The construction of a new Holiday Inn in Ottawa cleared a final hurdle Wednesday morning as the Ottawa City Commission approved four ordinance that will provide for a Community Improvement District to help offset construction costs.
Ground was broken on the project and incentives were originally approved in 2017; and two one percent sales tax increases were originally supposed to begin in April of this year. Tyler Ellsworth, Kutak Rock, LLP, explained, due to the construction delay, those incentives will now begin in April 2020 following the new construction schedule.
Developer Mike Works told the Herald Tuesday the construction delay was caused by the project principle investor having to pull out of the project and a new investor had to be found.
One issue the commission questioned was the payment of property taxes on both the hotel property and the lot occupied by Arby’s, which opened in April. Those concerns were address by legal counsel for the developer stating the majority of taxes had been paid and the final $800 would be paid tomorrow.
The commission approved the passage of a second amended and restated development agreement with the developer contingent on the final portion of the property tax being paid.
Construction on the project should begin in June and the hotel should be open in 2020.
In other news the commission:
— Authorized the issuance of Industrial Revenue Bonds for a sales tax exemption for a project at 401 S. Main.
— Issued three proclamations recognizing May 18 at National Kids to Parks Day, May 2019 at Building Safety Month and May 12-19 at Police Week.