WHEATFIELD – The owner of a Niagara Falls motel asked the Niagara County Industrial Development Agency for help Wednesday in tearing down his current business and erecting a larger one on the same site.
The IDA accepted the application from DSAV LLC, owner of the Cascade Inn, 7804 Niagara Falls Blvd. The owner, Dilip Shah, wants to demolish that 25-room motel and erect a 50-room, three-story Sleep Inn to replace it.
“The old one is just a basic motel,” Ashish Shah, vice president and manager, said. The Sleep Inn would have breakfast, an indoor swimming pool, a fitness center and suite-style rooms.
The $4.4 million project would begin with demolition in late winter or early spring of 2015, Ashish Shah said. It would take nine or 10 months to complete the new building.
Architect Jonathan Bennett said the building will feature a 55-foot-high tower.
Shah said he has two employees at the Cascades Inn, who will be retrained and called back to work at the Sleep Inn. In addition, about 10 new jobs are to be created.
The IDA will hold a public hearing on a date to be announced on the proposed 10-year payment-in-lieu-of-taxes, or PILOT, arrangement. It would include exemptions from paying sales tax on building materials, furnishings and equipment for the new hotel.
The abatements would save the company an estimated $592,982 over 10 years, the IDA staff calculated.
IDA Chairman Henry M. Sloma said, “We have had the pleasure of assisting a number of hoteliers along Route 62 (which is Niagara Falls Boulevard). The whole of Route 62 is getting a whole new look. It’s great news.”
One of the previous hoteliers who received an IDA tax break, Ali Rizek, whose planned new hotel at 6115 Niagara Falls Blvd. has yet to break ground, was granted a six-month extension of the deadline to close on the deal.
Rizek had told the IDA when he was approved for a tax break two years ago that his new facility would be a 100-room Comfort Inn and Suites, to be combined with a “New York-style” restaurant.
He informed the IDA in a July 31 letter that he is changing franchises for the new hotel. He didn’t reveal what the new chain would be.
Rizek, of Williamsville, also owns the Niagara Falls EconoLodge.