St. Joseph City Commissioners have set a public hearing for December 9 to discuss a possible tax abatement for a boutique hotel project downtown.

During their regular meeting this past week, commissioners heard from Andrew Haan of Cornerstone Alliance, who told them about the state’s Obsolete Property Rehabilitation Act. It’s just one more way to freeze the taxable value of a parcel for a period of time so the owners can recoup an investment in it. In this case, Shannon Kutchek and John Kenna are planning to turn the building at 500 Main Street into a six-room hotel.

“An obsolete property includes blighted or functionally obsolete property,” Haan said. “This would fit under that functionally obsolete definition. It was built as a library. It’s not functional as a library anymore, so the assessor has determined that it is obsolete.”

Haan said the project would mean a few jobs and some new economic activity in the area.

“In this case, you’re talking about people that are going to be coming and staying in this hotel and spending money in downtown and beyond.”

Commissioners in February approved a rezoning for the parcel to make way for her boutique hotel.

Haan said Monday the owners have searched for tax abatements for which they might qualify, and this is all they found. He said commissioners would first have to create an Obsolete Property Rehabilitation Act district, which could only include the one property, and then consider allowing a tax abatement for up to 12 years.

The first step toward approving a tax abatement for the hotel will be that public hearing, now set to take place at the commission’s first meeting in December.