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Economy hotel planned near Salamanca casino

An economy hotel could be part of the winter landscape seen by I-86 travelers and patrons of the Seneca Allegany Casino in Salamanca.

The Cattaraugus County Industrial Development Agency took preliminary steps Tuesday for a sale-leaseback transaction to assist in the development of a 59-room Microtel Inn & Suites, expected to cost between $2 million and $3 million.

Brian and Julie Hebden of Springville, owners of the Mountain View Motel at 888 Broad St. in Salamanca, told the IDA board about their plans to demolish their motel in September and develop a three-story wood-frame Microtel, beginning in October.

"It will bring in businesses," said Brian Hebden, noting the hotel will attract groups that are visiting and serve the casino and the Salamanca community.

He said the couple recently received a draft of an independent marketing study they commissioned stating that the outlook for the hotel is "positive" and should be "a very good fit" with its location near the casino.

Currently, the motel employs four full-time and two part-time people. In the first year as a Microtel, the business will employ seven full time and eight part time and grow to nine full-time and 10 part-time employees in the second year.

The Mountain View is in the village of Salamanca on Seneca Nation land and is fully taxed. But the operation would receive full property tax exemption for 10 years and a graduated abatement for the next five years under the IDA's 15-year tourism project policy.

"We enacted that policy to get that help for these tourism projects," said IDA Executive Director Norm Leyh.

The Hebdens, who are in the process of forming a corporation to run the Microtel franchise, are also seeking IDA assistance with sales tax and mortgage recording tax.

The board, meeting in Ellicottville, unanimously authorized a coordinated environmental review and a public hearing on the proposal.

In other business, the board:

* Received an update on negotiations with the City of Olean for sale of Olean Industrial Park land to keep a small playground open. The city is scheduled to discuss the purchase in a committee session later Tuesday.
* Finalized the Win-Sum Ski Corp. sale-leaseback financing of a $2.6 million renovation of the Inn at Holiday Valley and purchase and installation of items for Holiday Valley, including snowmobiles, chairlift and groomer.

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