IDA approves hotel tax package
At the Nov. 13 Buckingham Board of Supervisors (BOS) meeting, Assistant County Administrator and Finance Director Karl Carter presented to the board the Industrial Development Authority’s (IDA) decision to approve of a tax incentive package for a proposed 55-room Sleep Inn Hotel.
“At an IDA meeting held last night the IDA board, we met, and they decided to accept the tax incentive package for the hotel,” said Assistant County Administrator and Finance Director Karl Carter at the BOS meeting. “Of all the members present it was unanimous. I talked to them all and they were all in great support of the hotel and thought it was a great idea, so they approved the same tax incentive package that Ms. Carter read to you guys last month.”
During the previous Oct. 15 BOS meeting, County Administrator Rebecca Carter presented the board with an updated proposal for a hotel in Dillwyn. After hearing Rebecca’s proposal the board voted unanimously to approve the transfer of 3.5 acres of county-owned land to NHN, Inc. in order to construct the hotel, which will be located beside the Dillwyn Waste Site on State Route 750, Wingo Road.
The board agreed during its October meeting to consider certain incentives presented by Rebecca for the hotel’s establishment in the county. The total proposed incentive package being considered for taxes and property was approximately $124,900. The incentives involve a percentage of tax abatement for the property over a four year period, with total abatements amounting to approximately $89,900.
Incentives also involved a cost not to exceed $40,000 in order to bring water and sewer lines to the property line. Rebecca explained at the September meeting that a $1,000 per unit facility fee paid by the business and totaling $55,000 would offset this cost. She also stated that the county would recover all incentives from NHN, Inc. by year six.
“The IDA did approve the incentives as passed to them by the BOS,” said Rebecca in an interview with The Herald Dec. 2. “It is important for people to understand the county is not giving the hotel owners any upfront money. At the present time the county is not receiving any tax revenues or service from this parcel of land.”
“The tax incentives are a reduction in taxes they would pay to the county once the hotel is built,” said Rebecca in reference to NHN, Inc. “After five years the hotel will pay 100% of the assessed value of the land. It is expected that the county will recoup all incentives by year six.”
Rebecca highlighted that that tax incentives will encourage the establishment of a hotel with a conference center that can offer new jobs and community growth.