The Cobb County Board of Commissioners will vote on development incentives for a $76.2 million hotel beside the Cobb Energy Performing Arts Center at its regular meeting in Marietta on Tuesday.
The incentives package recommended by county staff, for approval by commissioners, is worth $353,281 in permit fee savings and also includes a flexible payment plan for sewer development fees.
County documents show the company NF IV-VA ATL Cumberland LLC, also known as Hilton Garden Inn & Home2 Suites by Hilton, plans to build a 260-room dual-branded hotel on an acre of land along Cobb Galleria Parkway beside the performing arts center, near the intersection of Interstates 75 and 285 in Cumberland.
The hotel would include about 5,600 square feet of event and meeting space, a restaurant and a public rooftop bar serving food.
Developers plan to buy the land for $6.2 million, spend about $63.5 million building the hotel, and furnish it with another $6.5 million.
If commissioners approve the incentive agreement, developers have to create 70 new jobs with the hotel over a decade and provide annual reports to the county documenting this, as part of the company’s eligibility to receive incentives.
In return, the county will cap the developer’s permit fee at $5,000, rather than charging the usual $6.25 per $1,000 of construction value, resulting in savings to the company of $353,281.
The county will also let developers pay the sewer development fee, estimated to be $193,285, in increments, starting with $64,429 due as a requirement of plan review. The company will be able to pay the remainder as part of its water and sewer bills in equal parts at $5,379 per month over the first two years of operation.
The incentive period, if approved, would start on Jan. 1 of the year following the issuance of the hotel’s occupancy certificate and remain in effect for ten years.
Commissioners approved the county’s Targeted Industry Incentive Program as part of the county’s official code in February 2018, so eligible developers could apply for and receive help in return for bringing certain business and economic growth to Cobb.
Commissioner Bob Ott said the application by Hilton Garden Inn & Home2 Suites by Hilton meets every aspect of the county code for incentives.
Ott tabled the incentives agreement on Aug. 26, the day before commissioners were due to vote on it during their Aug. 27 meeting, because he had some questions about parking on Cobb Galleria Parkway.
“That’s all been resolved and I plan on moving it forward tomorrow,” he told the MDJ Monday.
County documents show the hotel should have a net fiscal benefit to Cobb of $1.5 million over 10 years, based on analysis by Georgia Tech’s Enterprise Innovation Institute, which assesses the cost of providing services plus the benefits from the development.
Developers have to generate at least 25 jobs and a financial impact to the county of at least $250,000 to be eligible for county incentives.
The property on which the hotel is planned is owned by the Cobb-Marietta Coliseum & Exhibit Hall Authority, which also owns and operates CEPAC and the Cobb Galleria.
As a governmental entity, the Exhibit Hall Authority does not pay property taxes on the one acre tract where the hotel is planned.
In February, county commissioners approved a site plan amendment sought by the Cobb-Marietta Coliseum and Exhibit Hall Authority to make way for the hotel.
In May the Development Authority of Cobb County approved for the project $70 million in bonds and a tax abatement.