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Wed October 10, 2012
Council Supports $1 Million Loan to Hotel Developers
LEXINGTON, Ky. - One million dollars in city money will be loaned to the developers of the proposed 21c Museum Hotel in downtown Lexington.
Members of the Lexington Urban County Council made an initial vote Tuesday to approve the 10-year, no interest loan after hearing proposals on how to use Urban Development Action Grant funds. Jeff Fugate of the Lexington Downtown Development Authority says money put toward the 21c project will create 150 jobs and have a future impact.
“It’s the city’s contribution. It gets it off the ground, but then it comes back to the city. So we get it back, and in ten years or less we have the money to put back into the next project. So it’s a way that we keep the capital flowing in the community and bring it back to the city.”
Officials with 21c announced plans in April to open a Lexington hotel at the historic 1st National/Fayette National Bank Building on Main Street. In addition to the city's loan, the $36 million project is also relying on a $14 million construction loan, a $6 million HUD loan, tax credits, and tax increment financing.
Other organizations and projects were also hoping to get some of the urban development funding, including the Senior Citizens Center, the Lexington History Museum, and the Living Arts and Science Center.
After the one million dollar loan is issued, about $130,000 in grant money will remain.