Construction will start on the Gaylord Rockies Hotel regardless of ongoing litigation and a planned audit of state incentives backing the project, Aurora Mayor Steve Hogan told the Colorado Economic Development Commission on Thursday morning.

“The target for groundbreaking is this year,” Hogan said.

Once ground breaks on the 1,500-room conference hotel near Denver International Airport, the contract between the state and Aurora to provide an estimated $81.4 million of incentives under the Regional Tourism Act becomes irrevocable, Leeann Morrill, the state’s first assistant attorney general, told the commission.

The project has faced two lawsuits and more recently a challenge from state Treasurer Walker Stapleton. Last week, the Colorado Legislative Audit committee asked the state auditor to look into the validity of commission awards under the Regional Tourism Act.

Opponents are concerned incentives will give the hotel, which would be the state’s largest, an unfair competitive advantage and siphon business from other conference hotels, especially those in downtown Denver.

They also question why a new application wasn’t required when the original developer, Gaylord Entertainment, dropped out. They point to an internal document showing RIDA Development, the new developer, needed only $735 million, rather than $823 million initially proposed, making state incentives unnecessary.

Hogan addressed that last point on Thursday, saying the hotel’s estimated costs will come in within 3.5 percent of the original amount stated in the application.

An Adams County judge last month invalidated an election in Aurora that OK’d a higher tax rate on the Gaylord land, which could cut into part of the $300 million of local incentives awarded the project.

Hogan said the ruling, if it stands, could jeopardize numerous special district tax increases approved by landowners, and he expects Aurora will win on appeal.

Aurora can still collect the base lodging and sales tax, given that the election was only for a tax increase. While he doesn’t expect it will be needed, Hogan added he is confident voters would provide approval.

Hogan said RIDA has the equity and other financing necessary to start construction. Incentives won’t kick in until the project starts collecting lodging and sales taxes.

In other business, the commission approved job growth incentive tax credits from four employers who have applied to bring in or retain 1,344 jobs.

The largest request, for 693 jobs, was for a financial services firm currently in Denver looking to expand in Colorado or Texas. The firm, which already has a large presence in Denver, likely would need to find much larger office space to accommodate the new hires.

The commission approved several nonprofit projects within enterprise zones, including credits to contributors helping fund a new aerospace building and sports field at Metropolitan State University of Denver.

By a narrow 5-4 vote, the commission rejected an enterprise zone contribution credit for Metro’s hospitality training program.

Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi