Oct. 09–CLAREMORE —
The Claremore City Council voted Monday to approve a Tax Increment Financing District to provide $675,000 in incentives to bring a Holiday Inn Express & Suites hotel and conference center to Claremore.
Developer Pete Patel dedicated the site in August, located at 1400 W. Country Club Lane near Wal-Mart.
The facility is expected to be 5,000 to 6,000 square feet and will host weddings, business meetings, reunions, holiday parties and more.
“It is my privilege to present this ordinance to the council,” Attorney Dan McMahan said.
There has been a good discussion by the TIF review committee and two public hearings, according to McMahan.
The statutory requirements have been met in the process, he said.
The council’s approval creates the third TIF district in the city in the past year and dedicates tax incentives to the project upon completion of the construction.
It is expected to take 9 to 11 months to complete.
This TIF is different from previous TIF’s created in the city and includes a section of lodging tax and sales tax revenues, according to McMahan.
The TIF will be paid off in 10 years and will assist Promise Hotels with financing the 80-room hotel and adjacent convention center.
Because the TIF is structured differently than other projects, the risk is different.
If there is a loss in revenue, the lender is obligated to take the loss, according to McMahan.
“We believe the revenue stream here is good,” McMahan said.
We hope to show a new revenue stream that will exceed the payment on the TIF and we believe this project is strong enough to do it, he said.
“I believe this is a great project for the city,” City Manager Jim Thomas said.
Thomas said he believes the city will see spin off from this new development.
Patel owns the Comfort Inn in Claremore and has been a business owner in the Claremore community for the past five years.
