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Hiawatha Takes Step to Help Proposed New Hotel

By Greg Bebermeyer

03/06/2012

The Hiawatha City Commission has taken the first step toward the creation of a community improvement district for a proposed new hotel.
The commission Monday evening approved a resolution setting a public hearing for their April 2nd meeting to consider the creation of the improvement district for three city-owned lots in the Longfellow Addition east of McDonald’s where the proposed new national chain 55-room hotel is to be built.
The commission took the action after authorizing Mayor Crosby Gernon to sign a petition requesting creation of the improvement district.
Creation of the improvement district will allow an additional two percent sales tax to be imposed for a period of 22 years to help finance the more than 3.6 million dollar project. The additional sales tax, paid by guests at the hotel, is proposed to begin on April 1st of next year. It’s expected to generate $450,000 over the 22-year period, based on a 70 percent occupancy rate.
Bond Counsel Kevin Cowan with Gillmore and Bell of Wichita said the creation of community improvement districts was approved by the Kansas Legislature in 2009 as an economic development tool ...( play audio )
City Administrator Lynne Ladner said construction of the new hotel could begin early this summer.
She said the developer, whose name isn’t being released at this time, currently has hotels in Derby and Maize with another under construction in Hutchinson.

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