ALBEMARLE — An upcoming Albemarle business that is set to create 20 new full-time jobs and invest over $8 million over the next five years recently gained some additional financial traction.
At its meeting on Monday night, the Albemarle City Council unanimously approved an economic incentive agreement for a commercial company in the hospitality and tourism industry.
A public hearing for “Project Suite” was held before Councilmembers Chris Bramlett, Dexter Townsend, Chris Whitley, Benton Dry, David Hunt and Bill Aldridge joined Mayor Pro-Tem Martha Sue Hall in a 7-0 vote in favor of the economic incentive.
The city of Albemarle will now support a 50% business development grant to be paid out over a five year period from the city’s general fund.
It is estimated that the Albemarle can receive a net increase in revenue of $600,000 in new property taxes, sales tax, and occupancy tax over the next 10 years as a result of this investment.
The economic incentive resolution was brought to the council by Albemarle Economic Development Director Lindsey Almond, who fielded a question from Hall regarding the financial situation.
“You’re talking about the 50% development grant,” Hall said. “To be specific, if it’s going to bring in $600,000 in property taxes, are we thinking that $600,000 would be 300,000?”
“For a 50% property, 50% reimbursement of the grant is of property taxes paid for five years,” Almond said. “So the $600,000 is the estimation of ad valorem taxes, property taxes and occupancy tax over the next 10 years. It would be a net gain of about $475,000 after the reimbursement.”
The Albemarle City Council is set to meet again on Aug. 5 at 6:30 p.m. in the City Hall Council Chambers.