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Kalahari Resorts trying to obtain another $10 million in tax-exempt financing
Date published: 3/30/2010
Kaine's office approved $112 million in RZF bonds for various projects across the state, including in Waynesboro, Norfolk, Richmond and Chesterfield. Like Kalahari. all those projects have to sell the RZF bonds by June 15 to qualify. Should other projects fail, it's possible that the office of Gov. Bob McDonnell might have additional RZF bonds to re-allocate.
Kalahari has made contact with McDonnell's office to discuss the project but a meeting has not yet been set up, said Stacey Johnson, the governor's press secretary.
Kalahari, which operates water park resorts in Ohio and Wisconsin, has struggled to obtain financing for the project, which would include a large hotel, an indoor water park and spa, restaurants and much more, including a conference center to connect to the Fredericksburg Expo Center.
The project would generate about $7.7 million a year in tax revenue for the city, though for the first 20 years nearly half of that would be returned to Kalahari through incentives the resort negotiated with Fredericksburg City Council. About 1,000 people would work there, according to the Fiscal Impact Statement that Kalahari submitted to the EDA. Average pay would be $45,000 a year for salaried employees.
The Fiscal Impact Statement is available at blogs .fredericksburg.com/businessbrowser.
Bill Freehling: 540/374-5405