State will not audit Aurora Gaylord Hotel project tax incentives

DENVER | The state Legislative Audit Committee agreed Monday not to have the state auditor’s office look at how Regional Tourism Act money has been awarded to statewide projects, including Aurora’s Gaylord hotel and conference center. They decided instead to hold a meeting in June with members of the Colorado Economic Development Commission, the department responsible for awarding the competitive tourism incentive money, to learn about the department’s process for choosing projects.

All of the committee members agreed the audit would not do much, given that it wouldn’t even be completed in time to be applied to two more projects that will either be approved or denied by Colorado Economic Development Commission in October. Those projects are part of the third and final round of RTA funding. 

“Since we’re so late in this RTA (Regional Tourism Act) process, and the audit won’t be complete before these next projects are awarded, I’m not sure what the value of this would be,”said  Rep. Dianne Primavera, D-Broomfield.

In March, the committee voted to allow State Auditor Dianne Ray to put 40 hours of staff time toward RTA research, with many members questioning the validity of the $80 million awarded to Aurora’s delayed Gaylord project through the program because the details of the project had changed. They cited the project switching hands after being awarded the incentive money as a reason for looking specifically into the Aurora hotel’s award.

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.

Aurora city officials said the decision not to pursue an audit was a victory for the delayed Gaylord project, which has been involved in a lawsuit with 11 mostly Denver hotels since 2013, and a lawsuit filed by two Adams County residents last year. 

“This decision combined with our success in the courts, makes the targeted 4th quarter groundbreaking for Gaylord even more likely,” said Aurora Mayor Steve Hogan. Earlier in March Hogan told the Colorado Economic Development Commission the project would break ground sometime between October and December of this year.

Denver Democratic Senator Lucia Guzman,  who chairs the committee, said she was still concerned about not having a better understanding of the RTA award process. 

“I’m really torn on it as we’ll because what we’re talking about is really the people’s money,” she said. “We’re talking about millions and millions and millions of dollars.”

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.

Two projects still awaiting approval or denial for state tourism tax incentive funds include a new facility for the Denver Western Stock Show and an events tourism project near Fort Collins.