The $347 million starting point is the first public estimate on the hotel cost since Denver Mayor Wellington Webb decided last year that the it needed to be financed publicly, when Denver developer Bruce Berger was facing delays on sealing a deal for a privately financed hotel. Some City Council members now are saying either the 1,200-room Hyatt Regency should be scaled back or voters should be asked to vote on it.
The hotel, however, is considered essential for the success of the $268 million doubling of the Colorado Convention Center, which is under way. Also, even with the higher cost, the hotel - to be paid with bonds issued by a nonprofit corporation created by the City - is expected to be profitable. In the case the hotel doesn't generate enough revenues to cover the bond payments, taxpayers could see the hotel taken over by bond investors.
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