The city is considering a move to financially back a 130-room Marriott hotel at WaterWalk, if the move doesn't have a negative financial impact on the city-owned Hyatt Regency nearby.
Under the move, which council members are scheduled to vote on Tuesday, the city would provide up to $2.5 million in guest tax revenue to help pay for construction and it would offer $12 million in industrial revenue bonds to make the venture tax exempt.
That exemption is worth about $329,000 to the developer, according to city reports.
The hotel would be built by Four-G, LLC, which is owned by Jim Korroch who has developed and owns the Courtyard by Marriott Hotel in Old Town and the Residence Inn and the Springhill Inn and Suites hotels in the Plazzio development at 13th Street North and Greenwich Road.
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The proposal includes a city-commissioned market study to see what impact the new hotel would have on the nearby city-owned Hyatt Regency Hotel.
City Manager Robert Layton said Friday morning that the WaterWalk deal won't happen if the study shows a negative impact on the Hyatt.
"We cannot jeopardize the city's investment in the Hyatt," Layton said. "It's extremely important to us."
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