Town reaffirms $1.5 million funding pledge for Hotel Avery
TRUCKEE, Calif. and#8212; In an effort to avoid unforeseen complications with the town’s soon-to-be-dissolved redevelopment agency, Truckee Town Council last week reiterated a promise to contribute $1.5 million to the Hotel Avery development.
At last Thursday’s meeting, town council gave staff the OK to enter into a memorandum of agreement with JMA Ventures, the hotel’s developer. The memorandum reassures JMA of the town’s intention to provide a grant of $1 million and a loan of $500,000 for the project, with the funds coming from the town’s redevelopment agency.
The money will be used to build sidewalks, create river access points, reroute infrastructure and install other public access and use facilities.
The memorandum comes shortly before redevelopment agencies across the state will be abolished on Feb. 1 as a part of Gov. Jerry Brown’s controversial budget redistribution measures. The decision is causing a genera sense of uncertainty among the redevelopment arena.
Support Local Journalism
According to a story in Wednesday’s Sun, while the state has prescribed a loose plan for dismantling the agencies, Town Attorney Dennis Crabb said the process is in constant flux, and it’s unclear what the future holds for redevelopment funds.
If redevelopment funds are available and financing proceeds as planned, JMA Ventures will repay the $500,000 loan over time by collecting a 2 percent fee added to the nightly room rate at the hotel. The town will recoup grant money at an estimated rate of $170,000 a year through property taxes imposed on the hotel.
Should redevelopment funds become inaccessible, the town will be able to fulfill the agreement through alternative avenues, staff said.
However, until JMA can assure completion of the hotel, the town will not distribute any funds, said Town Manager Tony Lashbrook.
JMA Executive Vice President David Tirman said the company is currently discussing construction financing with local banks. He said he hopes to have a resolution within the next few months and have the project shovel-ready by early fall.
Support Local Journalism
Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Your donation will help us continue to cover COVID-19 and our other vital local news.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User