Developers not taking stance on use tax
VAIL ” In Vail, major developers aren’t actively opposing the “construction use tax,” but they admit it would make their projects cost more.
T.J. Brink of Black Diamond Resorts-Vail, a Minnesota-based development company that is building the $250 million Four Seasons hotel and plans to redevelop the Evergreen Lodge, said he sees both good and bad in the proposed tax.
Brink wants to support the town and understands it needs money, he said.
“Obviously, they only have so many avenues to collect that revenue,” he said. “I want to support the community that we work in. That’s an important part of the work we do.”
On the other hand, it’s going to cost developers, including himself, more money to build in Vail, Brink said.
While that won’t affect the viability of his planned project, it might prevent other, smaller remodels from moving forward, he said.
“I just hate to see some projects that probably need to get done not get done because of it,” he said.
For some materials, the “use tax” would simply replace sales tax that he pays in other communities. For other materials, the “use tax” would be a new, added cost, he said.
Vail Resorts Development Company, which could have to pay millions in construction-use taxes for its $1 billion Ever Vail project, isn’t taking a position on the tax, a spokeswoman said last week.
Mark Masinter, part of the Texas development group that wants to redevelop the Lionshead parking structure, said last week that he doesn’t know much about the proposal but it could drive up his costs significantly.
“From a general standpoint it can be very, very impactful to large projects like ours,” Masinter said last week. “It just makes things a lot harder to do. … We’re not talking thousands of dollars, we’re talking about millions of dollars.”
Officials from East West Resorts, another local developer, didn’t return phone calls.
Staff Writer Edward Stoner can be reached at 748-2929 or email@example.com.