21c Museum Hotels secures 10-year $9 million tax incentive for Kentucky project

George Sell George Sell Uploaded 19 December 2012

LinkedIn

US: A proposed 21c Museum Hotel in downtown Lexington has received approval for up to $9 million in state tax incentives.

The Kentucky Tourism Development Finance Authority, which oversees tax credits for tourism and film-related projects, approved the sales tax credit for the 90-room hotel planned for the former First National Bank building.

To be eligible for the tax rebate, a project must cost more than $1 million, be open more than 100 days a year and attract at least 25 per cent of its visitors from out-of-state by its fourth year of operation. The rebate is based on sales tax generated by the property.

In October, Lexington's Urban County Council approved a $1 million loan for 21c to be repaid over 10 years. The hotel has also applied to the city for a $6 million federal Department of Housing and Urban Development Section 108 loan, and to provide a $5.8 million tax-increment financing plan.

It will also rely on a $14 million loan from Central Bank and federal historic and new-market tax credits. Work will start on the building next year, ahead of a 2014 opening.

www.21cmuseumhotels.com

LinkedIn

Be in the know.

Subscribe to our newsletter »
Subscribe

Thank you sponsors