FARMINGTON -- A Wyoming developer is moving ahead with plans to build the city's first hotel, even if the original time frame for the project has come and gone.
Shreya Management Inc., of Evanston, recently reinitiated plans for an 84-unit Hampton Inn at 491 W. Bourne Circle, near the corner of Park Lane and Lagoon Drive on the city's north side. Dharmesh Ahir owns the management company.
The city's planning commission voted 4-1 to approve a conditional-use permit/site plan for the project.
But even with a new green light from the planning commission, the project has already run into a snag, said Mayor Scott Harbertson.
A neighbor has filed an appeal of the site-plan approval to the city council, dealing with a potential fence along the northern boundary of the project. Approximately 75 percent of the northern boundary line of the property abuts property that is zoned for agricultural use, while the remaining portion abuts a large-residential zone.
Despite concerns, the planning commission did not require a masonry fence next to the agricultural zone, nor did it require a fence next to the large-residential zone. Harbertson said the council could hear the appeal as soon as its Sept. 20 meeting.
There are other dynamics involving the project, which the council may have to address soon as well.
Ahir first initiated plans for the hotel in summer 2009 and asked city leaders if they would waive some of the impact fees. At that time, the developer estimated it would cost $160,000 in impact fees to build the hotel.
City leaders came up with an alternative plan, which would allow the developer to defer some of the fees until the structure was finished. That proposal was approved, but also expired last September. Since that time, the city has also raised its impact fee schedule.
Harbertson said it's possible Ahir may come before the council seeking the same deal.
The $250 million Station Park project is expected to include some hotels as part of the village already under construction.
Harbertson is not sure council members will be as eager to give concessions to a developer, because they know hotel space is part of the Station Park project.
"We would like to have a hotel in Farmington. ... Two years ago, we didn't have that option (Station Park). We'll see what happens," Harbertson said.
As part of the process of preparing for a new hotel, city leaders in 2009 did a benefit analysis on how a hotel would impact the community.
The study shows the hotel could generate $112,639 in sales tax, $225,282 in transient taxes and approximately $65,600 in property taxes over a decade.
The analysis projects an incentive of $38,000 in transient tax, which would be given to the developer as part of the overall package.