HUTCHINSON, Kan. — The Hutchinson City Council on Tuesday will go over the resolutions for the Industrial Revenue Bonds and take up 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 is proposing to issue IRB’s for the purpose of the acquisition, construction, equipping and furnishing of a hotel, restaurant, and convention center. The estimated amount of the proposed IRB’s is $18 million.
If the proposed IRB’s are issued, the City will become the leaseholder of the property and Amber Hotel LLC will be the lessee. The City is not responsible for any of the expenses related to the property. Debt service payments are also the sole responsibility of Amber Hotel and no City funds or taxes are to be used to make debt service payments.
In addition, 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.
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. The actual petition was signed by the Hutchinson Regional Medical Center, Inc, as they are the current owner of the property and transfer of ownership to Amber Hotel may not be completed before the hearing date.
Amber Hotel has petitioned for a CID. The first step is to adopt a resolution establishing the public hearing date and time to discuss and determine advisability of the CID. The proposed CID hearing date is March 21, 2023 at 9:00 a.m. or soon thereafter, at the scheduled city council meeting.
The Hutchinson City Council will meet Tuesday at 9 a.m. at City Hall.
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