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Consider a "STEP 4" Economic Development Incentive Grant for Monroe Hospitality (Project OVERNIGHT) 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:
1) Award a "STEP 4" Economic Development Incentive Grant in an amount not to exceed $940,000 over a five-year period and 2) authorize the County Manager to negotiate and execute an agreement substantially consistent with this agenda item.
PRIOR BOARD ACTIONS:
June 17, 2024, Regular Meeting, Agenda Item # 24-422 - Public Hearing Conducted.
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 ba...
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