A five-year tax abatement for the Vision Hospitality at its downtown Doubletree Hotel was approved by the City Council on Tuesday night despite some opposition.
Some council members questioned why the tax relief was requested so late in the construction period.
Councilwoman Carol Berz, who abstained along with Russell Gilbert, said the tax break is meant as an "inducement" to spur new development.
Council Chairman Jack Benson said he wolcomes any such projects that can jumpstart the local economy. He said the economic pluses far outweigh the lost taxes.
The hotel will pay just the school portion of the property tax on the improvements for the five-year period.
Mitch Patel, Vision Hospitality owner, said it was the first time he has asked local government for help.
He said he paid over $7 million for the former Clarion at Fourth and Chestnut and planned to spend about that amount to renovate it. But he said due to such issues as mold and asbestos that the reworking of the hotel cost $20 million.
Mr. Patel said the Clarion had 30 employees and morale was low. He said the hotel was bringing in less income every year and was headed for foreclosure.
He said the Doubletree has over 100 employees and has been recognized as the top unit in the upscale hotel chain.
Councilwoman Debra Scott voted no. Supporting the request were Council members Benson, Manny Rico, Sally Robinson, Pam Ladd, Peter Murphy and Andrae McGary.