Thursday, December 11, 2008

Peoria's New Hotel Seen as "Ultimate" Answer

Great, if this project succeeds. As usual, I will play the "DA". From the JS, I am uncertain what dollars the private investors would contribute to the projected cost of $102 million. .. "Of the total, $39.3 million will come from public money that would be financed through bonds and repaid over 23 years. Property taxes for the complex will be frozen for 23 years. Increases in property tax revenue for others in the district will be used to make improvements. Conservative revenues projected over 23 years of the bond issue include $41 million from TIFs, $5.3 million from a 1 percent (1 cent?)sales tax on hotels in the downtown area and $2.8 million from a 1 percent (1 cent?) sales tax on businesses within the city's newly adopted Hospitality Improvement Zone."

Also, projected increases of the Marriott hotel ($25.5 million) and restaurant ($3.9 million) tax revenues are envisioned to generate additional money during the next 23 years. In addition, an incremental increase in sales taxes generated from the development ($5.4 million) would go toward repayment of the bond.

Debbie Ritschel of the Civic Center says "we think we will be able to reach the full potential; at least we think we can".

So let's cut to the amount the city will be contributing of public dollars, street renovations, buying up all the properties, tearing down of all the properties, paying relocation of existing business; Big Al's owner says the cost of remodeling an old building for him are "astronomical" (shades of the "generous" buyout of the cleaner to site the new ballpark).

How many tax dollars would be lost if some of the businesses to be relocated just take the money and run?

What about the remaining payment to the city of $100,000 on the parking deck?
And most important, exactly how much is the private sector investing in this project? The figures above only add up to about $80 million.

And very important is the fact that many projections made in the past 10 years have been just that, projections. So the biggest question of all is is "what if the projections don't 'pan' out". Exactly who gets stuck?

From the facts made public, this deal hasn't seen enough light as yet to be voted on next week by the city council.

1 comment:

Karrie E. Alms said...

Exactly who gets stuck? Ha ha ha -- we all know the answer to that one --- drum roll please ---- the taxpayers .... again!