Bowdeya Tweh

btweh@enquirer.com

Kentucky has approved $8 million in tax incentives to support a hotel planned in Newport.

Musselman Hotels LLC plans to build a $33-million, 150-room hotel across from Hofbrauhaus.

Incentives help developers capture up to 25 percent of project capital costs over 10 years.

Kentucky tourism officials have approved $8 million in tax incentives to support a hotel development planned near Newport-on-the-Levee.

The Kentucky Tourism Development Finance Authority said Wednesday it approved credits to help Louisville-based developer Musselman Hotels LLC build a $33-million, 150-room hotel on the parking lot across from Hofbrauhaus. The credits also are for a project in Frankfort.

A hotel has been envisioned as part of the Levee’s long-term development strategy. Levee General Manager Harold Dull said last year that the venue wants to have luxury apartments, meeting space, additional retail and a parking structure in addition to the hotel.

The developer pledged to attract at least 25 percent of visitors from outside the state by its fourth year of operation and have a positive net economic impact on the state’s economy.

The authority considers applications under the Kentucky Tourism Development Act, which allows eligible tourism attractions a rebate of sales tax up to 25 percent of project capital costs over a 10-year period.