Comment on this post

Here’s Why It Will Cost $1 Billion in Taxpayer Subsidies to Build Hotel Rooms for the Convention Center and Farmers Field

On Tuesday in committee, Councilman Bill Rosendahl passionately raised a lot of questions about why it was necessary to give a $67.3 million subsidy to developers of twin Marriott hotels near LA Live where there already is two more luxurious hotels gettiing nearly $300 million in taxpayer subsidies.

You can listen to key excerpts of what he asked about and how city officials and consultants were unable to answer, question like what do other cities do, how often does a $12 billion corporation like Marriott get public subsidies and, most importantly, when we downtown will stop draining vast sums of tax dollars that should be going to public safety, libraries, parks, regenerating deteriorating neighborhoods and upgrades for aging infrastructure.

Rosendahl-Concern    Rosendahl-Demand

Today, when the Council, in its rush to unthinkingly approve the supposedly shovel-read deal, Rosendahl repeated his questions and got double-talk and gibberish responses.

He voted against the deal but nobody else on the Council cared with Zine, Krekorian, Buscaino and Englander shining as apologists for the latest in a long line of dumb subsidy deals, the latter Councilman actually acknowledging in passing the real reason for the giveaway of tax dollars in order to buy jobs.

The reasons are simple enough: Room rates that hotels can get for downtown rooms — despite billions upon billions of tax dollars in subsidies over 30 years — are too low to cover  costs which are highly inflated by project labor agreements, living wages and city-required union contracts.

The reasons why the city needs this deal are simple too, simple and ridiculous: More hotel rooms are needed for the white elephant Convention Center that over decades has bled nearly $1 billion from the city treasury, money that would have made LA a healthier city in every way.

It’s estimated that to be successful, the city needs 7,000 hotel rooms within walking distance of the Convention Center so the 392 rooms to be built with this $67.3 million provides barely 5 percent of the total, suggesting the other 6,600 rooms will send the subsidy bill soaring way past the $1 billion mark.

Here’s how it went for Rosendahl at Council today:

This entry was posted in 2013 LA Elections, City Hall, Hot Topics, Los Angeles, NFL Stadium and tagged , , . Bookmark the permalink.

15 Responses to Here’s Why It Will Cost $1 Billion in Taxpayer Subsidies to Build Hotel Rooms for the Convention Center and Farmers Field

  1. MissAnthrope says:

    In case you didn’t already know, Zine is an ass!

    And this jack of an ass wants to be controller who, with one mouth is going to keep tabs on spending and with the other helps line the pockets of billionaires with millions — if not billions — of tax payer money.

    Forget potholes, closed libraries, rotting water mains, parks littered with advertising graffiti, too few cops and firefighters, crumbling-lifting sidewalks, gang scribblings everywhere, homeless people crapping up what’s left and all the rest of it.

    It’s all okay as long as the big contributors and labor unions get their way. The rest of us who foot the bill be damned!!!

  2. Anonymous says:

    Let’s get some competent people into City Hall. Force Zine into retirement where he can enjoy his cadillac pensions. Vote for Cary Brazeman who’ll do a great job in curtailing costs in corrupt City Hall. He is running without any union money.

  3. Wayne from Corruptopia says:

    JUST IN: URGENT UPDATE: “IS RON A REAGAN REPUBLICAN NOW?”
    Yes, It took Ron all of 70 years to LEARN that COMMUNISM and ONE PARTY LIBERAL AUTHORITARIAN RULE are RECIEPES FOR DISASTER:
    Consider how RON LEARNS that LIVING WAGES AND UNION-SCUMBAG deals WRECK THE FREE MARKET whereby a regular SCHMUCK pays WAY TOO MUCH FOR A ROOM AND YET IT DOESN’T COVER NEARLY THE COST OF THE LIBERAL AND CORRUPT CRAP THAT BUILDS THE HOTEL SHE STAYS IN!”
    “The reasons are simple enough: Room rates that hotels can get for downtown rooms — despite billions upon billions of tax dollars in subsidies over 30 years — are too low to cover costs which are highly inflated by project labor agreements, living wages and city-required union contracts.”
    WHO SAID THE ABOVE QUOTE?
    A. Ronald Reagan
    B. Wayne from Corrupt Koretz-Occupied Encino
    C. Margaret Thatcher
    D. Ron Kaye
    CHOICE D==RON KAYE ACTUALLY SAID THAT!!!
    WELCOME TO THE WORLD OF SANE LIVING RON!!!!!!!!!!!!!
    There’s hope yet for America.

