Argentina: U$S 40 million to be invested in the construction of Sheraton Tucumán

Minister of Production, Jorge Gassenbauer, confirmed this week that the agreement between the province and the private party was signed, which will allow an investment of us$ 40 million in a maximum deadline of 60 months. The operation will be in force

through the law that will be ruled tomorrow.

President of the party Tucumán Crece, Roque Tobías Alvarez, said that the initiative has already received a positive decision on the commissions of Economy and Tourism. The proposal, presented by Gregorio García Biagosch, Carlos Canevaro and Armando Cortalezzi, leads, in total, the signature of 18 official representatives.

The project authorizes the government to sign an agreement to install a top-level hotel, belonging to the mentioned chain. The place will be sold at no less than us$ 5 million, to be paid in five years, plus a 2-year grace period in equal consecutive monthly installments, without updates or interests.

The state commits to bring back the 30% of the investment (the maximum quantity to be brought back is us$ 11 million), through fiscal credit certificates that could be transferred to third parties. With these values, some taxes can be cancelled.

The benefit will start running after the construction of the reinforced concrete is certified, up to the fifth floor. In this instance, an additional certificate can be delivered for us$ 500,000. Besides, an exemption of regional taxes will be granted for 15 years, which could be extended for other five years.

The norm that will be sanctioned by the Chamber establishes that Sheraton could have a gambling venue. But it specifies that, in case of being installed, the activity will not have the tax exemption mentioned before. It also says that the purchase of the land will not be considered as part of the investment, so the fiscal credit certificates cannot be used as part of the payment.

“The norm will be improved with the signature of the agreement. The aim of the investors is to come to sign an agreement as soon as the law comes into force. And the development will start among the 60 to 90 days from the moment in which the agreement is signed”, said Gassenbauer.