An amendment to the development agreement for Hotel Maytag in downtown Newton will be brought before the Newton City Council tonight. If approved, Hotel Maytag Developers LLC would be granted a sliding scale tax rebate on the difference between the property’s current valuation of $3,316,000 and the minimum assessment amount of $2,300,000. 

Newton City Administrator Matt Muckler says the proposed change would mean the city would pay Hotel Maytag Developers LLC an additional $150,000 in TIF Fund tax rebates between Fiscal Years 2025 and 2031. He says the original development agreement did not take into account a scenario where the actual valuation of the property exceeded the minimum assessment.

Muckler and the City of Newton’s Community Development staff are recommending the City Council approve the development agreement amendment. They believe the continued success of Hotel Maytag impacts Newton’s downtown. They also say the additional tax rebates will provide necessary support as new management addresses longstanding maintenance issues and financial losses that have occurred since the renovation project was completed in the summer of 2019.

Tonight’s Newton City Council meeting begins at 6 p.m. at Newton City Hall.