GCEDC approves incentives for hotel at Batavia Downs

The Genesee Economic Development Center Board voted unanimously to approve ADK Hospitality’s application for approximately $638,000 in tax exemptions during a special meeting this afternoon.

ADK is planning to build an 84-room hotel connected to the Batavia Downs gaming facility. The investment is estimated at $5.49 million.

The board agreed with ADK Hospitality that the project falls under the tourism destination requirement with the general municipal law, which states the destination must bring in outside traffic.

In response to the Clarion Hotel’s opposition to the project, Steven Hyde, GCEDC president and CEO, stated that ADK’s project application was different from the Clarion’s project application submitted in 2012.

According to GCEDC records, the Clarion Hotel submitted an incentive application for window and stucco upgrades to their facility as well as debt refinance. Staff responded to the application and said the project may not meet law requirements to enhance the destination and attract more visitors. The Clarion Hotel then removed its application.

For ADK's project, Hyde stated many full-fledged casinos offer lodging and the hotel is a good opportunity to increase traffic at Batavia Downs.

“Today we’re looking at brand-new construction, a new feature integrated to the destination and a market study that confirms the projections will meet law requirements,” Hyde said.

Wolcott Hinchey, chairman, thinks the hotel will significantly contribute to continued growth and economic development in Genesee County.

“One of the things that I liked about this project is that we’re taking a tax-exempt property and selling it to a private developer and putting a property in the Town of Batavia back on the tax rolls,” Hinchey said. “I think the benefits of the project to the community outweigh the negatives.”

Michael Nolan, vice president of Western Regional Off-Track Betting, is looking forward to starting hotel construction.

“The staff here has been wonderful with looking at every detail of the project and what it will mean to the community,” Nolan said. "We can’t thank them enough for all the professionalism that they displayed throughout the whole process. As soon as the legal work dealing with the closing of the property is complete, we will start construction at the Downs.”

In addition to ADK's project, the GCEDC approved an application submitted by Manning Squires Henning Co. for approximately $170,000 in tax exemptions to expand its facilities. The company plans to add 5,000 square feet and renovate its existing shop and office space. The project’s investment is approximately $1.3 million.