NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The Hutchinson City Council approved on Tuesday the resolution for the Industrial Revenue Bonds and a resolution setting a public meeting on the proposed Community Improvement District for the Amber Hotel project, which is bringing a Hilton Garden Inn to Hutchinson at 1715 Waldron.
Amber Hotel, LLC will use the IRB’s for the purpose of the acquisition, construction, equipping and furnishing of a hotel, restaurant, and convention center. The estimated amount of the IRB’s is $18 million.
"What will happen is, when they issue IRB's, the City will become the leaseholder," said Hutchinson City Finance Director Angela Richard. "They will become the lessee of the property. We are not responsible for any expenses in operating the hotel, the convention center, or the restaurant. We also are not responsible for the issuance of the debt or the repayment of that debt in any way. This also will not effect our credit rating with Moody's. It will also not effect our bonding capacity. The city has very little to no risk in issuing these."
Amber Hotel LLC is responsible for paying all of the City’s expenses related to reviewing the bond documents and issuance of the IRB’s. Pursuant to the resolution, Amber Hotel LLC will apply for property tax exemption with the Kansas Board of Tax Appeals for 10 years and would not be required to make a payment in lieu of taxes per the development agreement, but that is only for that 10 year period.
"State law prohibits granting a property tax exemption in excess of 10 years to any given owner," said Sarah Steele with Gilmore and Bell.
There are 20 full-time and 40 part-time jobs projected, with 40,000 to 59,000 visitors per year. The average salaries of the new jobs will be about 80% of the county average wage, but the real benefits to the city will be from sales and guest taxes generated.
The development agreement also states that the city has authority to establish a CID for this location and that Amber Hotel intends to petition for a CID.
"This is not new to the city of Hutchinson," Richard said. "We have several of these. We have one at the mall, we have a couple hotels that have CIDs. What we're doing today is just setting the date for the public hearing. I wanted to make clear that this CID will only encompass the property that Amber Hotel and the restaurant sit on, only that parcel at that address."
The hearing date for the CID is March 21, 2023 at 9:00 a.m. or soon thereafter, at the scheduled city council meeting.
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