Originally Posted by
Spartan
The pay to play with the top brands is certainly a lot higher than $25M resembling just land assembly, parking, and an attendance guaranty. How this goes down is that the city will issue an RFP and each bid will list the subsidy requested by each hotel operator. This format, which is the national standard for CC hotel development, puts the hotel in the driver's seat during negotiations.
As for $40 nights I'm not saying that it will happen every night there isn't a coinciding convention booking but it will occur a handful of nights a year and the taxpayers will be paying the operator, under such a model that you suggested, for rooms not booked as well as bookings when occupancy dips below a certain level (maybe 70% who knows). You're certainly right that the strong downtown hotel market is one detail Sanders neglected to consider here.
I'm not basing my cautionary argument on this examples I'm just extrapolating what we're really talking about here just so that you all have some details to go off of. The only complaint I have is that this process steers clear of real details until it's an up or down vote on making a deal.
Bookmarks