City Controller Alan Butkovitz supports a tax-increment
financing proposal that is being considered for the construction of a W and
Element hotel at 1441 Chestnut St. in Center City — but has reservations on
some parts of an analysis done on the project.
The city controller conducted his own study, using data and
information provided by the Philadelphia Industrial Development Corp.,
and concluded that the hotel would have many benefits including:
Creating jobs in the construction and service sectors.
Producing a “marquee” hotel that would help meet demand from
the Pennsylvania Convention Center
Generating long-term revenue, which
outweighs the short-term revenue costs.
However, Butkovitz said in a statement that he has
reservations regarding PIDC’s wage tax revenue projections, which he said seem
“optimistic,” and questions the number of permanent jobs that will be created.
To see Butkovitz's analysis, check out the study here.
He urges the administration to conduct another study of the
projections before making any final decisions.
The developer of the $280.4 million project is seeking to
receive $33 million in tax increment financing as well as other subsidies to help finance the project. In
all, it would receive $75 million in public funds. The proposal has upset many hotel owners
Philadelphia.
A hearing is scheduled for today on the tax increment
financing, or TIF, proposal.
Source: Philadelphia Business Journal
No comments:
Post a Comment