Frontier House developers seeking $600,000 in tax breaks | News | niagara-gazette.com

2022-07-30 00:30:23 By : Ms. Fancy Zhong

Partly cloudy skies. Low 62F. Winds WNW at 10 to 20 mph..

Partly cloudy skies. Low 62F. Winds WNW at 10 to 20 mph.

The developers of Lewiston's Frontier House are seeking more than $600,000 in tax break to support their $5 million improvement plan for the historic Center Street building. 

The project's developer, 4600 Group LLC, an affiliate of Ellicott Development, is seeking a 10-year payment-in-lieu-of-tax deal from the Niagara County Industrial Development Agency. They plan on turning the historic building into a mixed-use space with commercial uses on the first floor and 11 residential and rental units planned for the second, third, and fourth floors.

In their application to the county IDA, the developers say the project will draw upon and celebrate the building’s rich history with the intent to make it a destination sought by visitors from outside the area.

According to the paperwork, the $612,945 in tax exemptions have been requested, including $407,816 in property taxes, $165,436 in sales tax exemptions, made up of 50% for local sales tax and 50% state sales tax, and $39,693 in mortgage recording tax exemptions, made up of $13,231 in local mortgage recording tax exemptions.

According to the IDA, the project has a projected economic benefit of around $3.6 million, including $2.5 million in temporary payroll, $856,328 in ongoing payroll, $234,884 in local property tax revenue, $17,529 in local sales tax revenue from temporary jobs, and $5,994 in local sales tax revenue from ongoing jobs.

The projected state economic benefit for the project is $174,747, which includes $112,689 in temporary state income tax revenue, $38,535 in ongoing income tax revenue, $17,529 in state sales tax revenue from temporary jobs, and $5,994 in state sales tax revenue from ongoing jobs.

The listed combined cost-to-benefit ratio, $3.79 million in benefit to the $612,946 in tax exemptions, comes out to 6:1, according to IDA officials. 

The employment plan states that two jobs would be created for three years after project completion, which are in the management/administrative and maintenance categories and have an annual salary range of $36,000.

The project's total projected cost $5.29 million, of which $3.86 million is from construction and improvements, $800,000 is from the building’s acquisition, $536,458 is listed for soft costs, with the remaining $90,000 for furniture, fixtures and equipment.

Project funds include $3.96 million from bank financing and the remaining $1.32 million from equity.

Ellicott Development’s Director of Development Tom Fox previously told the Niagara Gazette that the redevelopment will make the building look like as it did during the 1800s, which includes removing some non-historic elements and making structural repairs. Depending on when the required documents get approved, construction work could start by either the end of summer or early fall for a late summer 2023 opening.

The building has been listed on the National Register for Historic Places since 1974 and has not had a tenant since a McDonald’s location inside it closed in 2004. Developers had to work with the state historic preservation office and the U.S. Park Service through the planning review process and for project approval.

The Frontier House was considered one of the finest hotels west of the Appalachian mountains when it opened in the 1820’s, also serving as a restaurant and stagecoach depot. Many famous names of the era were guests at the hotel.

On Monday, the Niagara County IDA held a public hearing, overseen by assistant director Andrea Klyczek, at Lewiston Village Hall to solicit any public comments. None were made. Lewiston Mayor Anne Welch said the village is in favor of this project as it would help restore the historic building.

The IDA will vote on 4600 Group LLC’s application for financial assistance at its next meeting, which is planned for 9 a.m. on Aug. 10 at 6311 Inducon Corporate Drive, Sanborn.

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