Tag Archives: Gary Matthews

Why isn’t the council nixing the hotel deal?

I listened to “Outside the Horseshoe” on WCBU last night before the city council meeting. One of the guests was Second District Council Member Barbara Van Auken. During the course of the show, she mentioned several times that the city needs to do what any citizen would do when faced with lower income — start cutting expenses, and start with things that are wants, not needs. I completely agree with that kind of thinking.

Unfortunately, this thinking does not translate into action for Van Auken and most of the other council members when it comes to the City’s plan to give $39.5 million to Gary Matthews to build a huge addition to the Pere Marquette and affiliate with Marriott hotels. As much as I opposed the sales tax increase for the proposed downtown museum, at least taxpayers had the consolation of knowing that museums have some civic value. Not so with the hotel.

The city has an opportunity to get out of the deal at this point. The developer is unable to get private financing, and has missed contractual deadlines. The city is in a position to walk away from this deal and save the taxpayers $39.5 million on a “want” that could be repurposed for a “need” elsewhere.

Why is it that the city has no trouble raising taxes to help private developers (which benefits only a few), but wrings its hands at the prospect of raising taxes for basic services (which benefits all)? Why does the city have no problem levying a 2% tax on restaurants to benefit the civic center, but won’t raise taxes 2% on packaged liquor to help plug a $10 million budget gap that affects police, fire, and public works? And they won’t even consider a property tax increase, of course.

The hotel deal needs to be canceled immediately, if not sooner. There’s a reason banks aren’t loaning Gary Matthews the money. The city would do well to heed the banks’ decisions as a warning that this is not a good investment for the city — and by “the city,” I mean the taxpayers, who are ultimately providing the money.

“Everyone has to share the pain.” “We must cut ‘wants’ so we can provide for our ‘needs.'” All these platitudes are meaningless as long as the city council continues to pursue the hotel plan.