Friday, November 8, 2013

Phila. controller releases study on W Hotel subsidy



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.

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