Westin resort would be open in time for Equestrian GamesBy Alex Davis  alexdavis@courier-journal.comThe Courier-Journal 

Plans for a 267-room hotel at the Kentucky Horse Park in Lexington are “back on track” after months of delays, state officials said yesterday.

In a preliminary vote, the Kentucky Economic Development Finance Authority agreed to issue bonds for the project on behalf of the hotel’s developers. The state won’t be obligated to pay the debt, but issuance by a state agency will allow investors to avoid Kentucky income tax on the bonds’ interest.

State documents show that the hotel, a Westin, would have a stucco and limestone exterior, a shale roof, an outdoor swimming pool and about 300,000 square feet of overall space. It would open in time for the 2010 Alltech FEI World Equestrian Games at the Horse Park. 

The resort project will cost an estimated $88 million, said Brad Burgess, one of the developers. The average room would cost $184 a night, he said, and the hotel would have a 74 percent overall occupancy rate.

A groundbreaking had been scheduled for December, but state officials said the project’s financing was delayed because of problems related to the national subprime mortgage crisis.

If a financing package falls into place in the coming weeks, construction could begin early next month. When the resort is completed, it will be turned over to a nonprofit group, the Bluegrass Equine & Tourism Foundation, with Gov. Steve Beshear appointing a majority of the foundation’s board members.

The foundation will own the hotel, and any profits after debt service are to go to the state’s equine and tourism industries. The resort’s day-to-day operations will be run by Dallas-based Prism Hotels, according to documents submitted to the state.

The documents also show that the resort would feature an art gallery, a specialty grocery, a day camp for children and a network of walking trails accented with sculptures by local artists.

Creating the nonprofit group was the only way to make the project viable, Burgess said, adding that without tax-exempt status, the venture wouldn’t generate enough profit to attract private investors.

Burgess also will serve on the nonprofit’s board, as will Phil Osborne of the Preston-Osborne public relations firm. The governor initially wasn’t involved in making appointments to the foundation board, and Osborne said the new structure will allow for more checks and balances.

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