Ashland Alliance

Ashland commission approves payments to hotel developers

ASHLAND, Ky. — The Ashland commission agreed to move more than $80,000 in bond money to business developers as plans to turn the Ashland Plaza Hotel into a four-star Marriott-brand progress.

The city authorized four separate payments on Thursday to WB Hospitality, LLC from the Tax Increment Financing, or TIF, bond proceeds to reimburse for construction work.

A TIF program is a tool commonly used by local governments to generate funding for large-scale public redevelopment projects or incentive packages for business development.

A majority of the TIF payments made to WB Hospitality approved last week – $51,376.35 – is for WB Hospitality to reimburse a contractor, Precedence Inc., for elevator improvements and other work at the hotel.

The remaining TIF payments to WB Hospitality are:

  • $14,229 for an invoice from CTC Design Studio
  • $8,472.12 for an invoice from Ponder & Ponder, Architects for architectural work
  • $6,236.60 for a separate invoice from Ponder & Ponder

The bond payments are part of a $4.6-million incentive package offered to the hotel developers, who plan to invest more than $17-million to renovate and rebrand downtown Ashland’s most popular landmark.

In order to finance the incentive package, the city, along with the Boyd County Fiscal Court, created a TIF district in downtown Ashland called the “Ashland Plaza Development Area.” The district exists between 14th Street, Bath Avenue, 16th Street and Greenup Avenue.

READ MORE ON THIS STORY AT DAILYINDEPENDENT.COM

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