A new 62-room hotel is proposed for Stoneybrooke subdivision near Applebee’s in south Chillicothe and the developer has applied for a temporary property tax abatement. Ehrhardt’s Chillicothe Redevelopment Corporation has applied for a 353 tax exemption, which means that property taxes would be abated for a certain amount of time yet to be determined. Because of the application, the state mandates that all interested taxing entities be notified and that a public hearing be held. That hearing is scheduled for 7 p.m. on Monday, Dec. 29, at Chillicothe City Hall.

Notices have been posted specifically for Chillicothe Township, Road and Bridge, Livingston R-2 School District, Livingston County Nursing Home District, Livingston County Library, Livingston County Health Unit, Livingston County Ambulance District, Livingston County Developmentally Disabled, and the City of Chillicothe. These taxing entities, as well as all members of the public, are invited to attend the hearing and provide comments, and submit comments to the city council prior to the date of the hearing.

A 353 tax exemption is an exemption of property tax for a piece of property that has been defined as blighted. The application qualifies because this area is part of a tract of land which was defined as blighted when it was approved for tax increment financing (TIF), according to City Attorney Adam Warren. The property tax on this piece of land is minimal and wouldn't change much if left alone, Warren said. Yet, if the project of approved and a hotel is built, once the 353 tax exemption status expires, the full property tax, which would be assessed at its developed condition, would be paid to the city. A 353 tax abatement was used for the redevelopment of the Strand Apartments.

The Chillicothe City Council has the authority to grant or deny the 353 tax abatement application and the public hearing provides a good opportunity for the city officials to hear public opinion about the application, Warren said. Because the proposed hotel would be located in the existing TIF district, a percentage of its sales taxes it would collect would be used to help pay off the bonds which were issues to develop the TID district, rather than go into city coffers. The TIF district already includes a bank, restaurant, and retail store.