Mesa, AZ hotel site is happily found “slum and blighted”
Developers planning a hotel and convention center near Phoenix-Mesa Gateway Airport in Mesa, Arizona were counting on the future site being designated “slum and blighted”—a designation that brings with it valuable tax breaks to support redevelopment. And things have gone their way.
The City Council unanimously approved the designation last week, finding that asbestos contamination and other environmental problems at the sight justified calling it “slum and blighted.” An estimated $17 million will be required to cover the environmental cleanup costs.
After the asbestos and other environmental contamination has been addressed, the property will be developed by the Gaylord Entertainment Co. of Nashville, Tenn. into a minimum 1,200-room family resort and one of the largest convention centers in the state. The company has developed similar properties in Florida, Texas and Washington, D.C. and expects to invest a total of $1 billion into developing the 3,200 acre property.
There will be a public vote in March on additional tax incentives that have been planned for the project. It has been reported that the City has received dozens of letters of support for the proposition and no letters of opposition. Although the City gives up revenue through the sizeable tax breaks, Mesa anticipates that it will take in at least $70 million in fees and sales taxes as a result of the hotel and convention center projects.
For more information, see the following stories from the East Valley Tribune:
‘Blighted’ title for hotel site sought
Mesa council OKs designation for Proving Grounds
Support pours in for Proving Grounds proposition
