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City Council OKs Tax Abatement for AmericInn

Hoping it will enhance the development of Glencoe’s tax base, the city council approved a business subsidy plan designed to make it easier for AmericInn to build a $7 million hotel next year.
The council unanimously approved Monday, Dec. 3, a 15-year tax abatement the Economic Development Commission (EDC) recommended Nov. 28. The abatement is for $43,808.50 a year for 15 years, an amount capped based on the value of the hotel in its first year. That amount is the city’s portion of the $117,146 McLeod County estimates the hotel will generate in property taxes annually if built. Mayor Randy Wilson stressed to the council the proposal is not asking the council to take $657,127.50 from the city’s general fund, but rather to abate money Glencoe would not otherwise receive.
The proposed $7 million hotel will include 59 rooms and an indoor pool. It will be built east of Harpel Bros. auto dealership and the proposed Kwik Trip, along Eagle Avenue, between Highway 212 and East 11th Street.
To advance the project, developer Apollo Development of Minnetonka needs to complete raising 40 percent of its cost in private investment. The city’s tax abatement reduces that investment from $2.8 million to just over $2.14 million.
David Harchanko of Apollo Development told the council he has some, but not all, of the investors lined up.

(For the complete story, see the Dec. 5 print edition of The Chronicle.)