With the construction of the Nolan Reserve residential hotel set to begin in Powell this month, the Delaware County Finance Authority (DCFA) has announced it has awarded Metro Development II a sales tax exemption for the project.
The 215-suite facility is being constructed on 8.1 acres on Moreland Street, just north of Seldom Seen Road, and it will include 79 one-bedroom suites, 118 two-bedroom suites, and 18 three-bedroom suites. DRK & Company, which serves as the umbrella corporation to Metro Development II, has said the facility will be geared towards workers who have been transferred to central Ohio for temporary work assignments or for those needing temporary housing while homes are being built.
“This is not an apartment complex. The suites in this development will be rented on a temporary basis,” said DRK & Company CEO Tre Giller.
When finished, the facility is expected to cost a total of $31.2 million, including $9.4 million in building materials. It is estimated the tax exemption granted by the DCFA will save Metro Development II upwards of $655,000 in sales taxes paid.
The permissibility of the land use was challenged by the City of Powell but ultimately confirmed by a federal court in 2020. According to Powell City Manager Andrew White, “The zoning and development plan that allowed the property owner to construct a residential hotel was established by Liberty Township in 2002, prior to the property being annexed into the city.”
White added that because the development had already gone through the entitlement process under Liberty Township’s jurisdiction, there was no process for the development plans to go through the city’s Planning and Zoning Commission or City Council. With the hotel already meeting all the zoning regulations set by Liberty Township, Powell has issued all the permits requested by the developers.
Addressing concerns about the impact the hotel could have on the Olentangy Local School District, Giller said previously constructed projects similar to Nolan Reserve have not led to an influx of school-age children. He added that the project is expected to lead to $700,000 a year in revenue for the district, calling it a “windfall” for local schools.
DCFA Chairman Bill Bishop said of the development and why the tax exemption was awarded, “Metro Development has a reputation for building quality facilities, and we believe this development provides the type of short-term residential housing that we badly need in Delaware County. Not only will it benefit Olentangy schools, but area restaurants and businesses will benefit from the influx of short-term residents.”
Construction of the hotel is expected to be completed by the end of 2024.
Reach Dillon Davis at 740-413-0904. Follow him on Twitter @DillonDavis56.