MSC News

MSC News National Headlines Sports Top Headlines CBS US News CBS Technology

Printer Friendly

Email to a Friend

Commission denies tax abatement for hotel improvement project

By Greg Bebermeyer

03/14/2025

(KNZA)--The Hiawatha City Commission has denied a 10-year property tax exemption for a $1.2 million improvement project planned at the Best Western Plus Hotel, which is being financed through the issuance of industrial revenue bonds.

A motion to approve the tax abatement failed Monday evening on a 2-3 vote. Mayor Becky Shamburg and Commissioner Dave Middendorf voted in favor of the motion to grant the tax exemption, while Commissioners Brian Shefferd, Tom Martin and Laura Tollefson voted no.

Shefferd voiced concerns about the precedent it would set. Martin said he liked having a nice hotel, but said the city needs the funds to run as well.

The action followed a hearing drawing no public comment and review of a cost benefit analysis prepared by Wichita State University, which showed the project would provide a positive cost-benefit ratio to the city.

A ten-year tax abatement was granted when the city approved the issuance of up to 4 million in industrial revenue bonds in 2012 for the construction of the hotel.

The hotel went on the tax rolls this year.

You will need to be logged in to leave a comment.

Please Login

The posting of advertisements, profanity, or personal attacks is prohibited.

Click here to review our Terms of Use.