The Hailey Urban Renewal Agency commissioners agreed on Thursday to reimburse developers of a planned 75-room Fairfield Inn by Marriott hotel on Main Street for up to $369,623 of expected costs to build required sidewalks, curbs, utility lines and other improvements on city rights of way around the property.
“We are very excited for our first major URA project,” URA Commission Chairman Larry Schwartz said.
The commission plans to finalize the plan with a vote after public comment on Thursday, April 18, at 10:30 a.m. at City Hall.
The three-story, 41,836-square-foot hotel was approved in 2017. It will feature an indoor pool, fitness room, breakfast dining room and a 400-square-foot meeting room.
The Hailey Gateway Urban Renewal District and its governing board of commissioners were established about five years ago to allow for revitalization in the downtown core through tax-increment financing.
The URA receives an additional amount of property tax that results from property value increases within the district during the time of the URA’s existence. The money is used to invest in renewal projects within the district.
Under an agreement reached Thursday with InnTrusted LLC, a hotel management company based in Idaho Falls, the URA will reimburse the company half of the additional tax revenue collected as a result of private property appreciation due to the hotel development.
“The plan includes various measures to mitigate and remediate the Gateway District,” the agreement states.
Annual reimbursements for the infrastructure costs will be about $61,929 per year for seven years. The precise payment amounts will be based on the levy rate and begin after the hotel receives a certificate of occupancy from the city.
The agreement stipulates that hotel construction begin no later than Sept. 1 and retain an active building permit, or the reimbursement agreement could be terminated within 180 days.
InnTrusted representative David Adams said the project would break ground in July and take about a year to complete.
“We can pretty much build year-round,” Adams said.
Community Development Director Lisa Horowitz said the now-vacant property at 711 S. Main St. is worth between $500,000 and $1 million. When the hotel is completed, the property is expected to be worth about $6.7 million.
The URA currently has $356,000 in the bank. Horowitz said URA funds have been used to pay for staff time, consultants and legal counsel.
Following the vote of approval for the Marriott project, Dawson said the URA is well-situated to facilitate funding for an upgrade to four blocks of River Street through a bond, which would have to be approved by voters.
On Thursday, the commission provided direction to Public Works Director Brian Yeager on design for an upgrade to four blocks of River Street. The commission will review amended plans for sidewalks, bike lanes, planting strips and parking configurations during its April 18 meeting.