Dalton City Council expected to vote on hotel tax financing agreement, court agreement

Charles Oliver, The Daily Citizen, Dalton, Ga.
·2 min read

Jul. 16—The Dalton City Council is set to vote Monday on an agreement that would provide almost $1 million in tax increment financing for a hotel in downtown Dalton.

The council members meet at 6 p.m. at City Hall.

The hotel, named The Carpentry, is being developed by businessman Kasey Carpneter and is planned for the site of a former bank building at the corner of the 200 block of West Cuyler Street opposite of both of Carpenter's restaurants, The Oakwood Cafe and Cherokee Brewing + Pizza Company. Carpenter had originally planned to renovate the bank building, but he said as he got further into planning he found it made more sense to tear the building down and construct a new building. The bank that stood at that site was the Community and Southern Bank.

The hotel will be a "boutique" hotel, smaller and more intimate with an eye on design, with more expensive furnishings and decorations.

Carpenter said he is partnering with Steve Herndon, a Dalton businessman who owns and operates hotels across the Southeast, on the project.

The property, which is now an empty lot, is currently assessed at $90,000. But if the hotel project is completed its estimated assessed value would be $9.7 million.

Because the project is in the downtown tax allocation district (TAD), it is eligible for tax increment financing. TADs freeze the value at which a property can be taxed for general revenue. Taxes collected on additional value created by improvements to the property are dedicated to pay for infrastructure, public artwork or other amenities to attract a developer or developers to that area.

In December 2018 Carpenter reached an agreement with the city and the city school system to finance the hotel. That agreement called for Carpenter to finish the hotel on or before Dec. 31, 2019. Since Carpenter did not finish the hotel by that date, the deal expired and Carpenter had to apply for a new deal.

Carpenter said if the agreement moves forward the hotel could be open as soon as spring 2023.

The council members are also scheduled to vote on:

—A $23,820 agreement with Findlay Roofing of Marietta for a new roof for Fire Station 4 at 1800 Dug Gap Road.

—A $15,000 agreement with CSX Transportation for engineering for a proposed extension of sidewalk on North Thornton Avenue from Tyler Street north to the Salvation Army headquarters, just about half a mile from Hamilton Medical Center. The sidewalk would encroach on railroad right-of-way, and CSX must approve the project.

—A $14,524 contract with the Dalton Convention Center to host Municipal Court through the end of this year. Court proceedings will move to the convention center starting Monday. Court has been held at City Hall. Officials cite greater parking at the convention center as one reason for the move.