Hotel developer seeks tax break from town
A Westport-based company is seeking tax incentives to construct a Marriot hotel in the new Rosebrook Place development in West Wareham.
Richard LaFrance of the LaFrance Hospitality Corp. appeared before Selectmen on Tuesday, Feb. 12, to propose a Tax Incentive Financing (TIF) agreement between the company and the town to construct a "TownPlace Suites" hotel in the development being planned by the A.D. Makepeace Company.
If all goes according to plan, the hotel will open in the summer of 2014. The Selectmen did not take action on the proposed agreement on Tuesday.
In addition to the hotel, a pharmacy, bank, locally- or regionally-based restaurant, and retail space is proposed for Rosebook Place, which A.D. Makepeace plans to build on Route 28 in its Rosebrook Business Park, which currently features a medical office building.
Details of the proposed TIF agreement were not provided. But LaFrance, aided by Wareham Community and Economic Development Authority Director Salvador Pina and Makepeace CEO Michael Hogan, talked about the hotel plans and provided photographs of similar facilities elsewhere.
“Our goal is to have a draft agreement before you by March 15,” said Pina.
LaFrance Hospitality is based in Westport and operates hotels from New Hampshire to Florida. However, LaFrance says the South Coast of Massachusetts is home.
“We’re committed to the area. We’ve been doing business here for over 50 years,” he said. “We’re not here to demand anything. We’re here to work with the town.”
LaFrance would lease the 4-acre site from A.D. Makepeace.
“I believe this will be a true asset to the region’s tourism industry, as well as an attraction for other businesses,” Hogan said, displaying photos of similar facilities. “Furthermore, having an experienced regional operator undertaking the project will be an asset.”
According to LaFrance, the 50,000-square-foot hotel would be four stories tall and have 90 rooms. There would be an adjacent 300-seat function hall.
The developers say 50 permanent full-time and part-time jobs would be created, in addition to 30-40 temporary construction jobs.
Pina and the developers said the exact amount of revenue to be generated by property taxes cannot be determined before a TIF agreement is negotiated. However, they estimated that Wareham will see an estimated annual increase of $138,000 in room and meals tax revenue.
The projected tax revenue over 15 years is “approaching $4 million,” according to a proposal presented to Selectmen.
LaFrance said the slumping economy has hurt the hospitality industry. If the company is able to obtain tax incentives, he said, it will increase the chances of a successful launch.
“The hotel business … from a financing standpoint, it’s not easy to finance,” said LaFrance. “The TIF is a very important part of the project. Probably the one thing that makes it feasible to do.”