Nine Rochester businesses were approved Tuesday for hardship abatements that put last year’s property taxes on payment plans.
Combined, they owe approximately $1.4 million in property taxes, which will be paid in periods ranging from six to 18 months, with fees and interest dropped once payments are complete.
A 10th business, the new Hilton Hotel at Center Street and Broadway Avenue, was denied a hardship abatement, based on its use of tax-increment financing.
Mark Krupski, Olmsted County’s director of property records and licensing, said the public financing, which returns a portion of property taxes paid during a defined period, means the county can’t apply the hardship program to the hotel.
“By statute, we don’t have an abatement authority to do so,” he said of the $1 million due on the hotel’s nearly $1.4 million 2020 tax bill.
The county commissioners approved the new hardship abatement policy in December to address concerns related businesses struggling to pay tax bills due to COVID-19 challenges and lost revenue.
The new policy followed action by the commissioners to waive penalties for commercial property taxes that were paid late in 2020.
Titan CEO Andy Chafoulias said he understands that the Hilton’s TIF status complicates the request to create a payment plan, but said he’s working with city and county officials to see if an alternate agreement can be arranged.
“I’m very appreciative on how this is being approached to benefit all commercial property owners, not just our hotels, but all hotels, if they need assistance,” he stated in an email to the Post Bulletin.
The Hilton Hotel owes nearly $25,480 in fees and interest on the delinquent taxes.
Of the nine businesses approved for hardship abatements, eight are hotels or motels.
Krupski said his office received one additional application for abatement, which requires at least a 25 percent payment of taxes to start, but the request arrived after the Feb. 15 deadline.
“We’ve also had some inquiries from some local attorneys, so there is still some interest out there,” he said, adding he doesn’t have details on the “handful” of businesses that could still be interested in applying for a commercial hardship abatement.
Without an extension approved by the county commissioners, Krupski said any future applications will be recommended for denial based on missing the deadlines.
The hardship abatements approved Tuesday are:
- Hilton Garden, 225 S. Broadway Ave., which owes $329,232 on a $438,976 tax bill with payments scheduled over 18 months.
- DoubleTree, 150 S. Broadway Ave., which owes $621,817 on a $829,090 tax bill with payments scheduled over 18 months.
- Microtel Inn, 4210 W. Frontage Road, which owes $70,172 on a $93,672 tax bill with payments scheduled over 15 months.
- Comfort Suites, 4141 Maine Ave. SE, which owes $97,722 on a $130,322 tax bill with payments scheduled over 18 months.
- Towneplace Suites, 2829 43rd St. NW, which owes $106,728 on a $142,728 tax bill with payments scheduled over 18 months.
- Super 8, 1230 S. Broadway Ave., which owes $59,394 on a $79,394 tax bill with payments scheduled over 12 months.
- Rochester Inn, 1837 S. Broadway Ave., which owes $8,000 on a $19,724 tax bill with payments scheduled over six months.
- Quality Inn, 5708 Bandel Road NW, which owes $74,214 on a $98,952 tax bill with payments scheduled over 15 months.
- Grand Rounds, 4 Third St. SW, which owes $34,656 on a $49,656 tax bill with payments scheduled over eight months.