Tuesday, December 3, 2024–8:45 a.m.
-Mo Burge, Rome News-Tribune-
This story is possible because of a news-sharing agreement with the Rome News-Tribune. More information can be found at northwestgeorgianews.com
A $2 million Tax Allocation District rebate application by a Tennessee-based developer planning to build an upscale hotel in the Five Points district may have to move forward without Floyd County Commission support.
During Monday’s Rome-Floyd County Redevelopment Agency meeting, County Manager Jamie McCord said the county’s position is that, while the hotel may be the “highest and best use” for the property, it doesn’t align with the County Commission’s TAD guidelines, which were updated in 2020.
“I’m struggling with this a little bit,” McCord said. “It does not fit into our general policy. It’s just not fitting our guidelines.”
Sam Patel said his company — which owns the Hampton Inn & Suites on Turner McCall Boulevard — is applying to defray the cost of building a 100-plus-room Home2 Suites at 1024 Martin Luther King Jr. Blvd. Under TAD financing, increased taxes from improvements to the site would be funneled back into the project for a set period of time.
McCord was the lone dissenter on the agency’s majority vote to recommend approval to the city and county commissions. He added the caveat that he acknowledges there is a need for more hotel/motel options to draw in more events, but he feels the county has been left out of the process.
McCord also said he was struggling to see a benefit for the county since 100% of the potential hotel/motel tax would go to the city, and there appears to be some financial liability given the number of TADs already approved.
“It’s more about the process,” McCord said. “It seems like we’ve got a lot of TADs out there.”
Additionally, he said there are potential traffic pattern concerns given the likelihood of increased activity in the area.
City Manager Sammy Rich did not specify a time or date when the item would be placed on the agendas for the city and county. But he said the hope is to get the recommendation to both boards before the end of the year.
Rich said the city’s concept of the TAD is set up to be a conservative approach that works as a “pay-as-you-go” rebate — whatever the project doesn’t generate in revenues, they have to pay back.
He said if the county commission chooses not to approve the application, the project can still move forward with approval from the city commission.
The project could not, however, move forward without a rebate to help with the cost of mitigation work, abatement, and demolition on the site, Patel said.
He said the TAD is critical to paying for preliminary work that isn’t included in the overall budget for the project and without the rebate it could be difficult to move forward.
“If we get the TAD approved, we’ll be ready to put shovels to the ground,” Patel said at the meeting.
Rome Office of Tourism Executive Director Lisa Smith said the proposed hotel addresses a specific need and she is hoping to see this and more lodging amenities.
She said it would address a growing problem of a shortfall in options for bidding on future events to bring to the area.
City Commissioner Wayne Robinson said the project is good for the community.
“It’s a no-brainer,” Robinson said.