue bonds (IRBs) for the Amber Hotel project, a Hilton-branded hotel adjacent to the convention center.

Angela Richard, Hutchinson director of finance, explained the process: if the bonds are issued the city becomes the leaseholder of the property while the debt is outstanding and Amber Hotel LLC will be the lessee. "The city is not responsible for paying back the debt in any manner," Richard said, and the city will deed back the property to the lessee when the bonds are paid in full. She also said Amber Hotel LLC requested a 10-year property tax abatement; no payment in lieu of taxes was included in the council packet.

Sarah Steele of Gilmore Bell attended by Zoom and was available for legal questions. City staff characterized the IRB structure as standard for industrial and hospitality projects the city has previously supported.

Councilmembers approved the ordinance and authorized the mayor to sign. The vote authorizes staff and city legal counsel to finalize the bond documents and to proceed with the technical steps required for issuance should the developer finalize the conditions spelled out in the ordinance package.

Authorities and process: staff described the IRB and leaseback arrangement typical for municipal industrial revenue bonds and noted the requested property tax abatement would run for a 10-year period under the terms presented to council.