The city then enters into a contractual relationship with the new entity, further defining service to be provided by it on behalf of the city.
One of the primary reasons to create an independent public hotel corporation is that any debt issued by the corporation will be considered a debt or obligation of the city and county of Denver, he notes.
"Also, given the unique nature of constructing and operating a hotel (as contrasted with more traditional functions), the city is motivated to create a separate and independent governance structure to oversee this highly specialized function," according to Broadwell.
He notes Denver has a long history of creating independent corporations to perform specialized public services on behalf of the city. They include the Winter Park Recreation Authority, the Denver Health and Hospital Authority, the Lowry Redevelopment Authority and the Stapleton Development Corp.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
