Camillus, N.Y. — Construction of a 90-room tru by Hilton hotel at the Township 5 shopping center will increase the value of tax breaks for the center.
The Onondaga County Industrial Development Agency voted 5-0 Tuesday to increase the value of sales tax exemptions for the shopping center by $400,000 to $2.8 million.
Hinsdale Road Group Inc., the shopping center’s developer, requested the action so that an exemption from sales taxes previously granted for the center will also cover the hotel’s construction.
Construction is expected to start in the spring on the hotel, a newly launched Hilton brand designed to appeal to younger travelers with the use of vibrant colors and graphics.
Joseph Goethe, an owner and head of leasing services at Cameron Group, the company behind the Township 5 development, said construction of the hotel will take about a year.
The total cost of the shopping center’s development will increase by $4.5 million to $75.31 million as a result of the hotel’s construction.
The exemption approved by the agency covers sales taxes on construction materials, furniture and fixtures.
State law generally prohibits industrial development agencies from giving tax breaks to retail developments. However, the county agency said Township 5, located at the northwest corner of Route 5 and Hinsdale Road, fell into an exception that allows agencies to assist retail projects that are considered tourist attractions.
The agency said Costco, the center’s anchor store, is a tourist attraction because a significant number of its customers come from outside the region.