AURORA | Despite being embroiled in legal controversy, the Gaylord Rockies Hotel and Conference Center could bypass a legal quagmire dragging on and break ground by the end of next year with significant financing from Houston-based RIDA Development Corp.
On Monday, Aurora City Council, acting as the Aurora Urban Renewal Authority, unanimously and with no comment approved a resolution that supports Houston-based RIDA Development Corp. financing the construction of a project, which has been estimated to cost upwards of $800 million. The issue was also discussed in an executive session closed to the public before the council meeting.
According to city documents, a lawsuit filed against the Gaylord project by two Aurora residents that is pending in Adams County District Court was created by “a cartel of 11 eleven hotels” who “secretly financed” it. Those residents claim the Gaylord project violates Colorado’s tax restriction laws.
Those same 11 mostly-Denver hotels were unsuccessful with a lawsuit filed in Denver District court in 2013 that asked the state reconsider $81 million pledged to the project under the Regional Tourism Act because it changed substantially since the incentives were awarded in 2012.
According to city documents, the lawsuits have “already caused substantial damages to the City, the Authority, and Rida in the form of increased costs, risk and delay.”
Under the Regional Tourism Act, or RTA, significant progress must be made on the project within five years, or the money can be taken away. Aurora is heading into its third year with the Gaylord Hotel project using RTA money.
The resolution goes on to explain that Rida will be reimbursed by the Aurora Urban Renewal Authority “to the extent possible” from future tax increment financing money when the hotel and conference center are open. It continues that Rida “will temporarily waive its rights to payments under the Incentive Agreement” in order to mitigate the harm caused by litigation. The move essentially sets aside some of the potential tax revenues to be diverted to the project, at risk should the Denver hotel-backed lawsuit prevail. City officials have said repeatedly they’re confident Adams County will rule in their favor.
With 1,500 rooms, the Gaylord hotel would be the biggest in the state. The proposed project, which will be located near Denver International Airport, also includes plans for a 400,000-square-foot conference center and a water park.
“This is reaffirming the City of Aurora’s commitment to an important regional project,” said Wendy Mitchell president of the Aurora Economic Development Council about the resolution.
Mitchell said with the financing move from Rida, the hotel would be able to break ground by the end of 2015.
If it makes business sense then they can build without taxpayer monies.
The Aurora City Council doesn’t WANT or seem to
need comment from anyone on anything lately.
As long as the citizens allow this total disrepect
for their opinions on huge spending, they will continue to do as they please, and who
could blame them?
They never build without tax payer money. Investing $800 million? Taxpayer gonna get bit. Look at VA hospital.