Chandler Area Economic Development Corporation offi cials have begun negotiating a deal to build a 31-room motel here, city administrator Jim Moffeit said. File Photo CHANDLER — Members of the Chandler Area Economic Development Corporation have begun negotiating with Raj Patel on an agreement to build a small motel here, city administrator Jim Moffeit said.

“He deals with mostly branded motels, and he also runs Executive Inns. He’s already working with Citizens State Bank and Southside Bank on financing. We’re in the negotiating process, but I believe it’s a deal we can work out.”

Patel owns and operates several motels in Texas, including in Gilmer, Longview, Pittsburg, and Lindale. Moffeit said Patel and city officials are discussing opening a 31-room Executive Inn that would create eight to 10 jobs.

“The city has a motel tax of 7 percent, and that would generate about $25,000 revenue for the city” in the Patel deal, Moffeit said. “We need more commercial taxpayers here, and this motel, to me, is just the beginning.”

Moffeit But Moffeit warned negotia- tions could take some time while EDC offi cials and Patel hammer out details on tax exemptions and other incentives.

“The board felt that most of what he is asking for is reasonable,” Moffeit said. “After some discussion and lengthy debate on what we need to do, the EDC appointed me, Ann Hall, and Gene Giger to try to negotiate with him on what he’s asking for so we can try to find middle ground.”

Moffeit chairs the EDC. Hall and Giger are City Council members.

Patel asked officials for an ad valorem tax abatement for the first five years of operations. On the sixth through ninth years, the tax would be applied at 20 percent, with a full reinstate- ment in the 10th year.

He also requested waivers on tap, meter, building permit, and inspection fees, and asked the EDC for a $50,000 cash incentive. Moffeit said that while officials find the waiver “reasonable,” the EDC is unlikely to grant a cash incentive at that amount.

“I’m sure we’ll give him something, but I don’t think it’s going to be $50,000. We have to put incentive money in a certain area, such as infrastructure. We just can’t hand him some cash.”

The tax-abatement request, Moffeit said, is a routine one.

But EDC officials want to consider whether to grant the abatement for 10 years or for a shorter term.

“We’re going to try to set up a meeting with (Patel) as soon as possible and then get back to the full board,” he said.

Patel did not immediately respond to an e-mail seeking comment.