City Councillors unanimously approved a tax incremental financing (TIF) agreement with XSS Hotels that would help them enter into an ownership partnership with the Wyndham Hotel – a partnership that would be for the purpose of renovating the 15-year-old hotel.
The renovations are said to be just short of $10 million.
The Council voted 9-0, with two absent, to approve the recommendation by City Manager Tom Ambrosino for a five-year TIF.
XSS Hotels operates several hotels in Chelsea already, including the Residence Inn and TownPlace Suites. They would enter into a partnership with WEDGE Group of Texas, which currently owns the hotel.
“In a way, this is a landmark event because Wyndham was the first hotel here,” said Councillor Dan Cortell. “It’s the one we had to beg to give us a chance to build a hotel of this size…This is a full-circle event where the Wyndham is going to renovate to remain competitive. As our foundation hotel that was here when no other hotel was here, I support this.”
Councillor Giovanni Recupero said he supports the measure because it retains jobs.
“The jobs for the people there are going to be kept,” he said. “That’s the only reason why I vote fore it because it stays here and keep the people in their jobs. That’s very important.”
Said Councillor Calvin Brown, “It’s a good plan and a good move for the City of Chelsea.”
The plan would be for five years and would offer up to 60 percent relief in the first year from property taxes and personal property taxes. By the fifth year, it would trail down to 30 percent relief.
Ambrosino said the total new tax dollars to the City during the TIF would still be substantial, even with the discount. That figure was $243,307 in new taxes during the TIF as a result of the renovations.
The renovations would require a complete closure of the hotel between November and March.
In that time, Thomas wrote that current Wyndham employees would be offered employment at other area hotels in its network. Transportation would be provided to those employees if the new job is outside of Chelsea.