County in support of motel tax incentives

Washington County commissioners said they would support tax incentives for a new motel in Weiser if the project becomes a reality.

 Commissioners backed that up by agreeing to write a letter that could be given to potential investors in a motel development. 

 That was good news for Patrick Nauman, who co-chairs the Weiser economic task force and met with commissioners to discuss tax incentives.

 The task force is waiting for the results of a motel feasibility study that Core Distinction Group of Arizona is expected to complete within a couple of weeks.  

 Commissioner Nate Marvin said one concern he had with offering tax incentives for a new motel was how the existing motels might be impacted. 

 He asked Nauman if the other motels had been contacted about the feasibility study.

 Nauman said he talked to the owners of the three motels in town. They mentioned a study done years ago that concluded another motel was not needed in Weiser.

 Nauman said the previous motel study was driven by the idea that Weiser would be a vacation destination, a concept that didn’t work. 

 He said Weiser could support a new motel as a travel-through community. 

 “It is my belief that it will support a motel as a travel-through community. There is enough business and industry in the area to support it during the week,” he said. “The travel-through type of economic drivers that will happen through the weekends will just be icing on the cake.”

 During the discussion on possible tax incentives, it was mentioned that some of the existing motels are renting out rooms for long-term use and those rooms are not available for visitors or travelers. 

 The community sees economic leakage when visitors can’t stay in Weiser and go to Ontario.

 One example cited at the commission meeting took place a few months ago when all the cooperative extension educators in the state were in Weiser for a convention hosted by the local extension office. The visitors ended up booking rooms at motels in Ontario because there were not enough local rooms.

 Marvin said the Vendome Events Center is underutilized for conventions because there is no place for people from out of the area to stay. It was also noted that a new motel with amenities could get people to stop in Weiser and that would have economic benefits.

 The last time the county offered tax breaks was in May of 2017, when ag processor Intrinsic Organics broke ground on a plant at the Weiser Industrial Park. Following a public hearing on the tax abatements, the county agreed to give the company 100 percent tax break on improvements and equipment for three years and 50 percent for the following two years.

 Idaho law allows counties to waive all or part of the taxes on a new business project or expansion that meets the investment threshold for up to five years. The state law until July of 2018 required at least a $3 million investment by companies for tax breaks from counties, but that amount dropped to $500,000. 

 “I personally feel very comfortable if we offered a motel the same tax breaks as Intrinsic Organics. I think we have an opportunity here,” commissioner Tom Anderson said.

 Commissioners said the tax breaks are available to any new or existing business that meets the criteria. 

 Once the feasibility study is done, the next step will be to find investors in the project. An LLC made up of local investors who would own the hotel would be the preferable way to finance the project, Nauman said.

 The feasibility study also will have the details on what the total buildout cost might be.