You asked for a summary of the $ 9. 5 million aid package for the construction of a Marriott Hotel at Adriaen's Landing and whether it is a grant or a loan. You also wanted to know if the Rhode Island Convention Center is running a financial deficit.

MARRIOTT HOTEL ASSISTANCE

The Connecticut Development Authority (CDA) is providing the $ 9. 5 million aid package for the Marriott Hotel. It consists of three parts: (1) $ 2 million CDA equity investment from the Connecticut Works Fund, (2) $ 5. 5 million CDA loan, and (3) $ 2 million in CDA-authorized sales tax exemptions.

The Waterford Group, LLC, the state-selected developer for Adriaen's Landing, plans to build and operate a full-service Marriott franchise hotel adjacent to the new convention center. The initial phase of the hotel will be 425 rooms, with a later phase adding 275 more.

CDA is investing $ 2 million of its own money in the hotel project. The money comes from returns on previous CDA investments that have been deposited in the authority's Connecticut Works Fund, according to CDA legislative liaison Emily Smith. The Connecticut Works Fund is used for equity or debt financing for economic development projects and job creation.

Smith said that CDA does not calculate a precise rate of return on its equity investments, but the authority generally expects a return rate of ranging from 10% to 20% over 15 years.

CDA is planning to loan Waterford $ 5. 5 million for hotel development. This represents 11. 7% of the overall borrowed capital for the hotel, Smith said. The loan will be paid back over 20 years with monthly payments beginning when the hotel is completed.

Waterford will receive up to $ 2 million in sales tax exemptions under CGS § 32-23h. This statute exempts authority property and projects from all local and most state taxes. Projects must make a payment in lieu of property or other local taxes (CGS § 32-23h).

RHODE ISLAND CONVENTION CENTER

According to the Rhode Island Convention Center Authority's (RICCA) senior financial official, the convention center and related facilities are generating about $ 5 million a year more than their operating expenses (not including debt service). Authority Chief Financial Officer Ted Przybyla said the $ 5 million in revenue after operating costs goes to help pay the $ 23 million annual debt service shouldered by the state.

The debt service is on three related facilities (1) the convention center, (2) the 2,400-space parking garage, and (3) the adjacent Westin Hotel. RICCA owns all three. Przybyla said, of the three facilities, the parking garage is the most profitable, generating $ 3. 5 million a year above its operating expenses.

JM: ts