Wisconsin-based Kalahari Resort has been working hard to create it’s fifth waterpark on 135 acres of land between Route 1 and Interstate 95 in Thornburg.
A performance agreement between the county and Kalahari that included tax incentives for the developer was approved by the Board of Supervisors on May 24, 2022. During the board’s August 23, 2022 meeting, it authorized a public hearing to consider adopting a separate performance agreement, which is required by the state for Kalahari Resort and Conventions to apply for the Commonwealth’s Tourism Development Financing Program (TDFP).
On September 2, 2022, the Spotsylvania Economic Development Authority held a special meeting regarding the required performance agreement. The county and state portions of the TDFP would be paid through tax revenue generated at the waterpark. Much like TIF (Tax Incremental Financing,) TDFP is a program in which both municipality and state divert and contribute future sales tax revenues towards the developer’s debt with the lender. Once a certified project is open and generating revenue, a locality, the developer and the state divert and contribute future sales tax revenues generated by the project towards the developer’s debt with the lender.
The project will create approximately 1.38 million square feet of commercial space to include a 900-room hotel; 156,278-square foot convention center; 267,429-square foot indoor waterpark and family entertainment center; multiple restaurant and retail facilities; and a 10-acre outdoor resort pool/waterpark; creating more than 1,000 local jobs. The property is located in a growth-designated area with a focus on tourism. Once the waterpark opens, it is expected to generate nearly $7 million a year in tax revenue in excess of the tax incentives for Spotsylvania County. At build out, Kalahari Resort is projected to be the single largest taxpayer in the county. The Board of Supervisors approved the new performance agreement during a public hearing at its September 27, 2022, meeting.
“This project will diversify the property tax base by bringing a new industry: the resort/convention business, to Spotsylvania. We expect this project to generate millions of dollars in annual revenue, and will provide jobs for varying experience levels including: full-time, salaried, part-time and hourly opportunities,” Spotsylvania Economic Director Kevin Marshall told L&T.
