Council, CDA approve tax-increment financing for Hyatt Studios hotel

The York Community Development Agency and City Council approved a redevelopment plan amendment and authorized tax-increment financing to support the proposed Hyatt Studios hotel adjacent to the convention center.

Mike Bacon, the corporation’s redevelopment attorney, told the agencies the project would include at least 109 rooms and could represent approximately $18 million in private investment. He said the developer cannot currently achieve a market rate of return without public assistance and asked the bodies to authorize a TIF (tax-increment financing) note of about $1.35 million. Bacon described eligible uses as site acquisition, site development and utilities, and said the developer would share public parking with the convention center for a period tied to the financing term.

Developer Jonathan Kester of Collaboration Real Estate, who identified himself during the hearing, said construction costs have risen and that local incentives such as TIF are commonly used to make projects viable. Kester said he was “excited” to work in York and praised staff coordination.

Council members and staff described the project as a long-sought complement to the convention center. City staff presented a cost-benefit summary showing estimated tax diversion over the life of the note — including interest — of about $2.4 million, and annual estimated incremental lodging-tax and sales-tax receipts they characterized as net positive (staff cited roughly $150,000 in lodging tax and $75,000 in sales tax, figures presented as estimates). The staff review and a separate financial advisory board recommended approval after examining the plan and cost-benefit analysis.

The Community Development Agency voted to recommend approval (Resolution 2025-7). The City Council then held a public hearing and voted to adopt the plan amendment and related resolutions (including Resolution 2025-8). City staff said the redevelopment contract and issuance of the TIF note remain contingent on the developer documenting eligible expenses and complying with the terms of the redevelopment agreement; the council and CDA emphasized the TIF note can be cancelled if the developer fails to meet required conditions.

The council recorded unanimous approval on the related resolutions. The agencies did not identify a requirement for additional local taxes or a direct property-tax increase on current taxpayers; staff said the TIF program uses incremental tax growth related to the project to repay the note. The CDA’s final adoption authorizes staff to execute the redevelopment contract and issue the TIF note consistent with the adopted amendment.

Next steps: The redevelopment contract and supporting documents will be completed and executed according to the schedule in the plan amendment. The council and CDA said staff will monitor compliance and reimbursements according to the agreement’s eligibility and reporting requirements.