Tax allocation district could help hotel near Augusta Convention Center

Tuesday, March 5, 2013 3:40 PM
Last updated 9:21 PM
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With the Augusta Convention Center complete, a long-discussed Hyatt hotel on Reynolds Street could be gaining momentum with potential tax incentives to move the project forward.

Developer Cortland Dusseau and an out-of-town investor visited Augusta on Monday to meet with the Downtown Development Authority and tour the proposed project’s site bordering the west side of Augusta Common.

DDA Executive Director Margaret Woodard declined to name the investor, but she said she’s working on a tax allocation district to help advance the plan after years of financing delays.

An eight-story, 139-room Hyatt Place has been delayed since 2010 when Dusseau, of Alabama-based Augusta Commons Hospitality LLC, formerly Legacy Hospitality LLC, ran into financing troubles.

Dusseau said he hasn’t given up hope for the Augusta hotel and works on the project every day. He doesn’t know when he will secure a bank loan or start construction.

“The TEE Center is open now. We’ll see if that’s going to help or speed things up,” he said. “I’ve been at it so long now I don’t want to make predictions anymore.”

Woodard said a few interested parties have asked about the hotel site since the beginning of the year. The convention center’s opening wasn’t discussed at Monday’s meeting, but she thinks that could have led to renewed interest.

“From any investor’s point of view, that’s going to help to see a finished project,” Woodard said.

A tax allocation district was created in November to help hotelier T.R. Reddy move forward with a $6 million project to renovate the old Regency Inn on lower Broad Street into a Holiday Inn Express and Suites.

Woodard said there is a need for both hotels as upcoming conventions are expected to bring thousands of visitors to the city.

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CobaltGeorge
165955
Points
CobaltGeorge 03/05/13 - 04:47 pm
3
0
All I Can Say Is

better read the fine print between the lines......

Little Lamb
47281
Points
Little Lamb 03/05/13 - 05:07 pm
4
0
Financial Difficulty

From the story:

. . . Dusseau, of Alabama-based Augusta Commons Hospitality LLC . . . ran into financing troubles.

I move that Augusta officials deal only with financially sound developers who do not need tax incentives. These tax incentives going to the developers keep taxes high for the rest of us.

countyman
20729
Points
countyman 03/05/13 - 06:42 pm
2
2
TEE Center will attract private investment!

I think the city should offer as many tax incentives as possible when it comes to large construction projects.

Hopefully this project can happen, because of the Sprint Food & Metro Market project on the other side of the Augusta Common.

Riverman1
87571
Points
Riverman1 03/05/13 - 08:18 pm
3
1
TR Reddy built the Holiday

TR Reddy built the Holiday Inn using the special tax incentives and will get rid of it soon as he can. I'm sure Dusseau is watching. What's really happening is the entire county is providing tax incentives for the downtown area. More of the same.

corgimom
34731
Points
corgimom 03/06/13 - 01:51 am
2
3
When things are so bad in

When things are so bad in Augusta that long-established restaurants are going out of business, and a well-known restaurant like French Market Grille is struggling, why would anybody in their right mind build a hotel? When a bank won't provide financing, that says the whole story, right there.

You notice that it's an out-of-town investor, nobody in Augusta will touch it.

soapy_725
43817
Points
soapy_725 03/06/13 - 10:27 am
0
0
Tax and spend, tax and spend
Unpublished

the cancer from Washington is spreading to the CSRA. No need tocry for or worry about those that are laid off from their jobs. Heck, they can just go out and buy new houses, new cars, run up all of their credit cards and spend themselves out of debt.

Expected thousands of visitors. Will the attendees at the Border Bash or the Fire Works Show being staying overnight?

Wait a minute. Those expected thousands are for "The Committee to elect Deke Coperhaver for President 2016 Convention. And not a minute to soon. Deke will rule with a "wet noodle".

countyman
20729
Points
countyman 03/06/13 - 12:36 pm
1
0
Long established restaurants

We both know the posters on here don't have any clue what Mr. Reddy is planning on doing in the future. The county provides tax incentives for businesses all over the county. Similar to the leaders of Columbia County giving out tax incentives for the Bojangles and Zaxbys in Martinez.

