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.