Another giveaway?

Well it looks like the onslaught will continue.

Our city government has decided that we need a new convention hotel in the downtown area.

In fact it looks like they want it so badly that they are willing to let us pay for it.

They have issued a request for proposals (RFP) asking that organizations submit proposals to build and operate a “250-room, full service, convention center hotel with a major national full-service lodging flag with related amenities and facilities”.  Further the hotel needs to have “a full-service three-meal restaurant”, “extended-hour room service”, “complimentary airport shuttle service”, and a “fitness center, pool and a bar/lounge”.

That sounds nice.  I wonder why someone has not built one yet.

The obvious reason it has not happened is that it is not economically feasible.

The city’s solution?  Let the city pay to build and operate the hotel.  We need it after all.  Just tell us how much money you need.

The fix is in

The RFP explains that the proposals will be graded with five evaluation factors.  A perfect proposal would receive 100 points.  The proposal with the most points wins.

The first factor is “Proven Ability of the Development Team”.  Proof will consist of ability to secure financing (for the part the city is not going to pay for), ability to meet the construction schedule, historic ability to complete projects of similar scale, and other things like references.

Second we will have “Financial Feasibility”.  How deep are their pockets?  Who runs the place?  What financial commitments are you capable of or willing to make?

“City Participation” is listed third.  In other words how much will the city have to cough up to build this hotel that no one wants to build without a handout?  The RFP incredibly does not say how much the city is willing to pay but instead asks the proposer to tell the city how much they will have to kick in.

“Development Schedule and Miscellaneous” is the fourth factor.  Have you ever built something in a hurry with no concern for economy?

Lastly we have “Preferred Subject Location”.  Proposals that would place the hotel within 1,000 feet of the civic center will get the most points.  Evidently anyone who does not already own the land they will use will have to be prepared to pay handsomely since the city has gone public and told the existing land owners to be ready to cash in.

Incredible

“City Participation” only counts for 15 points or 15% of the decision.  Money is no object–since the city can just send the taxpayers the bill.

Location counts for 25 points.  That gives the advantage to people who already own land in the 1,000 foot area.

Development schedule is just 10 points.

Proven Ability and Financial Feasibility each count 25 points for a total of half of the evaluation.

Easy selection

There are not a lot of choices here.  The city is basically telling one or two developers to just state their terms.  The city will pay whatever they want.

Keep quiet

Don’t call the Mayor or your city representative.  The RFP makes it a point to let us know that that would be illegal.  More on this in a future post.

We deserve better

Brutus

7 Responses to Another giveaway?

  1. Yeah, they were talking about this some time ago, and it was pointed out at that time, if this was a potential profit maker, the private sector would have already stepped up. And, here we go again. Admin types can apparently talk this Council into just about anything.

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  2. Unknown's avatar Jerry K says:

    The city does need a convention capable hotel downtown. The Camino is a dump with absentee owners unwilling to clean it up. The dining service for large groups is awful: poor quality food and you get your dinner rolls along with dessert. For that matter, the covention center food is awful, too.

    If we are going to attract the convention business, something needs to be done about the hotel situation. The DT isn’t large enough and the new boutique hotel in the Basset tower and Artisan also are also not big enough. Together with a convention hotel the CVB will have a package to attract mid-size groups that are going to go somewhere each year. May as well be here.

    A developer who has a national brand is required. That said, lets hope and lobby for a transparent process and not the old Wilson trick to transfer more of our tax base to Paul and Woody.

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    • Brutus's avatar Brutus says:

      The RFP has three aerial pictures/maps of the downtown area for the prospective responders to look at. They all show city hall on the ball park site thus failing to show the responders that there is a great ball park in the area.

      If you are not local you might miss this.

      Brutus

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  3. Unknown's avatar overtaxed says:

    The need of a convention capable hotel is not new news.

    Seems the heavy public subsidies given to the new Westin at the airport should be heavily questioned as to why staff, management, and the remnant CC Reps from the “Taxpayer got Cooked” years did not insist on a downtown location.

    Surely the taxpayers must own a conveniently located functional downtown building that Wilson, Ortega, Byrd, Niland, Noe, and Lilly would have no doubt been willing to blow up for them if needed.

    So tired of paying for incompetence at the City.

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    • Unknown's avatar Jerry K says:

      Foster owns the Plaza – the old Hilton downtown where Liz Taylor reportedly spent her wedding night with Conrad Hilton (she was shooting Giant back then, I think). Would it surprise anyone if that were the winning bid as a rehab?

      They’ll need to replace the mattresses.

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  4. Unknown's avatar Just saying says:

    Look at the Omni Hotel in Dallas. It is owned by the City and it is connected to the Dallas convention center. Ruidoso and Las Cruces have more conventions than El Paso.

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