Passed by lawmakers three years ago, the Regional Tourism Act offered state tax incentives to projects that were “unique and extraordinary.”
In selecting the 1,500-room Gaylord hotel and conference center in Aurora and a Professional Bull Riders’ University in Pueblo as of what could be as much as $50 million in annual state RTA incentives, the Colorado Economic Development Commission on Friday stayed true to the legislation’s intent.
We earlier this spring and are eager to see them proceed.
Because the legislation required a third-party analysis of projections, neither project received as much as backers sought in their original applications. But initial reports lead us to believe that the boosts being offered by the state are enough to keep the momentum going in both locales.
The next 120 days will be key, as developers work out details of the tax incentive deals.
Gaylord Entertainment sought $153.4 million in state incentives and was awarded $81.4 million for its Aurora property over the next 30 years.
Since Gaylord officials previously told us that their project could not go forward unless they received the entire state subsidy, we were encouraged by their initial response to receiving a lesser amount.
“We are excited about the greater Denver region and will review the overall viability of the project in its current form and structure given this decision, while at the same time preserving the enormous economic benefits that this project will bring to Colorado,” CEO Colin Reed said. “We look forward to working with the commission over the coming months to finalize the details.”
Given the public assistance on the table, Gaylord and Aurora, which agreed to put up $300 million in tax incentives, should be able to find a way to make the $824 million project work.
Backers of Pueblo’s proposal had hoped for nearly $33.5 million in state incentives and received $14.8 million over 30 years. Supporters of that project said it is enough to prime the pump on a modified plan that includes a convention center expansion and space for the bull riders.
Projects in Montrose County, Douglas County, Glendale and Estes Park that lost out on state subsidies must now go back to the drawing board.
That may not be the outcome their backers had hoped for, but it demonstrates the commission’s seriousness about sticking to the legislation’s call to subsidize only those projects that attract new visitors to the state.
The RTA allows for grants to be awarded to four more projects over the next two years.
We look forward to seeing new plans — or modified versions of those that failed — that are in the same “unique and extraordinary” league as those approved last week for Aurora and Pueblo.
