Comments on: RIP Dallas Member Offers Some Answers

By: RIP Member #47 of 52

RIP Member #47 of 52 — Thu, 23 Apr 2009 21:35:49 +0000

The main reason that the hotel has not been done by the private sector is the economics behind the financing. It is hard for numbers to make sense when the interest rate that the developer is paying makes the profit margins extremely slim. However, if you can finance the hotel with really cheap money (i.e. revenue bonds that offer much lower rates), then the deal makes a lot more sense. I know I am really dumbing down the explanation, but it is what it is.

Secondly, aside from the main debate about hotel/no-hotel, the real issue that at least I have with this is that the language that Prop 1 has will keep a hotel from really ever being built. It states that the city, among other things, can never use city funds for purposes of building a lodging facility. Well, this would include tax-incentive financing (TIF) dollars, would it not? And would you expect any developer to come into the CBD and build a convention center hotel without some sort of TIF? That would prevent this from ever happening, in my opinion…and that would be REALLY bad. Not to mention and further development that would be sparked by this hotel, whether publicly or privately built.

By the way, I am a young, real-estate professional that does own property in the City of Dallas. Most of us associated with RIP Dallas fall in that category.

By: Carl

Carl — Thu, 23 Apr 2009 02:39:56 +0000

Since the RIP in Dallas people are closely monitoring the blogosphere (especially this blogosphere), maybe tjey can answer a question: why should the city invest so much in a hotel that private development has absolutely no interest in building?

By: Biff

Biff — Tue, 21 Apr 2009 23:01:20 +0000

Amanda: Just wondering…do you ever grow beyond sweeping blanket statements that may make YOU feel good but have no facts whatsoever to back them up?

And therefore persuade no one?

Guess you must be running for Governor of Texas or something. You’re obviously some sort of a Republican politician.

By: amanda

amanda — Tue, 21 Apr 2009 22:53:22 +0000

Rookies struck out.

By: Bethany

Bethany — Tue, 21 Apr 2009 18:25:43 +0000

Hold up…Eddie Deen’s provided food for 600, and they might get paid, or might not, maybe all of it, maybe none?

Excuse me, but yeah, that’s called bankrolling.

By: Tom

Tom — Tue, 21 Apr 2009 17:11:00 +0000

If young people have received the “message,” I doubt that it will help raise turnout for a city election, which generally draws a fraction of the registered voters that presidential elections do.
I think this does more to hurt the pro-hotel cause than help it, but we’ll see.