Hotel Impact Mitigation Fund

Hotel Impact Mitigation Fund GOED administered version one of the Hotel Impact Mitigation Fund beginning on Aug. 16, 2023, and ending on March 21, 2025 — the effective date of SB 26 Housing and Transit Reinvestment Zone Amendments, 2025 Utah General Session (Harper). Hotel Impact Mitigation Fund version two begins on May 5, 2025, for qualified losses for city-wide events. A qualified hotel to receive funding will need to: Supply baseline information Apply and enter into a contract Submit a claim to receive funding Key definitions of the program are: “Qualified Losses” means revenue that an affected hotel loses for city-wide events attributable to the Grand Hyatt's addition to the market. “City-wide events” means an event hosted at a convention facility under a contract by a nonprofit corporation responsible for promoting convention business using at least 100,000 gross square feet in the convention center and 1,500 or more guest rooms. Visit Salt Lake, a nonprofit corporation, provides this information. GOED will supply a list of city-wide events eligible to be considered during the baseline and claim years. To apply for a contract: Applicants will be reviewed for qualification and enter into a contract with GOED, under which they will receive a portion of the $2.1 million available funds. Funds are made available for version two on an annual January through December reporting and award cycle. Qualifications: Must be a hotel built in Utah before July 1, 2014 Located within one mile of the Hyatt Regency Salt Lake City (Hotel Convention Center), located at 170 South West Temple, Salt Lake City, Utah 84101 Able to demonstrate consistent and measurable total yearly average daily rate and yearly number of room nights for city-wide events, as provided by the GOED office for: Three 12-month annual periods of 2017, 2018 and 2019 The 12-month period from Jan. 1 to Dec. 31 in future calendar years, in which the affected hotel will claim losses Senior management attests to the accuracy of information Has not ceased operations during the application period Timing requirements: Applications will be received on a rolling basis from May 5, 2025, to Dec. 31, 2026. To be considered for loss evaluation, an eligible hotel must apply to enter into a contract with GOED by Dec. 31 of the claiming year. Before submitting a claim, a baseline calculation of city-wide events from Jan. 1, 2017, through Dec. 31, 2019, must be approved. Claims for 2024 must be submitted by May 30, 2025, for award consideration shortly after June 1, 2025. For 2025 and 2026 claims, claims for each 12-month period must be submitted by Feb. 15 following the close of the claim year. Late or prior-year submissions will not be accepted. GOED will review claim documentation and provide an award notice on or before Feb. 28 for calendar year 2025 and 2026 claims. To apply for a claim: Affected hotels may file a claim after entering into a contract and receiving written baseline approval. Hotels that have entered into a contract will be provided a portal to file a claim at the end of December. A claim must be received on or before Feb. 15 for the prior year’s claim. Calculation of claims: The claim amount is the revenue lost from a claim year from city-wide events in comparison to the baseline. The baseline information on the three-year average of room nights and a three-year average of average room night revenue will be used to determine if qualified losses occurred when compared to the same information for a claim year. Loss will be determined by the difference between the baseline three-year average of room nights and current room nights, multiplied by the annual group rate. The state will apply a proration to award $2.1 million.