Supervisors on Monday unanimously granted a tax exemption to the old Stone Hotel.
The mixed-use redevelopment is in the 200 block of Fifth Street South. It includes 18 apartments and nine retail spaces.
The property renovation is eligible for local ad valorem tax exemptions of up to 10 years under two state statutes, since it is located in both the central business district and a historic district, Tax Assessor Greg Andrews explained.
In June 2021 the board approved a resolution of intent to issue the tax exemption, and Andrews asked the board to formally approve it now.
The exemption is for 10 years. The development will be taxed at its assessed value before construction began — in other words, the improvements will not be taxed while the exemption is in place.
The exemption is only for the county’s ad valorem taxes. The school taxes will still be due in full. It also does not apply to sales taxes.
Developer Chris Chain bought the site from Susan MacKay, whose family had owned it for more than 70 years, in 2016. Originally slated to become a boutique hotel, it now houses a mixture of apartments and retail spaces, along with a gym.
The buildings, which are adjacent, were built in 1905. They were originally The Stone Hotel and The Arcade Hotel. In the 1940s MacKay’s family bought them, and they housed a variety of businesses ranging from Price’s Auto Parts to Kwik Kopy and Party and Paper.
Board president Trip Hairston said developments like the Stone Hotel are good for everyone.
“That is one of the few we’ve done inside the city limits,” Hairston said. “That was a good thing for the county, and it’s a good thing for the city. We’re very grateful to the owners who put that kind of investment in downtown. We would like to see them succeed.”
To be eligible for the exemption, county policy requires investments for redevelopments fall between $1 million and $4 million.
Improvements at the old Stone Hotel totaled about $3.3 million, Andrews said.
The city of Columbus already approved a similar tax break for the project.
Brian Jones is the local government reporter for Columbus and Lowndes County.
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