DENVER | The Colorado Auditor’s Office will look at how Regional Tourism Act money has been awarded to statewide projects, including Aurora’s Gaylord conference center project, and what the state might audit in a project that has received money through the competitive state incentive program.
“We would be looking at the Regional Tourism Act in its entirety, and the different grants that they’ve made, including the Gaylord grant,” said State Auditor Dianne Ray when asked if the research would focus on specific RTA projects or all of them.
The State Legislative Audit Committee voted Tuesday to allow Ray to put 40 hours of staff time toward RTA research. State Rep. Su Ryden, D-Aurora, was the dissenting vote on the committee, with the measure passing 7 to 1.
Aurora’s delayed Gaylord project has been the subject of recent inquiry by some state officials, prompting charges from Aurora officials that politics and Denver hotel competitors are part of a scheme to kill the massive hotel and conference center.
“I’m very concerned about the Gaylord project and whether it’s being singled out for some reason unknown to us,” she said. “ I’m concerned about getting involved in a process where contracts have already been signed, sealed and delivered.”
In her comments to the committee, Ray said she was concerned with projects where “entities have changed hands.”
“I’m not going after any particular Gaylord project, I’m looking at the way in which the office that handles this act operates, and how those decisions are made and how that if there are some problems there or there is something we need to update,” she said.
In May 2012, the Colorado Economic Development Commission approved a tax incentive package for the 1,500-room Gaylord hotel and conference center worth $81.4 million over 30 years. Weeks after the Colorado Economic Development Commission awarded the project state tax incentives, Marriott International Inc., bought the Gaylord Hotels brand and took over the project. Then in 2013, RIDA took ownership of the $850 million Western-themed hotel and conference center with Marriott maintaining a role as the hotel’s operator.
Sen. Cheri Jahn, D-Wheatridge, said she needed to learn about the RTA process and the Office of Economic Development and International Trade, the department responsible for awarding the money, before considering an audit.
“I’m not sure that they (OEDIT) did do something or didn’t do something because I’m not sure what processes they go through,” she said.
Other committee members said they wanted to meet with OEDIT members before conducting the research as a way to learn about the RTA funding.
Aurora economic development officials and officials from the state’s economic development office have maintained that every decision was made after lengthy public hearings, and upheld by district court scrutiny.
Mayor Steve Hogan said last week this is just the latest in a long line of schemes critics of the project have used to try and scuttle Gaylord. He and other Aurora officials have prompted a statewide effort to contact lawmakers to push back against what they say are Denver business and political interests to prevent large-scale outside projects like Gaylord.
Statewide, other construction and city officials are concerned that state intervention in the RTA could disrupt billions of dollars in other incentive projects. Denver is hoping for a large incentive grant next year to rebuild its flagging Western Stockshow facilities and program.
Some state lawmakers said their concerns are valid.
“I don’t want to be opposed to this research but I think it is a characteristic of this committee that it isn’t a political vehicle,” said Sen. Chris Holbert, R-Parker. “To move forward on the RTA, I would very much appreciate hearing their perspective back and identifying, is there just one decision that’s of concern or are there others?”
State Treasurer Walker Stapleton, whose elected role in state government is to guide and monitor state tax investments and oversee the state’s public employee pension program, inserted himself into the Gaylord project a few weeks ago, asking developers and Aurora City Officials about the validity of Gaylord’s RTA award. That letter followed an Adams County district court ruling that said Aurora held an invalid election to create a special tax district around the future hotel project.
Denver Democratic Senator Lucia Guzman, who chairs the committee, said she became interested in how Aurora was awarded the money for Gaylord after receiving a letter from Stapleton.
“I’m not sure any law was broken,” she said in reference to Gaylord changing hands weeks after Aurora was awarded the RTA. “It may be the statute isn’t clear about what one should do when that happens. Sometimes audits help us redefine or revamp a law that might tighten up some things.”
She said if the committee does decide to proceed with an audit, it would likely take 10 months. The committee will meet again March 30, its last meeting of the 2015 Legislative Session.
Three statewide projects have been awarded money through RTA that include Gaylord. In 2012, $24.7 million was awarded to the City of Pueblo for a convention center. Colorado Springs has received the most RTA money at $121 million in 2013 for its City of Champions sports and events center.