City officials said the abatement is valued at approximately $104,000 a year for a total of $1.24 million over the 12-year abatement period. The city’s portion of the property taxes that would be abated is estimated to be $9,660 a year or $115,920 over the abatement period.
In 2010, Middletown created a community reinvestment area to use all reasonable incentive measures to assist and encourage development in the downtown area of Middletown. Based on state guidelines, CRA abatements can be used for residential developments, industrial/commercial developments, or a combination of both.
Grau recently informed council about his $12.7 million plans to redevelop the 93-year old Manchester Inn, which closed four years ago and restore it back to an operating 70-room/suite boutique hotel.
The redevelopment of the Manchester Hotel building into a boutique hotel with a restaurant, conference and meeting space, and additional commercial office space as well as the historic ballroom event space.
“The redevelopment of the hotel would also represent a significant step forward the downtown area,” according to a city staff report.
According to the proposed agreements, work was scheduled to begin on June 1 and be completed by Dec. 31, 2016 and is expected to create 73 new full- and part-time jobs between Jan. 1, 2017 and Dec. 29, 2016. The dates were changed from a previous document to reflect the new time frames.
Matt Eisenbraun, the city’s assistant economic development director said in his staff report the new hotel employees should generate about $860,000 in additional annual payroll.
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