CENTER CITY could soon see the addition of two new high-end
hotels.
A City Council committee yesterday paved the way for a
controversial $33 million tax break for the hopeful developer, Brook Lenfest's
Chestlen Development, who wants to put a W Hotel and an Element on the parking
lot at 15th and Chestnut streets.
Supporters say the 700-room project would help the
struggling Pennsylvania Convention Center, which reports having issues booking
two shows at the same time due to a lack of hotel rooms in Center City. The
developer will invest $205 million.
A group of local hotel owners are fighting the measure,
known as Tax Increment Financing, or a TIF, arguing that demand for that many
hotel rooms isn't there and that the new hotels will cannibalize their
business. They pointed out that convention venues across the country have
expanded significantly in recent years, although the number of conventions has
increased only slightly.
Many of those hotels were built using TIFs as well.
The bill passed only after being amended to include a
"labor-peace agreement," which guarantees employees the right
unionize.
Mayor Nutter and Council President Darrell Clarke support
the TIF, along with Councilman Bill Green, who chairs the committee.
Councilman W. Wilson Goode Jr. spoke in opposition of the
measure yesterday but didn't stick around for the final vote, which followed
hours of testimony from both sides.
Source: Philly.com
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