The city of Vancouver has transferred $1.7 million in lodging tax revenues to replenish the hotel/convention center operating and capital reserves.
The payment resulted from an amount due that had been accruing on debt linked to the construction of the 2003 project, the city said. No city general funds were used for the payment.
“Lodging tax reserves were built up previously during strong economic times so the city would be prepared to meet its obligations to the hotel/convention center during weak economic times,” said city of Vancouver Chief Financial Officer Lloyd Tyler in a press release. “A potential scenario like this was contemplated when the financial structure was put in place in 2003, and funds have been accumulated to make this payment.
“We have learned a lot from the Great Recession and the collapse of the real estate market,” he added. “Today, we are much more conservative about long-term financing deals. Our economy has fundamentally changed.”
Read the city of Vancouver’s press release for more information on the hotel/convention center payment.