The Internal Revenue Service is auditing $356.2 million of revenue refunding bonds issued by the Denver, Colo., Convention Center Hotel Authority in May 2006.
The authority disclosed the audit in an event noticed filed with the Municipal Securities Rulemaking Board’s EMMA system.
The IRS said it routinely examines debt issuances to determine compliance with federal tax requirements, the authority said in the notice.
“The letter further indicates that the bonds were selected for examination as part of a project initiated by the Service involving financing of hotels, convention centers and similar facilities in order to ascertain compliance with federal tax requirements applicable to governmental bonds,” the notice said.
The IRS said it has have no reason to believe the bonds fail to comply with any of the applicable tax requirements. The proceeds of the bonds were used to finance the construction of a full-service convention center headquarters hotel, parking garage and supporting facilities, according to the official statement. The more than 1.2 million square-feet hotel contains 1,100 rooms, a four-story glass atrium, a 300-seat full-service restaurant, a lobby bar and lounge, 60,000 square-feet of meeting space and a 565 parking space garage.
Piper Jaffray was underwriter. Kutak Rock LLP was bond counsel.