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The Steuben Courier Advocate
  • Steuben IDA approves tax breaks for hotel near Hammondsport

  • The Steuben County Industrial Development Agency approved a package of tax incentives Thursday for a $6 million hotel expected to be built this summer near Hammondsport.
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  • The Steuben County Industrial Development Agency approved a package of tax incentives Thursday for a $6 million hotel expected to be built this summer near Hammondsport.
    At Thursday’s meeting in Bath, the IDA board OK’d sales and mortgage tax exemptions, as well as a 10-year payment-in-lieu-of-taxes (PILOT) agreement that is standard for such economic development projects, said Jamie Johnson, the IDA’s executive director.
    The 64-room hotel would be built at 8440 State Route 54 in the Town of Urbana, near the Glenn H. Curtiss Museum. It will be a national brand, but the brand has not been named yet. The developer could not be reached for comment Thursday.
    The developer - East Lake Investments of Campbell - has bought a property currently occupied by a Clark Specialty Co. machine shop. Clark Specialty Corp. is consolidating operations at another facility in Bath, and the Urbana building will be razed to make room for the hotel.
    East Lake Investments is still working on getting the various permits needed for the project, Johnson said.
    “They are working through the site plan review, and they’ve been meeting with the Urbana planning board,” he said. “They did get their demolition permit, so they can start demolition soon.”
    The PILOT granted by the IDA will give property tax relief on the increased assessment once the hotel is built, Johnson explained.
    The hotel owner will pay taxes on the $350,000 current assessment of the Clark Specialty Corp. building, but will get relief on the future increased assessment. It starts at 90 percent abatement in the first year of the PILOT, then scales up 10 percent per year. After 10 years, the hotel owner will be paying taxes on the full assessed value.
    The hotel project was also awarded a $750,000 state grant through the Southern Tier Regional Economic Development Council in December.
    The hotel is expected to create the equivalent of 15 full-time jobs, with employment fluctuating seasonally. The hotel is being built to serve the Hammondsport-Keuka Lake tourism market.

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