Megahotel Plans Pick Up Steam From State Funding Sources
- Mar 13, 2013
In recent years, Salt Lake City’s entrepreneurs and elected officials have recognized the value of developing a convention center and large new hospitality property. Often referred to as the “megahotel project”, the initiative has been picking up steam of late. Legislators have proposed new funding mechanisms to provide approximately $100 million worth of public financing toward the estimated $335 million cost, the Salt Lake Tribune noted.
The state Senate recently passed a measure to provide up to $32.8 million toward the project in annual $3.5 million increments. The funds would be used for land acquisition as well as the development of 85,000 square feet of meeting space.
The proposed 1000-key convention center hotel would produce as much as $600 million in state and local taxes over the next 30 years, theTribunereported.
Salt Lake City and Salt Lake County would supply the rest of the $100 million in public financing. Local authorities could redirect sales tax revenue to generate $67 million.
The city’s requirements stipulate that the project must be developed no more than 1,000 yards from the Salt Palace convention center in order to promote the city’s meetings and conventions business.
Image of the Salt Palace courtesy of user Mangoman88 via Wikimedia Commons