The Richmond Common Council has delayed the start of an abatement for the new Holiday Inn to the 2013 tax year, an adjustment to the council’s original agreement with the hotel’s developers.
During the council meeting Monday, Councilman Bruce Wissel, representing the finance committee, said when a tax abatement is granted, the recipient is expected to file paperwork as to the assessed valuation in a timely manner.
Rahee Investments, which is led by Kirit Patel, failed to file the paperwork in a timely fashion in regard to the Holiday Inn and conference center at 6000 National Road E., Wissel said. The original 10-year abatement on the project was approved by council in December 2010.
Wissel said because the paperwork was filed after the deadline for establishing the tax rate, the city would not be able to collect the tax proceeds for the first year of the abatement.
To avoid that issue, Wissel, the auditor and the township assessor met with Rahee Investments’ representatives and all agreed to postpone the abatement start until the 2013 tax year, so all of the improvements are accounted for in the valuation.
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