Change of plan: Bosselman Enterprises no longer builds a new hotel at the old Skagway site on South Locust | Grand Island Local News
However, the amount of additional fiscal financing that will be generated by the project will be significantly lower than that of a hotel under construction.
“The change goes from a roughly $ 8 million hotel to a $ 500,000 quick-service restaurant,” Nabity said.
Approximately $ 4.1 million in TIF will be required to complete the project.
The project still has over $ 8.57 million in eligible expenses for FIT.
The developer will be responsible for funding the additional $ 4.48 million.
The property itself was purchased for $ 1.7 million.
Although the plan has been changed, the contract with the planning commission and the amount of the FIT have not been changed, although the project is no longer “paying”.
A $ 6.55 million TIF bond issue is expected to bring in only $ 4.1 million based on the revised plan.
“The main activity of (TIF) was the renovation of the old Skagway building,” said Nabity. “They’ve already spent those dollars. The project itself will not generate enough income to pay them back in full. “
The amendment was approved by a 5 to 4 vote.
Commissioners Tyler Doane, Robin Hendricksen, Leslie Ruge, Pat O’Neil and Darrell Nelson voted in favor; Tony Randone, Hector Rubio, Leonard Rainforth and Nick Olson voted against the change.