PITTSFIELD, Mass.— The COVID-19 pandemic's effect on construction costs continues to delay an upcoming Holiday Inn Express.

On Tuesday's City Council agenda is a request to amend a tax increment financing agreement between the city and Somnath LLC, initially approved in 2021. The company is seeking a second two-year extension because of higher construction costs, supply chain disruptions, and the need to secure additional financing.

"Remember, all these businesses that get a TIF pay taxes and in the case of this hotel, once they're open there will be hotel, motel taxes that the city will be receiving as well," Mayor Peter Marchetti said on his biweekly television show One Pittsfield on Monday.

"So it's important to help businesses out as we go along to be able to help the city out too."

The new hotel is expected to create between 25-30 jobs, 15 of them full-time positions.

In 2022, the city approved a two-year extension for the TIF that would will forgive about $755,000 in real estate taxes while generating more than $1.27 million in tax revenue. The original build was estimated at $10 million and has been inflated to over $13 million.

Still, representatives Mauer and Dilip Desai expect for the hotel to open in the spring. Located behind the former Dakota Steakhouse, construction is well underway.

Marchetti said the family is well established in the community, having successfully owned and operated several hotels in Pittsfield and the surrounding area including the Best Western Plus on West Housatonic Street.