Reprinted from York News-Times
By R.J. Post
The York City Council on Thursday night approved $1.35 million in tax increment financing for a new hotel to be built next to the Holthus Convention Center.
The 109-room Hyatt Studios hotel will carry a price tag of $18.35 million. TIF will be used to assist with site acquisition, preparation and infrastructure extension to the property.
Hyatt Studios is described as an “upper-midscale extended-stay” hotel. Guest rooms are similar to studio apartments.
TIF provides access to financing on the added increment of property tax revenues created by the project. Additional property tax revenue — above the amount generated by the property before the improvement — is diverted to assist in financing for up to 15 years.
The existing base property tax continues to be sent to the political jurisdictions, as it was before any improvement happened.
The plan and cost-benefit analysis included with the council’s agenda say the hotel will attract more conventions and travelers to York, generating additional tax revenue. The Hyatt Studios will also create 22 new jobs.
“Without the grant of funds from tax increment financing, the redeveloper cannot generate sufficient return to justify this level of investment,” the analysis says. “The project would not be feasible without the use of TIF.”
Collaboration Real Estate LLC of Des Moines, Iowa, is the project developer.
The hotel would open after Jan. 1, 2026.
“This is a great project, and I’m really excited to see this happen,” Mayor Barry Redfern said. He said the city always intended to have a hotel adjoining the Holthus Convention Center.
“I truly believe there’s an opportunity here and the community sees it,” said Jonathan Koester, president of Collaboration Real Estate. “If there’s a convention center and there’s no hotel, we see opportunity.”
“I’ve been trying to get a hotel since I started,” said Lisa Hurley, executive director of the York County Development Corp., who worked with Collaboration on bringing the hotel to York. “So, we finally have it.”
In other action on Thursday, the council:
- Approved the one- and six-year street plan with a combined cost of $3.67 million.
- Approved the purchase of landfill litter netting from Midwest Netting Solutions for $248,405.
- Heard the annual report on the Police Department from Chief Ed Tjaden.
- Approved a proclamation naming April and May as Spring Spruce Up Months.
- On third and final reading, approved the annexation of irregular tracts in the city’s industrial park, bringing them into city limits.
