Title
A RESOLUTION AUTHORIZING A LODGING TAX REBATE INCENTIVE FOR DIA ONEPEARL LLC
Body
Summary and Background Information:
City Council desires more commercial development, including hotels. Currently, there are no hotels operating within the city. Hotel developers are sharing that construction materials and labor costs have risen substantially over the last five years, greatly increasing hotel development and operating costs. Incentive programs that bring down development costs and help fill financial gaps are important to a hotel developer and/or operator and can often help move a project forward.
To help attract new hotel developments, City Council adopted the Commerce City Accommodations Lodging Tax Rebate Program (Resolution 22-48) on May 2, 2022. The program authorizes a full or partial rebate of the hotel and motel accommodations tax as an economic development incentive. This tax is a 4% city tax added to the price of renting a hotel or motel room in Commerce City for a time-frame that is less than 30 days and is in addition to the 4.5% city sales tax. City Council approves all city business incentives offered that are valued over $50,000.
A hotel development group named DIA ONEPEARL LLC is proposing a new Holiday Inn & Suites full service hotel at 18201 E. 81st Avenue in the NEXUS at DIA business park. The proposed hotel would have 100-110 hotel rooms and amenities such as a full bar and restaurant, business center, meeting rooms, pool, fitness center, guest laundry, and five electric vehicle charging stations.
Business incentive requests are presented to City Council during an Executive Session to discuss terms. An Executive Session is necessary so that other communities vying for a project aren’t given a competitive advantage by knowing what Commerce City is willing to offer in incentives for a project. A Resolution with incentive terms typically goes to City Council on consent agenda. Once an incentive Resolution is passed by City Council, sta...
Click here for full text