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Williamsburg News – Economic Development

Posted on: October 12, 2023

Economic Development Authority Awards Incentive Grant to Boutique Motel

The City of Williamsburg Economic Development Authority voted unanimously at its meeting Oct. 11 to award a revenue sharing incentive to a boutique motel. 

A recent City-commissioned hotel feasibility study found that Williamsburg has the current and future demand to support the development of new hotel product, which guided staff’s recruitment efforts. 

The Rochambeau, located at 929 Capitol Landing Road, will be a fully renovated, 22-room boutique motel. The awarded incentive grants a percentage of the taxes that The Rochambeau will pay to the City over a five-year period, making it a performance-based revenue sharing agreement. 

The revenue-sharing incentive for The Rochambeau is capped at $99,000 and will be used for exterior improvements to modernize the building.

Owner Lyle Schiavone is a developer with extensive experience in multi-family apartment communities across Virginia, Maryland, and Washington, D.C. 

“Having grown up in Williamsburg, I have been eagerly looking for a project that could really have an impact. Williamsburg’s support and excitement for this redevelopment project is critical for us to carry out our vision of a revamped hospitality concept. We very much look forward to growing our partnership with the City and local stakeholders.”

The EDA will award the incentive to The Rochambeau over time, after the business pays its local sales and room taxes. The local sales and rooms tax return on investment to the city for the first five years of the business’ operations is estimated at more than $200,000.

“The City of Williamsburg’s revenue sharing program for businesses has successfully drawn in new business and helped existing businesses expand, providing new revenue to the City as those businesses grow,” EDA Chair Adria Vanhoozier said. “The City retains a portion of taxes that would not have been collected without the new business opening in our community.”

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