Hamilton board reviews $35 million hotel plan, a 30-year TIF and 15-year CRA with school make‑whole deal

Mister Sprague told the Hamilton City Schools Board that a previously discussed downtown hotel development has expanded and is now being presented as a $35,000,000 project that would include two hotels, a Home2 Suites and a Hampton Inn, and roughly 160–180 rooms. "Just received an update from Jody Gunderson that that number is now a $35,000,000 project with, approximately a 160 to a 180 rooms," he said.

The presenter said the deal includes a 30‑year tax increment financing (TIF) arrangement and a 15‑year 100% community reinvestment area (CRA). As part of the negotiation, the district and city agreed a school compensation or "make whole" provision so that when the CRA period ends the school district would receive the property taxes it would have received without the TIF. "There's also enough money in the deal, where we are able to recoup some of those dollars that were lost during the CRA period," he added.

Why it matters: under the board presentation, the site is currently a city parking lot that yields no property tax and the project is projected — using conservative growth assumptions — to generate an estimated $8.5 million in revenue for the district over the 30‑year TIF life. The presenter emphasized the district’s priority position for receipts when no municipal debt is issued against the project.

Board members asked practical questions about logistics, timing and impacts. One member asked whether Whitway would be removed as part of the plan; the presenter said that is part of the concept but may not be final because another development is planned on an adjacent lot. The presenter also said the city will finance a planned quiet zone and that the district would share excess TIF revenues after the CRA expires: "Our piece is to make up for what we've given up during the CRA period, and the city's piece is to help finance and pay for that quiet zone."

Timing and next steps: the presenter said the developer anticipates breaking ground in the spring or summer after outstanding safety checks and permitting are complete and that the board could see legislative language at the December meeting. "As soon as that's done, the city's gonna pass it and be ready to roll," he said.

What the board approved at the meeting: the update was informational; the formal legislative language and any required local ordinances or agreements (TIF/CRA, school compensation agreement) had not been adopted by the board during this session.

Provenance: story based on board presentation and Q&A (topic intro at SEG 308; topic finish at SEG 446).