The development of a new downtown hotel will support a number of new employment opportunities, from hotel corporate jobs Phoenix to retail positions to construction roles.
Earlier this year, the Phoenix Community Development and Investment Corporation approved a tax credit that will allow RED Development to build the new Kimpton Palomar Hotel at CityScape, creating thousands of new jobs along the way.
RED will receive $34.3 million in tax exemptions from the New Markets Tax Credit Program, which provides companies and organizations with commercial real estate loans that are below market rate in an effort to encourage neighborhood revitalization.
"CityScape is creating thousands of construction jobs, opening retail, restaurant, entertainment and office doors and attracting thousands of long-term sustainable jobs," Mayor Phil Gordon said in a statement. "This loan fills a financing gap that allows CityScape to deliver on a promise of sustainable jobs, future growth and expansion."
The new hotel is part of the second phase of the CityScape project in downtown Phoenix. City officials and many businesses have invested almost $500 million in that project so far.
"Projects like the Kimpton Palomar Hotel demonstrate our commitment to serve by creating jobs and revitalizing downtown, which is located in one of the poorest census tracts in Maricopa County," Jerome Miller, deputy city manager and chairman of PCDIC, said. "With our New Markets Tax Credit allocation, the PCDIC board is working with our investor partners to create economic opportunities for under-served communities in Phoenix by providing below market rate commercial real estate loans."
As part of the tax credit agreement, RED will offer a $1 million endowment to benefit low to moderate-income students who are pursuing four-year degrees at accredited universities, as well as the recruiting efforts of construction subcontractors.
The following projects also have received funding under the NMTC program:
- Riverside Industrial Center - $44.5 million
- Spectrum Mall - $37.5 million
- Arizona Bridge to Independent Living - $16.5 million
- Native American Connections - $6.1 million
- Hacienda Skilled Nursing Center - $6 million
- YMCA - $6 million
- Clarendon Hotel - $4.2 million
- Phoenix Rescue Mission - $4 million