Pittsfield Council OKs TIF Extension for Proposed Holiday Inn Express

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The planned Holiday Inn Express at 1055 South St. is staged to open in May 2023, after some pandemic delays.

On Tuesday, the City Council voted to amend the hotel's six-year tax increment financing agreement that was approved in May of 2020 to an eight-year TIF.

The new agreement will span from fiscal 2021 to fiscal 2028 and will forgive about $755,000 in real estate taxes while generating over $1.27 million in tax revenue.

"As you know, May 2020 is right when COVID hit and for the past two years the hospitality industry took a major hit and the banks were not financing new hotel projects, so for the past two years, there's been no construction or investment in that property," the city's Business Development Manager Michael Coakley said.  

"But [principals Mauer and Dilip Desai] would like to start building the project later in the spring of this year so they've asked us for a two-year extension of the six-year TIF to bring it to an eight-year TIF, nothing changes except for the extension."

The Desai's have requested a two-year extension due to delays in construction that were a result of the economic effects of the COVID-19 pandemic. The 77-room Holiday Inn Express is expected to create 25 to 30 jobs, 15 of them being full-time.

Originally, the build was estimated at $10 million and is now coming in at closer to $12 million. During the meeting, Mauer Desai confirmed that they have secured financing.

Councilor at Large Karen Kalinowsky supports the TIF agreement but said she finds an issue in giving businesses tax breaks while residents' taxes have increased.  

For FY22, average homeowners will see taxes increase by about $200, or a 5 percent increase, because of rising property values. Earlier this month, the council established a 10 percent increase in water rates and a 12 percent increase in sewer rates.


"I think business in Pittsfield is really important, I support this, I just have to add that we're giving businesses tax breaks and we're taxing our residents," she said.

She said she looked up the Desais' limited liability company for the project, Somnath LLC, and found it was dissolved in 2019.

Desai said this is news to him and confirmed that tax returns are filed on it yearly. He later explained that the family has other entities in Pittsfield, as they operate the Best Western Plus at 1350 West Housatonic St.

Ward 5 Councilor Patrick Kavey said even with the TIF, more taxes will be generated with a building on the land than without.

For FY22, the property's taxes were just over $15,000 a year.

"I'm fully supportive of this because even with the TIF, we're going to be generating more tax revenue than we are currently," Kavey said.

"And I drive by your property every day and was concerned thinking that you might not be building a hotel and that there might not be new jobs so I'm happy to hear that you're back and look forward to seeing you building a hotel and be very successful."

Some date amendments needed to be made to the amended order that was submitted to the council by Mayor Linda Tyer and because Tyer was not present at the meeting, President Peter Marchetti clarified that the vote will be contingent on there being a new, signed order with the corrected dates the next day.


Tags: motels, hotels,   tax incentive,   

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BRTA Focuses on a New Run Schedule

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority is still working on maintaining its run schedules after dropping the route realignment proposal.

Last Thursday's meeting was Administrator Kathleen Lambert's first official meeting taking over the reins; retiring director Robert Malnati stayed during a transition period that ended last month.

Lambert is trying to create a schedule that will lessen cancellations. There was a two-hour meeting the week before with the drivers union to negotiate run bids and Lambert is working with the new operating company Keolis, which is taking over from Transdev.

The board spoke about anonymous emails from drivers, which Lambert said she has not seen. iBerkshires was not able to see those letters, but has received some. 

"They were lengthy emails from someone describing themselves as concerning BRTA employee, and there was a signed letter from a whole group of employees basically stating their concerns. So, you know, to me, it was a set of whistleblowers, and that, what my understanding is that this really triggers a need for some type of process to review the merits of these whistleblowers, not going to call them accusations, but basically expressions of concern," said member Stephen Bannon.

A letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.

Lambert said it's difficult to navigate a new change. She also noted many drivers don't want to do Saturday runs and it has been hard negotiating with drivers on the new runs.

"I would like you all to keep in mind that the process of change is super difficult. Transdev has been here for 20 years, and some of these drivers have never known any other operating company, the way some of the operations have been handled has been archaic," she said. "So getting folks up to speed on how a modern transit system works is going to be painful for them. So I don't want to say that I'm unsympathetic, because I am sympathetic, but I am trying to coax people along with a system that's going to seem very strange to them."

The board spoke about better communication between them and Lambert, citing cooperation will be best moving forward.

"There's just a lot of stuff in the air right now, and there are a lot of fires to put out to make this a coordinated effort. And if we don't keep our communications open and be straightforward, then you get blindsided about how you know the input that you could get from us about your position, and how you know what's going on in your direction, and we get blindsided. And I think that we have to make sure that this is a collaboration," said member Sherry Youngkin.

"Both sides have responsibilities, because in the long run, this advisory board is going to have to make decisions as to how we brought forward and if we've gone forward in a fair and helpful way. And I think that's hopefully what everybody is looking for also." 

Transdev and Keolis held a three-day recruiting event interviewing almost 40 candidates and offering jobs to eight, but only three stayed on to start training. Lambert said it was disappointing but she will keep trying to retain more people.

In her first report to the board, she noted that ridership dipped a little over 10 percent, but still remains higher than last year, adding that was because of cancellations of services because of the lack of drivers.

Like the last meeting, some of the advisory board members were torn over the start of the Link413 service, worried that the start of the service took drivers away and the numbers of riders are low.

Lambert, however, said the ridership has doubled from last month.

"As I've spoken before, we have, generally, a six-month adoption for brand-new service before you can really go in and evaluate, are you being successful based on the grant that my predecessor wrote along with the team for PBTA and RTA, we are ahead of schedule, which is pretty good, so I'm hoping that will continue to improve," she said.

Member Renee Wood said the board never approved the service, adding the only thing she could find in the minutes was a vote to accept the equipment. She said it was supposed to be put on the agenda to discuss.

"The Link413 service has been three years in the making. It's been a grant that was accepted and has been working with our partners, PVTA and FRTA, to put into place. So I don't have the entire history of how that process worked, but it's been three years in the making, and did we not understand that once we accept that grant that we were going to put in new service?" Lambert said.

The board discussed if Title VI, the Civil Rights Act, was followed with an accurate review and accurate amount of time for public comment period on the service changes and if its attorney should review if the  grant conditions were properly followed.

Lambert said changes had the 60-day comment period included in the proposed route realignment packet, giving the opportunity for the community to respond to that as well but will look into the legality of the situation with their attorney.

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