The $11.5 million project qualifies for a $2.55 million incentive tax rebate
FRANKFORT, Ky. (Dec. 10, 2014) — The Kentucky Tourism Development Finance Authority today approved incentives for a 105-room hotel development in Somerset.
Somerset Center Hotel plans to develop a Courtyard by Marriott adjacent to the Center for Rural Development. The $11.5 million project qualifies for an incentive of $2.55 million in the form of a tax rebate over 10 years.
A consultant’s report on the Somerset project found that it met the requirements necessary to receive incentives. This includes meeting a minimum expenditure requirement, being open more than 100 days a year, attracting at least 25 percent of visitors from outside the state by its fourth year of operation and having a positive net economic impact on the Kentucky economy.
The proposed hotel will have an indoor pool, business center and reception area. It will be within walking distance of the Center for Rural Development.
The Kentucky Tourism Development Finance Authority also approved to two other projects:
- Jim Beam Brands Company, for an entertainment facility that will be part of Fourth Street Live! In downtown Louisville. The $5.2 million project is eligible for up to $1.3 million in incentives.
- Peristyle, the developers of an entertainment facility at the Old Taylor Distillery in Woodford County. The $6.8 million project is eligible for up to $1.69 million in incentives.
With preliminary approval, a consultant will review these applications to see if they meet the legal requirements for tourism incentives.
The authority considers applications under the Kentucky Tourism Development Act, which allows eligible tourism attractions a rebate of sales tax up to 25 percent of project capital costs over a 10-year period. Projects must meet certain criteria to be eligible, such as having a positive economic impact for the Commonwealth and attracting at least 25 percent of guests from out of state. The rebate is based on sales tax generated by the tourism attraction.