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First hotel in new Trump chain seeks Mississippi tax breaks

A Mississippi developer that has joined with the Trump Organization to open the first of possibly dozens of hotels in the U.S. president's new mid-priced chain has applied for millions of dollars of state tax breaks.

Posted: Feb 9, 2018 7:38 PM

NEW YORK (AP) — A Mississippi developer that has joined with the Trump Organization to open the first of possibly dozens of hotels in the U.S. president's new mid-priced chain has applied for millions of dollars of state tax breaks.

Chawla Hotels filed an application in December for a tax break with the Mississippi Development Authority worth as much as 30 percent of eligible construction costs, or roughly $6 million, CEO Dinesh Chawla said Friday.

The Trump Organization announced a deal with the hotel company in June as part of the rollout of two new chains, drawing complaints from ethics experts that government officials and local real estate partners might offer special favors to the president's business to curry favor with him.

President Donald Trump faces several lawsuits that allege he is violating the so-called emoluments clause of the U.S. Constitution forbidding presidents from accepting gifts or payments from foreign or domestic governments.

In an effort to resolve conflicts of interest issues, Trump handed management control of his company to his two adult sons before he took office last year. Critics say that's not good enough, and that he needs to sell his ownership interest in his business to resolve what they claim as emoluments violations.

The president's lawyers have argued that normal business transactions don't fall under the emoluments prohibition.

Chawla said he's sees nothing wrong with his company applying for tax breaks, which were first reported by The New York Times.

"I'm not a legal scholar, but I'm an ethical business person," he said in an interview with The Associated Press. "I don't toss the word 'Trump' around. I don't ask anyone for favors."

Chawla said his company has already received abatements on city and county taxes.

The Trump Organization had no comment.

The Trump Organization, which is based in New York, announced its two new chains — the mid-priced Scion, and the budget-priced American Idea — with great fanfare last year. Trump Hotels CEO Eric Danziger said he expected dozens of Scions, for instance, in short order.

But the chains have gotten off to a slow start, with only Chawla Hotels agreeing to join up with the company so far.

Chawla said that he expects it will cost $20 million to build his Trump hotel, which will be a Scion. The hotel in Cleveland, Mississippi, will be the first in Trump's new chain.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 294994

Reported Deaths: 6681
CountyCasesDeaths
DeSoto19672230
Hinds18799386
Harrison16710278
Rankin12685264
Jackson12592226
Lee9687160
Madison9457199
Jones7962146
Forrest7208136
Lauderdale6833226
Lowndes6022137
Lamar588080
Lafayette5733113
Washington5218130
Bolivar4609123
Oktibbeha441393
Panola430394
Pearl River4167130
Warren4129114
Pontotoc408869
Marshall403192
Monroe3989126
Union395374
Neshoba3807168
Lincoln3541102
Hancock347374
Leflore3375118
Sunflower318386
Tate302474
Pike300195
Scott293870
Alcorn291861
Itawamba289975
Yazoo289262
Tippah278765
Copiah277857
Coahoma277568
Simpson274878
Prentiss269758
Wayne253841
Marion252678
Leake252471
Covington248879
Grenada247377
Adams234377
George231745
Newton229652
Winston221675
Jasper213445
Tishomingo212365
Attala206569
Chickasaw201151
Holmes182270
Clay179150
Stone172429
Tallahatchie170539
Clarke169371
Calhoun157828
Smith152731
Yalobusha144836
Greene127633
Walthall124140
Noxubee122829
Montgomery122438
Perry121634
Lawrence120321
Carroll118225
Amite111533
Webster110630
Jefferson Davis101731
Tunica99023
Claiborne98429
Benton93324
Humphreys92827
Kemper90223
Quitman77114
Franklin76119
Choctaw69516
Jefferson62527
Wilkinson62426
Sharkey48817
Issaquena1676
Unassigned00

Alabama Coronavirus Cases

Cases: 493769

Reported Deaths: 9931
CountyCasesDeaths
Jefferson710731374
Mobile36139727
Madison32425455
Tuscaloosa24184410
Montgomery22586500
Shelby21968215
Baldwin19758283
Lee14967153
Morgan13667251
Calhoun13300286
Etowah13184319
Marshall11262209
Houston10104261
Elmore9385185
Limestone9363134
Cullman8897181
St. Clair8827223
Lauderdale8607211
DeKalb8459175
Talladega7523163
Walker6524255
Jackson6495102
Autauga627091
Blount6102127
Colbert6004118
Coffee5249102
Dale4642107
Russell404930
Franklin399177
Covington3960106
Chilton3876100
Escambia377672
Tallapoosa3588142
Clarke343650
Chambers3413110
Dallas3403141
Pike293472
Lawrence283484
Marion281995
Winston246867
Bibb245060
Geneva239970
Marengo236455
Pickens224654
Barbour211651
Hale210568
Fayette200756
Butler196866
Henry182441
Cherokee177038
Monroe166139
Randolph163740
Washington156535
Crenshaw144854
Clay144454
Macon142043
Cleburne137839
Lamar132833
Lowndes131151
Wilcox121825
Bullock116936
Conecuh106724
Perry105627
Sumter98531
Coosa88923
Greene88232
Choctaw55123
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