Tax breaks were approved Tuesday for the construction of a Hilton Garden Inn proposed for East Main Street downtown.
The County of Monroe Industrial Development Agency agreed to tax exemptions of nearly $2.15 million for 155 East Main LLC, an entity of Rochester-based DHD Ventures LLC. The projected community benefit is nearly $2.66 million, officials said.
The Rochester Business Journal first reported on the plans for the new hotel in its May 4 print edition. View the story here.
Despite a cost-benefit ratio of 1.24 to 1, county economic developers favor the incentive package because it would create jobs and renovate long-vacant buildings downtown. Some 55 jobs would be created, the application states.
The agreement includes a lease arrangement and 20-year payments in lieu of taxes totaling $13.85 million for 155 East Main LLC, and sales tax exemptions of $2.3 million for a related entity, Host Resident Partners LLC, on equipment and furnishings.
The net increase in property taxes over the length of the PILOT is in the range of $602,000, COMIDA representatives said.
The $16 million project would turn three vacant buildings on a half-acre parcel into a 115,000-square-foot, 106-room hotel next to the Hyatt Regency Rochester.
The project includes the renovation of buildings at 155-159 E. Main St., between Stone Street and South Avenue, and demolition and reconstruction at 25 Stone St.
Also on Tuesday, COMIDA approved property tax abatements of $724,633 for Dannic Holdings LLC, an entity of Doan Chevrolet, which plans to build a 37,000-square-foot building on Ridge Road West in Parma to house electric car charging stations.
The community benefit is projected to be nearly $1.15 million, officials said.
The $5.4 million project will result in a new facility next to Doan Chevrolet equipped to promote fuel-saving technologies, in addition to the charging stations, officials said. Three jobs will be created.
Sales and mortgage tax breaks totaling $30,400 were approved for Kaplan Container Inc., which plans to buy and renovate a 57,000-square-foot vacant building on 15 Jet View Drive in Chili for its new home.
The community benefit is $66,837, COMIDA officials said.
The nearly $1.6 million project will add two jobs to the company’s workforce of 20 in three years, officials said.
Kaplan—an industrial supplier of plastic, fiber and glass containers—has outgrown its leased space on Despatch Drive in East Rochester, company officials said.
Property tax exemptions of $39,544 were approved for Daniel J. Schwab Inc., which plans to add 5,640 square feet of space to its existing 11,200-square-foot Distech Systems Inc. facility on Mt. Read Boulevard.
The community benefit is $441,662, COMIDA officials said.
Founded in 1991, Distech designs and manufactures automation equipment for the automotive, machine tool, medical product assembly and packaging, and injection mold markets. It employs 14. The $350,000 addition will result in four new jobs.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email firstname.lastname@example.org.