Boston will create a general fund for hotel financing to jump-start economic development in the City.
"Worried that tighter bank lending has stalled momentum on a half-dozen planned hotels, city officials are moving to provide 'gap financing' to speed up a few big lodging projects -- and boost the new Boston Convention & Exhibition Center in the process....Gap financing is needed because traditional lenders have been scaling back on financing for hotels, city officials and developers said." The mayor of Boston says that "the loan program would spur developments that would bring about 1,500 hotel rooms to Boston, add about $12 million in annual tax revenue, and create about 1,000 jobs." The city stands to gain from the investment, by using interest payments on loans for economic development in Boston neighborhoods. In addition, it would also reap about $6 million in linkage fees, which would be placed in the City's affordable housing trust fund.
Thanks to Connie Chung
FULL STORY: Key for new hotels

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Planetizen Federal Action Tracker
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