Proposed Newport Hotel Scores State Incentives
A 150-room, six-story hotel planned as part of the expansion of Newport on the Levee won approval for state incentives on Wednesday.
Musselman Hotels, LLC asked the Kentucky Tourism Development Finance Authority for approximately $8 million in incentives in the form of a rebate based on sales tax generated over a 10-year period. The planned hotel is a $33 million project and construction could begin this summer.
The hotel is part of a larger expansion of the Levee where plans could also include new apartments. Hotel plans were announced in January.
The authority considers applications under the Kentucky Tourism Development Act, which allows eligible tourism attractions a rebate of sales tax up to 25 percent of project capital costs over a 10-year period.
Also approved on Wednesday were incentives for the Buffalo Trace Distillery in Frankfort will include a 6,000-square-foot expansion of existing visitor facilities, including additional meeting and event space, expanded tasting area and an enlarged gift shop. Total investment is projected to be $2.2 million. That project was deemed eligible for $550,000 in incentives.
The authority gave preliminary approval to Paducah Convention Hotel LLC for a 121-room downtown hotel and to Maker’s Mark Distillery Inc. in Loretto for expansion and renovation of its visitors’ center. This means that studies will be conducted to see if these applications meet the legal requirements for incentives.
Photo: Newport on the Levee