After a lengthy deliberation, the Tri-County Lodging Association on Monday issued what reads like the final nail in the latest version of a long-planned “headquarters hotel” adjacent to Metro’s Oregon Convention Center.
The influential hotel association made three key points in its May 18 letter (PDF) to Metro Council President David Bragdon Multnomah County Commission Chairman Ted Wheeler, and Portland Mayor Sam Adams. (Adams has made development of the hotel a centerpiece of his administration; the other two leaders, whose jurisdictions are also stakeholders, are lukewarm at best).
1. The group opposes any increase in the Transient Lodging Tax to finance the project or any use of the current lodging tax to support hotel operations.
2. The group wants the hotel to be either privately owned or to have substantial private equity backing the project. (The current proposal calls for a publicly owned hotel that would include only about 1 percent private money).
3. Perhaps most damning, the lodging association’s members think the numbers produced by the Starwood hotel group, which has been working with the city-owned Portland Development Commission to finance the project, “may not accurately reflect Portland market realities,” and may overstate net operating income by up to 40 percent per year.
City Council, Multnomah County and Metro are supposed to vote by July 1 whether to spend $12 million to develop design drawings and a guaranteed maximum price for the proposed 594-room hotel.
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Quelle Surprise! “Lodging Group Pans Mayor’s HQ Hotel Plan”. All I needed to read was, “publicly owned hotel”… YUCK. Sam or aaah Amy can you send over some Biodegradable TP, we’re out, yeah ..to room 205, Hello? Hello?…
Why would the City of Portland provide a huge public subsidy and then allow it to remain “privately owned”?
I hope somebody is bribing Sam Adams (and Randy Leonard on the MLS Soccer Subsidy). Otherwise, they’re just too stupid for words.
Thanks for watchdogging Sam and keeping us informed about his potential follies. His seeming lack of concern about making prudent financial decisions for the residents of our city is appalling.
I realize this is posted under the wrong article, but how did Jennifer Yocum’s position as Sam’s inexperienced Art Policy Advisor, pan out in the budget cuts that Sam’s staff finished up before he took off for Brussels?
Also, did anyone ever find out if Sam’s Chief of Staff, Tom Miller, who flew along for the ride, had his trip paid for by the people who put on the Cycling Conference, or was that somehow put off on us? Same question as to the 3rd person who went over? Who paid? It was explained that Sam’s ticket was picked up, but didn’t read on his traveling companions.
If Portland picked up the tab, what was the bill?
Since when has your competition’s opinion about your business plan made sound business advice? I mean, if these guys are against the hotel, it may have a real chance to do extremely well, right? Why would they worry otherwise?
Hmmm. Why would they worry otherwise?
1. Because their customers will have to pay a tax that supports a competitor. Imagine forcing your customers to pay an extra dime per Big Mac so the city can finance a new Burger King down the street.
2. Because publicly financing the competition is unfair. Imagine struggling through this economy on your own $ and merits, while the city pays to create more competition for your floundering business.
Just a thought…
[...] this week, WW reported that the Tri-County Lodging Association notified local leaders it opposes moving forward with the current plans for a “headquarters [...]
[...] yet again. Proponents have struggled to find financing for the project and to convince skeptics that it makes [...]