The City of Avoca is expecting a new hotel to be constructed at the Highway 59 and Interstate 80 interchange. According to the Avoca Journal-Herald, the Avoca City Council Tuesday approved an incentive agreement with Cobblestone Hotels for a 40 unit hotel. The project is estimated to have $2.5 million taxable valuation for the city. The company has shown interest in the past to build on the location but was unable to acquire a site.

The paper says  the hotel group has a purchase option on the site and has committed financing to the project. The city council incentive will have Cobblestone Hotel a minimum of $2 million in taxable value which in turn will generate $68,000 in annual property tax. The hotel will also bring in between $27,000 and $35,000 in hotel-motel tax revenue.

The agreement between the city council and Hotel Company allows the hotel to be eligible for additional tax rebates for the first six years. The hotel is expected to be completed in 2014.