SUBSIDY REJECTED; HOTEL PROJECT PRESUMED DEAD; TASK FORCE ORDERED

A LIVE-TWEET REPORTING OF THE CITY COUNCIL MEETING ON MAY 22, 2017, IN WHICH CITY COUNCIL RE-CONSIDERED GIVING A PUBLIC SUBSIDY TO THE KHP PROJECT.

BACKGROUND: As part of its original submittal in 2013, KHP proposed to pay to the City a required lease payment of at least $300,000 per year.

KHP claims that their costs have increased to the point of unprofitability and requested two economic subsidies:

1. No lease payments for the land and the YWCA building, and
2. No charge for parking, City to dedicate 136 parking spaces out of its existing garages, for free.

NOTE:  ALL STATEMENTS ARE PARAPHRASES CAPTURED LIVE, NOT WORD-FOR-WORD QUOTES.

On April 3rd, the Council "paused" and gave KHP additional time to present more information or refine the project.  KHP provided some additional information about costs but continued to insist that a subsidy is needed to continue with the project.

4 hrs