Waynesboro City Council agreed Monday to allow for the partial closure of Chicurel Lane so a hotel can be built.
Chicurel Lane is located off Windigrove Road between Comfort Inn and Plaza Azteca with only one business on it.
“[KM Hotels LCC] essentially own all but one property on Chicurel Lane at this time,” said Deputy City Manager James Shaw at Monday’s city council meeting.
The city will enter an economic development performance agreement with KM Hotels LLC to finance the construction of Chicurel Lane, Shaw said. A medium-price, 90-room hotel will also be developed on the property as part of the plan, according to the agreement.
KM Hotels LCC, in accordance with the performance agreement, will construct the hotel “as quickly as commercially possible,” and will construct Chicurel Lane to the standards and specifications set by Waynesboro, Shaw said. The completion date for the hotel is Jan. 1, 2022, he said.
“As road design and hotel site design have progressed, the city staff, developer and our respective design engineers have concluded that the project could be greatly simplified if the developer takes on road construction project, presumably through a single contractor working on both the road project and hotel site,” Shaw said.
According to the agreement, Waynesboro will “reimburse KM Hotels for the road construction cost up to $350,000 through a tax increment financing program” relating to real estate taxes.
“In other words, a rebate of real estate taxes above whatever the current tax value is,” Shaw said. “Whatever that increment of increase would be used to finance that road project.”
A benefit of the project, Shaw said, is that the road construction will provide more access to surrounding destinations such as Wendy’s, the Silk Road restaurant and Days Inn.