Worcester considers $2.4M tax break on Washington Square hotel
Photo/Zachary Comeau
The developer who built the Homewood Suites on Washington Square is looking to develop vacant land across the street, in front of Union Station.
The Worcester City Council on Wednesday will consider a proposed 10-year tax increment financing plan for the upcoming 105-room hotel in Washington Square, would save the hotel’s owners $2.4 million.
City officials have sent a proposed TIF plan to the city council for its review at this Wednesday’s meeting. The proposed TIF would be for 10 years at a 30% exemption rate for an estimated savings of approximately $2,402,292.
During that time, the city is anticipated to receive $5,761,747 in tax revenue.
In a letter discussing the agreement, City Manager Edward Augustus updated the council not only on the negotiated TIF, but details about the hotel is planned to go in near Union Station in Worcester.
The Home 2 Suites by Hilton, to be built by First Bristol Corp., has been revised up to 105 rooms with an estimated investment of $21,780,000 from a previously reported 96 rooms. According to the document discussing the TIF, construction of the 74,000-square-foot hotel will begin next year and create a minimum of 35 full-time jobs by 2023.
Augustus was bullish on the impact this hotel would have on the city.
“The project will redevelop a challenging piece of tax-exempt property, provide an active reuse that will add further density to downtown, create new jobs for the local economy and generate new tax revenue for decades to come,” Augustus said in a letter to the council that accompanied the TIF information. “The hotel will also add to the city’s total room count to help open the door to new events and conferences at the DCU Center.”
Augustus added the Worcester Redevelopment Authority is in the final stages of selling the land to the developer for $400,000.
The council is being asked to send the TIF proposal to the Economic Development Committee for review and deliberation.
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