  4. Kk says:

    Bravo, Bill. Do I understand this correctly? The Council thinks that it is more important to subsidize a downtown hotel over the next 25 years to create temporary jobs for people who don’t necessarily live in the city of LA rather than fund fire departments and libraries?

    • ex valley says:

      Since it’s LA these people with themporary jobs are the ones that dont even affect the unemplyment rate. You know what I mean. They have no authorization to work here. You understand.

    • anonymous says:

      but…but…most of LAPD & LAFD & LA bureaucrats
      do not live in greater-downtown LA….they live where it’s nice…
      where incidence of crime is lower than average…
      where property value is higher than the median…
      where quality of life is far superior than most of LA…
      think about it…

    • anonymous says:

      but just think… most of LAPD & LAFD & LA bureaucracy
      do not live in greater-downtown-LA…they live where it is nice…
      where incidence of crime is lower than most of LA…
      where property value is higher than most of LA…
      where quality of life is far superior than most of LA…
      please do not censor this valid point…

  5. Jim O'Sullivan says:

    Did someone on the Council at least have the decency to say “let them eat Cake?”

  6. InsideOpinion says:

    Kk, you boiled it down to its essence.

    The fact remains that if hotels aren’t commercially viable, no competent accountant/risk manager in private industry will recommend building them. If they are not going to be commercially viable, EVEN WITH THE STADIUM — then they should not be built.

    Giving several thousand people jobs is … nice. But it isn’t the Big Picture (remember when that was a business catchphrase, back in the 80s?).

    The Congressional Budget Office, a nonpartisan office, has said that economic recovery is tied to the increase in small business — in fact, they used the word “disproportionate” to describe the relationship. The economy, national or local, will not recover unless small business bloom again. It won’t recover because one 6,000 room hotel goes up.

    These small-picture-thinking politicians need to get their heads out of their backsides and start looking at the reason the city exists — the core responsibilities. Not this shell game.

  7. Anonymous says:

    Conventions are a thing of the past. There aren’t enough big corporations or government agencies that can afford to send employees for 4-5 days of fun. The LA Convention will continue to lose money for years to come. Does AEG care? They won’t lose a penny. Does labor care? Their leaders like Durazo are looking for short term employment even as their coffers fill-up with union dues. Do our politicians care? Their only interest is money for their next election. Should LA residents care? If they did they would never allow such corrupt deals for which they and their children will be paying for one way or another.

  8. Kk says:

    As I think about this more, the city has given away over 1 billion dollars in general fund revenue going forward for just the downtown hotels. I’m sure someone will give me the figures for the farmers field deal that again will not contribute to the general fund. There is a holiday for new businesses that relocate to the city of LA that again will not go to the general fund that is the second largest revenue producer for the general fund. Leaving aside the increases for the city employee, how do the council people who vote for these deals explain how the city will be able to afford services for more people and more businesses?

  9. Anonymous says:

    “Leaving aside the increases for the city employee, how do the council people who vote for these deals explain how the city will be able to afford services for more people and more businesses?’ —– Through higher taxes, fines and minimal services.

  10. If Farmers Field and the Event Center are built, then the developers should repay the tax break.

  11. Teddy says:

    It all sounds like graft to me and becaus it was in effect in 1998 does not
    make it valid today – times have chaanged, we cannot afford these games you people are playing.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>