Mayor Tom O’Leary announced the completion of the site drawing for the 70-bed hotel project at Tuesday night’s council meeting.
Galion City Council passed a resolution to support a Tax Increment Financing district for the three acres of now-vacant property on Brandt Road near state Route 598, where the hotel would be located.
O’Leary informed Council that a portion of the property taxes would still go to Jefferson Township because of an agreement the two municipalities had when Galion annexed that area.
“It’s a small issue,” he said.
With the site drawing completed, the city knows the orientation of the proposed hotel and where to place the utilities.
O’Leary said the next steps for the city are to look at the cost and determine a schedule. The property owners will transfer about 500 square feet to the city before installing the infrastructure.
O’Leary anticipates the cost for putting in a roadway, a sewer system and water from $300-400,000.
The hotel is expected to bring $100,000 of new taxable income to be divided among the school district, Jefferson and payment for infrastructure.
The mayor said it would take the city five to seven years to pay off the debt incurred from the infrastructure costs.
The hotel is expected to be a Sleep Inn & MainStay Suites, an upper mid-scale hotel brand that offers both nightly and extended stay. The brand is part of the Choice Hotels International chain, based in Rockville, Md., and is a new dual and prototype brand that the company launched a couple years ago. There are currently more than 30 under construction in the nation.
The $5.5 million project is expected to start sometime next year.
Reach Klein at 419-468-1117, ext. 2048 or on Twitter at @brandoneklein.