City of Manhattan release
The City Commission recently voted to approve a resolution determining it is advisable to issue Industrial Revenue Bonds (IRBs) for the Wareham Hall project and authorizing an economic development agreement with Wareham Hall Ventures, LLC for IRB property tax abatement.
Wareham Hall Ventures requested an amendment of Resolution No. 120523-A, which previously authorized a sales exemption for the project.
This amendment increases the project budget from $25 million to $40 million, changes the developer from the Wareham Hall Renovation Fund to the newly created Wareham Hall Ventures, and authorizes a property tax exemption.
Wareham Hall applied for the property tax abatement through the City’s IRB Policy. It is requesting a 10-year, performance-based property tax abatement (up to 100%) for the project. Performance metrics include minimum financial investment, number of ticketed patrons, and the percent of non-local patrons.
IRBs issued for sales tax exemption have no financial risk to the City. Local taxing entities will receive no taxes from the property for the next 10 years if Wareham Hall meets its metrics.
Wareham Hall also must make public infrastructure improvements to City sidewalks, streets, alleys, and other infrastructure to facilitate the project. The developer has asked for a $350,000 cash incentive to pay for these public improvements, which will be taken from a fund to be determined by the City Commission. A public infrastructure development agreement with the developer will be considered at a future City Commission meeting.