Bringing in money to the Springfield Township School District and Delaware County, Blue Hen Developers agreed to a payment in lieu of taxes program to offset a hotel development at the Springfield Country Club.
The Springfield Board of Commissioners unanimously approved Tuesday night a PILOT program for the 92-room Courtyard by Marriot set for the township-owned site at 400 W. Sproul Road.
Previously, the township agreed to a 30-year lease for $110,000 annually from Blue Hen Developers to build a three-story, 92-room hotel, which will match some aesthetics of the country club in addition to taking on the general look of Courtyard by Marriott building.
On Tuesday, the governing body ratified agreements made by the county and school board for payments in lieu of taxes.
Jim Byrne, attorney for Springfield, explained the agreement:
- Hotel pays schools:
- $15,000 in year one
- $30,000 in subsequent years
- Hotel pays county:
- $2,700 in year one
- $5,500 in subsequent years
Because the project exists on tax-exempt land, neither the school district nor county really loses any revenue, Byrne said.
"There is pretty much no impact on the school and only very minimal demand on county services," he said.
Additionally, Byrne said the project should generate money to Springfield by drawing in people to shop and utilize the township's golf course and ice rink.
Because Springfield Township will annually receive tenant payments from Blue Hen, a PILOT agreement was unnecessary, Byrne said.
The Delaware County Daily Times previously reported a summer 2013 completion date for the hotel.