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Public Hearing - Monroe Hospitality (Project OVERNIGHT) to Consider a "STEP 4" Economic Development Incentive Grant in an Amount not to Exceed $940,000 over a Five-Year Period
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INFORMATION CONTACT:
Chris Plate, Monroe-Union County Economic Development Commission, Executive Director, 704-282-5780
ACTION REQUESTED:
Conduct a public hearing.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
Monroe Hospitality, LLC is requesting an Economic Development Incentive Grant in support of the purchase of land, a new specialty hotel to Downtown Monroe within the Municipal Service District (MSD). The "STEP 4" Economic Development Incentive Grant (Grant Factor of 2.35%) is in an amount not to exceed $940,000 over a five-year period beginning in FY 2027.
Typically, we do not incentivize commercial operations like stores or hotels. For this grant, the project must occur and be located within a designated Municipal Service District (MSD) of a municipality within Union County, NC. The MSD's require higher standards for construction and are usually off the main commercial thoroughfares; therefore, to induce this investment within the core of a municipality, it is appropriate to assist in these projects.
The company is considering the purchase of former Hotel Joffre site in Downtown Monroe. The firm will construct a new specialty hotel with approximately 80-100 rooms, restaurant and other amenities. The project has a potential value totaling $40,000,000.
Based on the anticipated capital investment, it is proposed that the Board award an MSD focused "STEP 4" Economic Development Incentive Grant in an amount not to exceed $940,000 paid over a five-year period. The value of the incentive grant will be based upon appraised value each year as appraised by the Union County Tax Administration office. This grant is based on the company's projected total investment of $40,000,000 in land, new building(s), and equipment over the grant period, but not less than $30,000,000. Based o...
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