Post by Logan on Mar 7, 2017 4:50:10 GMT -6
2 developers asked Virginia Beach for taxpayer money to build Oceanfront hotels. How do the projects compare?
VIRGINIA BEACH -- In the past six years, two developers have pitched Oceanfront hotels in hopes of receiving sales taxes. One is poised to walk away with millions in incentives for the second time, while the other withdrew its application.
The developments getting or about to get taxpayer money are being built by Cavalier Associates LLC, which includes Bruce Thompson as a partner. The development team that withdrew its request for incentives for the Hyatt House includes NFL Hall of Famer Bruce Smith, who is one of 12 partners in the group.
The City Council is set to vote Tuesday on whether to give Cavalier Associates LLC an additional $6.5 million on top of $18 million that has already been approved.
One of the main qualifications for the incentives, which is also called gap financing, is proving that a development would fill a “void” in the area. But the City Council, despite multiple discussions on the topic, has not yet re-evaluated what constitutes a void in the tourism market. It established criteria when the program was created, but decided last year to take another look after the Virginia Beach Development Authority protested the Hyatt project and said the definition was too broad. At the time, Development Authority members asked the City Council to assess the qualification standards for receiving incentives.
Read more: pilotonline.com/news/government/local/developers-asked-virginia-beach-for-taxpayer-money-to-build-oceanfront/article_ec75e45d-75c4-5369-b52f-0d8bb7ca2278.html
VIRGINIA BEACH -- In the past six years, two developers have pitched Oceanfront hotels in hopes of receiving sales taxes. One is poised to walk away with millions in incentives for the second time, while the other withdrew its application.
The developments getting or about to get taxpayer money are being built by Cavalier Associates LLC, which includes Bruce Thompson as a partner. The development team that withdrew its request for incentives for the Hyatt House includes NFL Hall of Famer Bruce Smith, who is one of 12 partners in the group.
The City Council is set to vote Tuesday on whether to give Cavalier Associates LLC an additional $6.5 million on top of $18 million that has already been approved.
One of the main qualifications for the incentives, which is also called gap financing, is proving that a development would fill a “void” in the area. But the City Council, despite multiple discussions on the topic, has not yet re-evaluated what constitutes a void in the tourism market. It established criteria when the program was created, but decided last year to take another look after the Virginia Beach Development Authority protested the Hyatt project and said the definition was too broad. At the time, Development Authority members asked the City Council to assess the qualification standards for receiving incentives.
Read more: pilotonline.com/news/government/local/developers-asked-virginia-beach-for-taxpayer-money-to-build-oceanfront/article_ec75e45d-75c4-5369-b52f-0d8bb7ca2278.html