With up to $50 million in annual subsidies at stake, the Colorado Economic Development Commission peppered applicants Thursday with questions but did not tip its hand on which of six tourism-related projects might end up with funding.
The EDC is expected to decide May 18 how it will disseminate the state tax incentives.
Commissioners at the hearing asked project representatives how they would use the state money, how they would finance the projects’ non-subsidized costs and if their proposed developments could go forward without the state funding.
Gaylord Entertainment, the largest of the six applicants, reiterated that it will not build a major hotel and conference center in Aurora near Denver International Airport without a state subsidy of $85.4 million over several years, even though the city of Aurora already has approved separate tax rebates of about $300 million for the $824 million project.
Under Colorado’s Regional Tourism Act, two projects a year can qualify for a total of $50 million a year in incentives.
Dick Monfort, chairman of the economic development commission, said he is weighing the economic benefits that the 1,500-room Gaylord hotel will bring against the potential damage it will cause to existing hotels by pushing room rates down.
“It’s not an easy deal because at least in the short term, there will be people hurt by this,” he said. “I’m not throwing water on you. I’m just saying it’s very difficult.”
In addition to Aurora, five other government entities have applied for incentives on behalf of proposed projects in their jurisdictions.
Douglas County is seeking incentives for an archaeological museum and sports complex; Glendale for an outdoor riverwalk entertainment complex; Pueblo for an expanded convention center and sports arena; Estes Park, to redevelop and renovate Elkhorn Lodge and build a year-round adventure park that includes snow sports; and Montrose County, which is proposing 141 tourism and commercial projects.
Like the Gaylord project, the Glendale riverwalk development will not be undertaken without state subsidies, Glendale representatives said at the meeting.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
