Niagara Gazette — "My father's dream has been to put a Marriott hotel in the city of Niagara Falls," Nirel Patel said.
Indian Ocean, LLC has requested an enhanced commercial payment-in-lieu-of-taxes agreement through the NCIDA. The deal, if approved by the board, would provide the hotel's owners with property tax exemptions for the existing assessment and improvements based on standard commercial PILOT at an estimated value of $760,000. Sales tax exemptions on construction and building furnishings would be offered as well at an estimated savings to the owner of $340,000.
NCIDA officials estimate that the owners would pay $164,000 in real property taxes by the end of the proposed PILOT. With the value of the jobs to be created, annual value of "indirect and induced jobs created," sales tax to be generated and an estimated $2 million in "economic activity" at the site, the return to the community will be roughly $3.37 million, according to the agency.
The Patel family also has requested a two-year tax-free period for the property which would be available under the NCIDA's Opportunity Zone Program. Businesses located in Opportunity Zones within the county's three cities are eligible for additional tax breaks and other incentives. If the request is granted, the family would be allowed to open and operate the hotel during the two-year period without paying any property taxes or reduced PILOT payments.
NCIDA attorney Mark Gabriele said the package, if approved by the board, would be put in place in advance of an enhanced five-year PILOT, which would kick in at the end of the two-year Opportunity Zone arrangement.
Nirel Patel suggested, due to the high standards involved in operating a hotel within the Marriot chain, the initial costs will be substantial and profits minimal during the hotel's start-up phase. He noted that the property will be owned by his family, but managed by Marriott as is the company's standard.