By Becky Pallack for Arizona Daily Star
The Tucson City Council moved forward Aug. 5 on a tax incentive deal for a new hotel near the University of Arizona.
Main Gate Partners applied for a site specific sales tax incentive, which gives a developer a 45 percent rebate on the site’s sales taxes and bed taxes for eight years.
To qualify, a project must show through an economic analysis that it can raise more revenue than the value of the tax abatement.
The city, state and other local taxing authorities can expect to gain about $16M in direct tax revenue during the eight years.
The $36.7M project is to build a new Marriott Residence Inn Hotel on Marshall Foundation property at the southeast corner of North Tyndall Avenue and East Second Street. It would have 213 rooms, a restaurant, meeting space, retail space, a rooftop pool and a parking garage. The top floor will house an exclusive club for faculty and alumni.
The council also advanced a Government Property Lease Excise Tax (GPLET) agreement with Bourn Cos. for a $3M renovation project to turn 20 E. Congress Street in downtown Tucson into a restaurant and offices for Bourn and for Samsung subsidiary SmartThings.
The council must give one additional approval, for the lease agreement, before the incentive deal is done.
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