Public will have a say in whether Hill Top House development gets a property tax break – WV MetroNews

The next step for Hill Top House, the dream hospitality destination on a majestic overlook of the Potomac River, could come through borrowing against anticipated future property taxes.

In other words, the hospitality project in Harpers Ferry is asking county authorities to approve tax increment financing amounting to $22 million. Authorities would issue a bond and then divert the property taxes toward paying it down.

Jefferson County Commissioners have set a public hearing on the matter for 6 p.m. August 17.

The hotel has been a centerpiece of Harpers Ferry since it opened in 1889. For the time, it was considered luxurious with electric lights, bath tubs with hot and cold running water, a dance pavilion and 4,000-square-foot dining room. Steam heat kept guests warm in the winter.

Then it ran into disrepair. Fred and Karen Schaufeld and their SWaN Investors company purchased the historic hotel property in 2007, closed it and announced intentions to rebuild Hilltop as an upper-echelon hotel.

That vision has been advancing incrementally in recent years, but the developers of Hill Top House say more steps are necessary.

Representatives of Hill Top House this month spoke with Jefferson County commissioners and urged approval of a tax increment financing district.

John Stump, attorney representing SWaN, said the tax increment financing district would be comprised solely of the Hill Top House property.

Last year, he noted, the project went through the process of creating an Economic Opportunity Development District, which was approved by the county and then by the State of West Virginia. That would work by shifting sales taxes generated by Hill Top House to costs associated with the development.

This next step focuses on property taxes.

“So we’re here today to start the process on the real property TIF,” Stump said.

The upcoming public hearing is the first of several steps for Jefferson County government. An application for the tax increment financing district will be provided to the county school system and the West Virginia Department of Economic Development. In the end, the county commission would make a decision on creating or denying the district.

“So this is the first of three steps,” Stump said. “This doesn’t obligate the county commission to approve the TIF district. It simply starts the process and schedules the public hearing.”

Hill Top House’s district would cover nine acres in Harpers Ferry. The financing would support necessities like water, wastewater, telecommunications, power sources, parking, sidewalks, street lighting, demolition, site preparation and more.

The proposal means the county would issue bonds to be paid down through the property taxes that would normally go toward local and state government. The agreement calls for a 30-year bond, out to the year 2054, but SWaN says it is likely to pay down the amount sooner. After that, taxes would flow as normal.

SWaN estimates the project would result in 239 construction jobs and 129 permanent jobs.

“While other public sources may be used in conjunction with TIF funding as they become available, to date no funding sources have proven to be available or a viable alternative for financing the TIF Projects,” SWaN wrote in its application.

“The lack of a revenue source has made it prohibitive for the County Commission and/or the Developer to finance the proposed projects without the assistance of TIF funds.”

Hill Top House, because of its prominent position in a historic area, has long been the focus of local debate.

Jefferson County Perspective, a conservative group, wrote online that it is intrigued by the proposed TIF district but warned citizens to watch the details.

“People need to start paying close attention to the Hilltop House and their request for a TIF District,” Jefferson County Perspective wrote on its Facebook page.

“While we support the building of the Hilltop House, financing of the hotel should not be on the backs of West Virginia taxpayers.”

A progressive group in the county, Jefferson County Vision, hasn’t taken a position on tax increment financing for Hill Top House. That group has been focused on the Rockwool insulation manufacturing facility that has been controversial in the county.

“We are focused on heavy industry in the county, and not taking a position on this development with the Hilltop House Hotel,” Marie Uehling of Jefferson County Vision told MetroNews.