Long established restaurants go out of business all the time. This is not metro Atlanta, and the majority of investors have to come from out of town.

The Holiday Inn Express, Home 2 Suites by Hilton, and Hampton Inn are all under construction. The Residence Inn by Marriott begins this year, and the only hold up on the Hyatt Place is the large price tag($25 million. The Sheraton in West Augusta only took around $20 million to complete.

Riverman1
87571
Points
Riverman1 03/06/13 - 04:13 pm
0
1
"Holiday Inn Express"

Countyman, a special tax incentive district was approved for Reddy to help with the costs, thanks to Jerry Brigham. Reddy is in some kind of arrangement with McKnight Construction to get the building constructed. By the way, there is a long way to go between Reddy saying he was building a Holiday Inn Express and actually purchasing the franchise and meeting the specs for the Holiday Inn Express. Has anyone seen proof he has paid the franchise fee and met their requirements with the building? I think NOT.

I suspect Reddy no more wants to own and operate a hotel on Broad Street than Costco wants to open a second location at Regency Mall! I believe Reddy is just trying stir up some interest in the project hoping to better be able to find a buyer. He hasn't had any luck so far and he has been showing it around to everyone from what I'm told to no avail. We should be able to tell who is right about this venture soon enough.

countyman
20729
Points
countyman 03/06/13 - 04:32 pm
1
0
The Holiday Inn Express deal

The Holiday Inn Express deal is complete, and the groundbreaking was already held.

Riverman1
87571
Points
Riverman1 03/06/13 - 05:08 pm
0
0
Let's Have the Chronicle Ask Him

Why not have the Chronicle ask him if he has a franchise agreement? It may end up a Motel 6 for all that's known.

countyman
20729
Points
countyman 03/06/13 - 05:12 pm
1
0
Holiday Inn Express

Nobody can begin construction on a 'Holiday Inn Express' without completing all of the requirements. I mention before the groundbreaking was already held downtown.

The lowest brand name hotel underway is the Hampton Inn(Hilton brand) in South Augusta, and it's a multimillion investment.

Riverman1
87571
Points
Riverman1 03/06/13 - 05:51 pm
0
0
Lots of construction at the

Lots of construction at the Gordon Hwy-Bobby Jones interchange. I don't think any of the hotels had a special tax district advantage either.

About your statement that they couldn't use the Holiday Inn name unless it had been finalized, I'd like to see the proof of that. I believe Reddy has been saying since the very beginning it was going to be a Holiday Inn and I'm sure that hasn't always been the case. All I'm asking is for the Chronicle to ask Reddy if he has a Holiday Inn franchise agreement in hand.

countyman
20729
Points
countyman 03/06/13 - 06:24 pm
1
0
The construction at the Bobby

The construction at the Bobby Jones interchange is related to the $30 million I-520 expansion... The only hotel under construction in the area is the Hampton Inn.

I'll repeat the Holiday Inn Express broke ground a couple of days ago.

AutumnLeaves
8613
Points
AutumnLeaves 03/14/13 - 02:13 pm
0
0
While traveling, I discovered

While traveling, I discovered the Hampton Inns that our family stayed in were much better than other places rated higher and lower.

Dsleeth
2
Points
Dsleeth 03/22/13 - 03:30 pm
0
0
TAD Clarification

For those of you who may not know, I just want to clarify what TAD (Tax Advantage District) means. This is a geographic area, such as several blocks, in which anybody starts a new business will receive a rebate of sales tax of $.01, not necessarily only to Mr. Reddy. The Hyatt Hotel if built on Reynolds Street will also be eligible for the rebate.

So when a new business starts in this area, it is adding revenue to the City, the only difference is they will be paying $.06 Sales Tax instead of $.07 Sales Tax. However, in the case of a Motel, they will pay $.13 Sales Tax instead of $.14 Sales Tax.

So Mr. Reddy taking a vacant building, and making it usable as a Holiday Inn Express, adds to the revenue of the City and the State. He is not receiving any or using any taxpayer dollars.

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