ontario municipal building

Ontario City Hall.

ONTARIO -- Ontario will soon have another motel, thanks to a tax abatement granted by city council.

Ontario Hospitality Inc. will receive a 15-year, 100 percent Community Reinvestment Act (CRA) real property tax exemption for the construction of a new hotel “on or about Lexington-Springmill Road near U.S. Route 30,” according to an ordinance approved by council at its Oct. 16 meeting.

In return, Ontario Hospitality Inc. will donate $20,000 per year to the Ontario Local Schools’ technology fund.

“Were happy to have growth in the city,” said Mark Weidemyre, city council’s third ward representative and economic development committee chair. “It should help a lot because with what the convention and visitor’s bureau is doing…They’ve brought in so many visitors, the hotel is absolutely needed.”

Ontario Mayor Randy Hutchinson agreed.

“I think it shows that this area’s bringing a lot of people in,” Hutchinson said. “There’s so many events going on here throughout the year that there’s a need for hotel space.”

According to Weidemyre, the abatement is offered through one of three zones designated by the city a few years ago to encourage development. Developers can receive property tax abatement for the increased value of the property, usually for a period of 10 to 15 years.

Since the abatement only applies to the increased value that the development brings to the property, the county still receives the same amount of tax revenue it would if the land went undeveloped. The city will benefit from “bed taxes” paid by hotel guests and income tax earned by the hotel’s future employees.

Weidemyre estimated the hotel would add between 20 and 30 local jobs.

“There’s been a lot of growth during the last couple of years,” said Lee Tasseff, president of Destination Mansfield. “Any time there’s growth and development for new hotels, it’s a good sign.” 

Representatives from Ontario Hospitality, Inc. were not available for comment.

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