Boulders Development agreement rescinded by Atlantic CC
May 5th, 2011 by Ric Hanson
The Atlantic City Council Wednesday evening approved an order to rescind a resolution approving an expired development agreement and tax increment financing with Boulders Inn and Suites. City Administrator Doug Harris says the council agreed to back away from the agreement because Boulders’ officials didn’t make good on their promise to the City.
He says they didn’t meet the requirement of getting the property on the tax roles by January 1st and certification of that agreement, along with the minimum assessment that would be placed on the property. A required landscaping plan was also not signed by company officials. City Attorney Dave Wiedersteen recommend the agreement be rescinded and a new contract drafted.
Harris said there are some new “wrinkes or considerations” that must considered before any agreement is signed by both parties. He says there are proposals for commercial/industrial tax rollbacks which would affect the tax flow on the projects and the City’s ability to fund them.
Last May, the Atlantic City Council approved a package which included $125,000 in an up-front incentive payment (upon completion of the building), and $100,00 in tax rebates…$25,000 per year, for a period of 4-years, for the 1.5-million dollar, 32-room, four-suit hotel. Construction began last Fall. The hotel was expected to be completed and open for business this month.
In other business, the Council passed a resolution setting the date for a public hearing on an amendment to the Fiscal Year 2011 Budget, for May 18th, and, on a five-to one-vote, they approved their consent agenda which included a resolution authorizing bids for the 2011 Parks Improvement, Hot Melt Asphalt (HMA) and Portland Cement Concrete (or, PCC) paving and storm sewer improvement projects.
The opening date for bids was also set for May 18th.