STILL NO FINANCIAL INCENTIVE AGREEMENT WITH BOULDER’S INN AND SUITES
(Atlantic) The Atlantic City Council decided Wednesday night to rescind an agreement in regards to a financial incentive for the $1.4 million Boulder Inn and Suites Hotel project under construction on the southwest edge of Atlantic. Originally, the city council agreed to an incentive package including $125,000 from the city’s economic development fund and $25,000 a year in tax abatement to be spread out over four years. But, Mayor Dave Jones says last month it was discovered that the agreement had not been signed.
“About three or four weeks ago Governor Branstad was proposing a tax cut for commercial property and me and Deb were talking about (how) we needed to probably figure out some way to protect us if that goes through in a voters deal, to protect our investments on the tax increment things, and we started talking to Dave and at that time Dave said ‘you don’t have an agreement’,” said Jones.
Therefore, Atlantic City Attorney Dave Wiederstein and the City’s Bonding Counsel recommend they rescind the agreement. So now what? Wiederstein says the city will move forward on a new agreement, but there are no guarantees at this time.
“The city officials are going to move forward on crafting a new agreement, we hope, that will meet to the approval of the council at the next meeting,” said Wiederstein.
When asked if Boulder’s is going to get their money, Wiederstein said, “No guarantee’s right now, that’s my advice to the council.”
The goal is to have that agreement available for discussion at the May 18 city council meeting.
Meanwhile, Atlantic Businessman Keith Steffens approached the city council to address some misinformation that he feels is out on the street in regards to the Boulder’s Inn and Suites project.
“Apparently tonight you received, I haven’t seen it, but apparently there were letters or a letter from the lender saying that the money from the City was a vital part of the financing of that project, am I correct on that?” asked Steffens. The answer was yes.
Steffens went on to say that, “Word on the street is, and some of this is coming from the council members from what I understand, comments like ‘apparently they don’t really need the money because they went ahead with the project and you know the project is near completion so apparently the money isn’t needed’, but as you can see it was part of the financing plan,” said Steffens.
Steffens explained, “The money would not have been available to Boulder’s until the project is completed, does everyone understand that?” The answer was yes.
Construction on the 1.4-million-dollar, 32-bed facility began in October.