Title
Ordinance Endorsing the Element Hotel at Peninsula Town Center as a Qualifying Tourism Project Consistent with the Commonwealth of Virginia Tourism Zone Gap Financing Program, Authorizing the City Manager to Execute a Performance Agreement Designating Local Revenues Consistent with the Program for the Hotel, and Adopting the Hampton Tourism Development Plan
Purpose
PURPOSE/BACKGROUND:
The State has established a financing program (the Virginia Tourism Development Financing Program, hereinafter, the “Program”) for qualifying Virginia tourism development projects (hereinafter, “Project”). The Program enables localities to provide economic and regulatory incentives for Projects that are identified as critical to local economic development and are developed in partnership with developers, localities, financial institutions, the Virginia Tourism Corporation and the Virginia Resources Authority.
The Program can only be used for projects located in designated tourism zones, which must be created by ordinance designating the tourism zone’s boundaries and purpose.
On April 8, 2015, Hampton City Council adopted an ordinance establishing two tourism zones (Coliseum Central and Waterfront) which allows for Hampton to grant certain tax incentives to qualified tourism projects as authorized by Section 58.1-3851.1 of the Code of Virginia.
On March 22, 2017, Hampton City Council approved a Cooperation Agreement with the Economic Development Authority of the City of Hampton ("EDA") to provide sufficient funds to the EDA to make timely payment of grant incentives as set forth in the grant agreement executed by the EDA on May 18, 2017.
On May 18, 2017, the EDA executed an Economic Development Incentive Grant Performance Agreement with T Peninsula Hotel VA, LLC ("Developer") and agreed to assist the Developer in seeking tourism gap financing related to the development of a 120 room Element Hotel containing 1,000 square feet of meeting space.
In accordance wi...
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