Apparent Disagreement Stopping Progress On Holiday Inn Project in Toccoa

A proposed Holiday Inn Express for Toccoa seems to be on hold because of apparent disagreement between the developer and local officials.

Back in October, a developer announced plans to bring a 90-room Holiday Inn Express to the site of the former Host Inn at the corner of Big A Road and Fernside Drive in the Spring of 2017.

Demolition took place of the former Host Inn, a sign at the site said the hotel was “coming soon,” and construction of the new hotel was said to be on track to start this coming Fall.

Recently however, the “coming soon” signs came down and were replaced by “land for sale” signs.

A representative for Toccoa Holdings LLC, who declined to be named for this story, pins the blame on local officials.

That representative said that Toccoa Holdings LLC received an approved commitment last year from the Development Authority that it would provide bonds to finance the construction of the project.

According to the representative, that was passed by the Development Authority but then once work started on the project, the Development Authority and local officials did not hold up that side of the deal.

Stephens County Development Authority Executive Director Tim Martin said he cannot comment on the Holiday Inn project specifically.

The Development Authority did in May 2015, approve an inducement resolution for industrial development revenue bonds not to exceed $10 million for “Project Blue,” identified as a hotel/restaurant facility.

Martin said these inducement resolutions and industrial development revenue bonds are not used to guarantee financing and do not represent a financial commitment or obligation to pay for the project by the Development Authority.

Martin did say that these are a tool used to start the clock so that a developer can include development costs incurred after the date of this inducement resolution in his bond financing, but Martin added this tool is not in itself a guarantee of the Development Authority of any of the project financing.

According to Martin, the company must secure its own financing.

Both Sark Wire and Nifco KTW received similar inducement resolution for industrial development revenue bonds from the Development Authority as “Project Blue” has received.