Council: Hotels not a priority for TIF

The Rochester City Council sent a message to the development community on Monday: the use of tax assistance for hotels is no longer a priority.

The measure followed a vote by the council authorizing the use of $1.8 million in tax increment financing for a hotel project on Second Street.

Council Member Nick Campion “reluctantly” supported the assistance agreement with the project developer, before introducing a measure to amend the city’s TIF policy to include language that hotel projects are not a priority when its comes to the city’s use of tax assistance.

Campion said the change will “make it clear to those coming to develop hotels in Rochester that we expect them to be built without TIF support.”

[Related: Previous reporting on this subject can be found here and here.]

The motion passed 6-1 with Council President Randy Staver voting nay. He described Campion’s policy directive as “a bit too Draconian.”

In addition to the amendment, the council also directed staff to begin developing a ‘community benefit section’ for future TIF agreements. That conversation will likely come back before the council sometime in the fall.

Sean Baker is a Rochester journalist and the founder of Med City Beat.