Frankfort, Ky - The Kentucky Tourism Development Finance Authority has approved incentives for the 21c Museum Hotel in Lexington.
The 90-room project in the old First National Building and Fayette Building has a budget of $42 million. The hotel could be eligible for an incentive of up to $9 million over 10 years.
The authority heard a report Monday from Hunden Strategic Partners, the consultant hired to review the application for 21c, based in Louisville.
The net fiscal impact to Kentucky is projected to be more than $10.6 million over the 10-year term.
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.
The Kentucky Economic Development Finance Authority recently approved the creation of a state tax-increment financing district near the hotel site. These incentives could be worth as much as $500,000 over the 20-year term of the deal.