Steamboat Springs Hayden officials gave a proposed hotel project on the west side of town their five-star rating and are prepared to offer tax breaks.
Hayden Town Council member Bill Hayden said the council voted, 4-0, in favor of the economic incentive package application during its Thursday meeting. Council members Jim Haskins, Lorraine Johnson and Tim Redmond were absent.
“It’s the right thing to do,” Hayden said. “If we want to have people invest in the community, we need to offer help. It costs the town nothing.”
Hayden said about 10 members of the public attended the meeting and all were supportive of the project by the end.
The Hayden developers, brothers Louis and Stefanus Nijsten, have been considering building a hotel since 2009. They said tax breaks are needed if they are going to find a bank or private lender to finance the project.
“We do have some serious interest from banks and investors, and this will help in those conversations,” Stefanus Nijsten said.
For the first five years of operation, the developers are asking for a percentage of property taxes that otherwise would go to the town. For at least seven years, the developers are asking that a percentage of sales and lodging taxes collected by the hotel be rebated. The rebate would be from zero to 95 percent depending on occupancy rates at the hotel.
The developers have argued that the town has nothing to lose by rebating tax dollars it otherwise would not be receiving anyway.
“Basically, as developers, we’re taking all the risk,” Nijsten said.
Nijsten said it was good of the town to develop an economic incentive program, and with its reception to the first application, the town has a promising future.
Even with the rebates, the developers think the hotel directly and indirectly will generate more than $60,000 in taxes for the town by the third year.
The proposed 46-room, Best Western-branded hotel would be on the west end of Hayden in the Creek View Subdivision at Fifth Street and U.S. Highway 40. The developers said it would employ 10 full-time employees who would earn an average annual wage of $25,533.
Nijsten said once they get their financing secured, they will enter the approval process for the hotel.
Nijsten said they hope to begin building the $3 million project this summer.
To reach Matt Stensland, call 970-871-4247 or email mstensland@SteamboatToday.com