A four-story, 72-room Hampton Inn will be constructed just off the northbound Interstate 190 exit at Niagara Falls Boulevard in Niagara Falls, after the Niagara County Industrial Development Agency approved a tax break Wednesday.
The $6.2 million, 45,000-square-foot hotel will be owned by local hotelier Ramesh Patel under the entity Falls Hotel LLC.
The project received a 10-year payment-in-lieu-of-taxes arrangement that includes an exemption from paying sales tax on materials used to build or furnish the hotel.
Those breaks will save Patel $1.32 million, the IDA staff estimated.
Construction is expected to start next month. The hotel is expected to create the equivalent of 18 full-time jobs with an estimated payroll of $350,000 a year.
In other matters, the agency:
*Learned that the Kissling Interests, operating as Remington Lofts on the Canal, is taking out a $6 million loan from First Niagara Funding to finish renovating the former Remington Rand plant on Sweeney Street in North Tonawanda.
The estimated cost of erecting the project has risen to $20 million from $14 million, according to a letter to the agency from John L. Blair, Kissling's attorney.
The project involves creating 81 work-live lofts aimed at young entrepreneurs, plus a ground floor restaurant.
*Approved a land deal with the Niagara Frontier Transportation Authority that will clear the way for a 250-space expansion of the parking lot at Niagara Falls International Airport.
Two business operations -- Niagara Industrial Suites and Rainbow Industrial Center -- are located on agency-owned land bordering the airport.
The agency will return a piece of land it now leases from the NFTA, which also will lease a small chunk of the agency's property, said Mark J. Gabriele, the agency's counsel.
"Right now, none of our tenants use that land," he said.
The agency and the NFTA are 50-50 partners in Niagara Industrial Incubator Associates, which owns a two-thirds interest in Rainbow Industrial Center. A private group called Niagara-Wheatfield Investors owns the remainder.
The agency learned that the investors are being paid a $100,000 capital distribution from the center's profits last year, which totaled $181,484. The agency and the NFTA will split two-thirds of the $100,000.
Also, $50,000 is being set aside in a capital reserve fund to begin to pay for a planned $300,000 maintenance project at the building.
*Approved a one-year extension of a sales tax exemption for Impressive Development of North Tonawanda, which has encountered construction delays on a 6,500-square-foot building next to its Division Street headquarters.
Robert Albert, company president, said the first tenant should move in by Nov. 1. The agency had granted Impressive a 10-year property tax break a year ago.
*Granted Wheatfield Family Dentistry a six-month extension to start drawing benefits on its planned new building on Niagara Falls Boulevard, which also received a 10-year property tax break last year.
Construction tentatively is scheduled to begin in late October, with the new office to open next spring.