Rusk approves tax abatements for hotel
June 12, 2017 at 11:32 p.m.
HENDERSON — A hotel company converting a shuttered Best Western into a Motel 6 in Henderson will not have to pay Rusk County property taxes on capital improvements for two years and will receive major tax breaks for the next three years.
The Rusk County Commissioners Court voted unanimously Monday to create a reinvestment zone as an incentive to JSCV Lodging LLC, which plans to open Motel 6 in two weeks at 1500 U.S. 259 S.
The incentive package, which starts in January, will be a 100 percent tax abatement for the first two years, 75 percent for the third and fourth years, and 50 percent for the fifth.
"It gives them a little help on their taxes until they get their business up and running," Pct. 2 Commissioner Tammy Pepper said after a brief public hearing that preceded the court's formal vote.
Pct. 1 Commissioner Bill Hale and Pct. 4 Commissioner Harold Howell were absent.
The agreement with JSCV requires the hotelier to invest at least $1.8 million in capital improvements.
Chase Sharp, managing partner with JSCV Lodging, said the company invested that amount in buying the 77-room hotel and remodeling it.
The agreement also requires JSCV Lodging to create six full-time jobs. Sharp, who lives in Henderson, said Motel 6 will have four part-time employees as well.
The taxable value for the property is $574,290, according to the resolution document that the court approved.
Sharp said after the meeting that he did not know how much JSCV would save in taxes.
Rusk County Chief Appraiser Terry Decker was out of the office Monday and not available for comment.
In the hotel business for nine years, Chase is co-owner of the Baymont Inn & Suites in Henderson and La Quinta Inn & Suites and Holiday Inn Express, both in Palestine, through a separate company.