MANASSAS — The developers of a new Tru by Hilton Hotel will receive a $10,000 grant from the Manassas Economic Development Authority once the new hotel opens.
The $10,000 check from the EDA to hotel developer Holladay Properties amounts to a quarter of the organization’s total budget for economic incentives for 2018. The money will go to help offset the cost of development permits and fees and will be given after the hotel obtains its occupancy permit from the city.
The hotel will be located at the Landing at Cannon Branch development on Gateway Drive, behind the Manassas DMV office. The planned 98-room Tru by Hilton hotel is now the commercial anchor of the center after Heritage Brewery announced it would not build a new distribution center and restaurant.
The EDA also granted $10,000 to Crossroads Tabletop Tavern in Downtown Manassas this year, a restaurant that allows customers to dine while playing a selection of board games.
EDA member Denise Harrover said she had “serious reservations”, and said $10,000 is “nothing” in the “grand scheme” of business, and that the grant would be better spent be used to help small businesses who want to open in the city.
“I’m a little surprised.” Harrover said, and added that she thought this was “not a good use of the funds.”
EDA member Holmes Smith agreed and said that it would be better for the EDA to give that money to small businesses.
EDA Chairman Mark Olsen said that this grant had already been agreed upon by the EDA back in 2016, under a different board. The EDA also discussed the grant as recently as October 2018, Olsen added.
Despite her misgivings, Harrover said that the EDA will look “idiots” if they go back on their word regarding this agreement. “I don’t feel comfortable saying no when the committee has already said yes,” Harrover said.
EDA Secretary Miguel Pires added that he “hasn’t been a big fan of the hotel deal from day one” but that since this has already been agreed on, it is necessary that the EDA honors the agreement for the sake of their “reputation and integrity.”
Pires also would have preferred the grant go to a small businesses.
Hepburn pointed said it would be nice to see the developer Holladay Properties at the meeting to accept the grant, otherwise, the EDA is just “rubber stamping” the grant to the developer. Hepburn also said that if the grant hadn’t already been agreed on years ago, he too would vote no.
EDA member Holmes Smith was the only dissenting vote to provide the grant.
The $10,000 grant is on top of a newly approved gap financing plan that will use city and state tax dollars, as well as cash from the developer to help pay for the hotel’s construction over the course of 25 years, which the EDA also voted to approve.
