Responding to appeals from an array of construction unions, the Los Angeles City Council on Wednesday approved a $67.3-million subsidy for a new downtown hotel across from L.A. Live.
The council voted 10 to 1 to provide developers of a 23-story Marriott complex on Olympic Boulevard a tax rebate equal to half of the revenue — from sales taxes, property taxes, parking taxes, business taxes, utility taxes and room taxes — generated by the project over 25 years.
That money will flow to the developers, Williams/Dame & Associates and American Life Inc., in the form of a hotel tax rebate, said Chief Legislative Analyst Gerry Miller. Those taxes normally go to the general fund budget, which pays for basic services such as police officers and firefighters, said Assistant City Administrative Officer Ray Ciranna.
The deal drew criticism from representatives of the Westin Bonaventure, six blocks north of Olympic Boulevard, who said the subsidy would put existing downtown hotels at a competitive disadvantage.