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
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