Fredericksburg project to be first using new tourism financing program
- June 20, 2012
A hotel and mixed-use development in Fredericksburg will become Virginia’s first project to use a new tourism financing program.
The Virginia Tourism Development Financing project, passed into law last year, allows local tourism projects to retain a portion of local and state sales tax with a matching grant from the developer to provide gap financing for up to 20 percent of the project’s cost.
The Eagle Village project will include a five-story, 96-room Hyatt Place hotel, 1,500 square feet of meeting space and 6,000 square feet of retail space. The University of Mary Washington Foundation is spearheading the project. The City of Fredericksburg and the Fredericksburg Economic Development Authority are supporting partners.
The project is expected to generate $3.27 million for Fredericksburg over 10 years and is expected to create more than 55 jobs.
“The combined incentives between the City of Fredericksburg and the Commonwealth of Virginia made the development of our Hyatt Place hotel possible and will meet all of the objectives set forth by Governor [Bob] McDonnell including the creation of over 55 new jobs and increased tax revenue for both the locality and the state,” Jeff W. Rountree, CEO of the UMW Foundation, said in a statement.