Pittsfield Subcommittee Supports Holiday Inn TIF Extension

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The Finance subcommittee on Monday recognized the pandemic's impact on business and the benefits of a new hotel.

The panel supported a second two-year extension of a tax increment financing agreement with Somnath LLC, initially approved in 2021. The Desai family, who are well established in the local sector, plan to build a Holiday Inn Express at 1055 South St.

Councilor at Large Earl Persip III said this is a perfect example of what the council does.

"We support a local family that has multiple businesses in the city, that has done multiple things, and we're just helping them recreate something that they had had there at that spot once before, too," he said.

"So this should be celebrated, in my opinion, and I thank you for everything you do within the city because I know this is not your only business. You have many businesses and I know you support the community in other ways too."

Higher construction costs and supply chain disruptions reportedly inflated the 77-room hotel from $10 million to $13 million. Principal Mauer Desai said the cost per room key has even increased significantly.

"Each and every item probably went up individually," he said.

In 2022, the city approved a two-year extension for a 10-year TIF that would will forgive about $755,000 in real estate taxes while generating more than $1.27 million in tax revenue.  

The contract begins with 100 percent of the increments forgiven in the first four years, 80 percent in the fifth year, 60 percent in the sixth year, 40 percent in the seventh year, 20 percent in the eight year, and 10 percent in the ninth and tenth years.

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

"Supply chain issues have hit the project along with almost every other construction project nationwide," Community Development Director Justine Dodds explained.

"That has really delayed this project starting, and the appraised value remains exactly the same because the project has not been completed."



Desai said the project was started out of pocket in January of 2023, with about $1.5 million in funding initially.

"Our goal was to kind of put our money up, get the project so we can meet the TIF's timeline and our own timeline and we got to about July, we were funding the project, all site work, out of pocket and the loan closed," he said.

"But then we ran into this shortfall, and that was from an increase in almost each item and then because the price is now over $10 million, our [general contractor] also needed to be bonded."

He said they funded the project as much as possible and paused so that the GC could get the bond. It was secured in January and work picked back up with an expected grand opening next spring.

Ward 1 Councilor Kenneth Warren supported the extension but said the continued requests were "a little nerve-wracking." He asked for a breakdown of the increases.

Warren said this extension has nothing to do with COVID-19 but Persip disagreed.

"We're still feeling the effects of COVID. Lumber prices are still affected by COVID, supply chains are affected by COVID so I do disagree there," Persip said.

"We're in a completely different world than we were then but in the building world, we are still feeling the effects of COVID."

Desai emphasized that this will be in his family for many years. This is not the first hotel they have operated on the property.

Principal Dilip Desai was thankful for the extension and detailed his experience coming to the Berkshires as a 28-year-old and running what was then The Golden Key.

While giving a first-quarter review of fiscal 2025, Finance Director Matthew Kerwood said the new rooms coming online "clearly has an economic benefit to the city from a hotel-motel tax standpoint, which I think we all would want to see and encourage."


Tags: motels, hotels,   tax exemption,   

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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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