Keefer Developers Request Tax Abatement Extension
Council will consider issuing a fifth tax abatement extension to Keefer developer CL RED.
“No one wants this hotel finished and opened more than myself, our company, and our owners,” said Brant Cohen of CL Real Estate Developers (CL RED) to the Hillsdale City Council at Monday’s meeting.
Cohen was present at the meeting to request more time (current deadline: September 30th) to complete the renovations of the Keefer.
This request requires an extension of the city’s OPRA (Obsolete Property Rehabilitation Act) agreement with CL RED.
For a report on OPRA and the seven OPRA-exempted properties in Hillsdale currently, read here. An OPRA agreement essentially freezes current tax levels on a property, exempting owners from paying the increased taxes on renovated buildings for a time.
This tool, Cohen argued, is necessary for helping developers take on high-risk projects, such as the Keefer House Hotel.
He added: “Although we anticipated opening sooner to take full advantage of the tax abatement—the twelve years—we do face a continual countdown of the remaining years without actualizing the full abatement. Once opened, the remainder of the abatement will be vital to provide needed relief from a massive tax increase generated by the total redevelopment of the Keefer from an obsolete and dangerous property to an upscale boutique hotel that will welcome thousands into the city.”
CL RED requests December 31, 2025 as the new deadline for completion.
During the brief discussion that followed, Councilmen Wolfram, ward 3, and Stuchell, ward 1, expressed support for the request. Wolfram pointed to difficulties (Covid-related delays, problems with the building) that were outside of CL RED’s control, while Stuchell said people he consulted have had good things to say about CL RED’s progress and commitment.
The extension, if granted at the next meeting, would be the fifth OPRA extension given to CL RED, with the latest coming from the current council in December 2024.
City Manager David Mackie suggested a vote on the request should happen at the next meeting of the Council on October 6.
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Going to need Socha to come through on this vote. The geriatrics are all in for keefer