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Northpoint Hospitality Group, $2 million
Owners of an undeveloped Midtown parking lot will get a $2 million break on future property taxes so Hilton can build a hotel there.
The Atlanta Development Authority signed off the deal last week, authorizing issuance of up to $44 million in lease/purchase bonds, allowing Hilton to build a 226-room Garden Inn/Homewood Suites at 10th and Williams streets.
Under the deal, announced Friday, property owners will get a 50 percent tax abatement once the project is completed. The discount will decline by 5 percentage points a year until, in year 11, the project is paying its full property tax bill.
The property owner, NP 10th Street LLC, is an affiliate of Northpoint Hospitality Group.
On average, the project will pay about $600,000 annually in taxes over the 10 years of the agreement, officials said. Last year, the landowner paid $43,000 in property taxes.
Officials projected the hotel would employ about 100 people, while construction would generate more than 200 jobs.
This is the second Hilton Garden Inn project for the ADA. The first, adjacent to the Georgia Aquarium, received gap financing from the city’s Westside Tax Allocation District in 2008. Other hotels projects competed with the help of ADA include The Ellis (formerly Winecoff Hotel), Glenn Hotel, W at 45 Ivan Allen Plaza, TWELVE Centennial Park and TWELVE Atlantic Station.