The following letter to the editor was on the Herald & Review's Blog and deserves attention. It was written by Terry Howley and asks our community to confront our priorities. For the post on the Herald & Review website - click here.
We would want to remind our readers that ill-conceived city decisions contribute to the high tax burden in the Decatur community.
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A recent guest editorial described the City of Decatur's hotel purchase as "a centerpiece for future economic development and provides a large amount of revenue for local taxing bodies". While this hotel is “nice to have” for Decatur, a fair minded person comes to a different answer. There are several key facts:
· Tax revenues from this property are only 20 percent more than the interest only cost to the city.
· Needed hotel renovations, will likely cost taxpayers several million over the next few years.
· Thirty percent occupancy rates show the limited demand for this hotel (successful hotels operate at 60% or higher).
· Total “room-nights” from both Farm Progress Show and State Republican Convention only represent 2% of annual possible room-night sales for this hotel.
· There is, and has been, little development interest in adjacent land.
· The City does not emphasize job preservation in city supported commercial ventures.
The City did not try to purchase K's, Intermet and other Decatur businesses. Would the Council buy other struggling businesses with employee residents? In fact, recent City financed developments did not require job increases or retention.
On the day after this purchase, newspaper headlines announced two new hotels in Forsyth. To investors, are these new hotels more viable due to traffic, shopping, restaurants and entertainment? The lack of interest from savvy investors is a red flag.
A city official stated that the storm sewers need rebuilding, while others call for a new lake, dredging and police space needs. Our community needs to set better priorities. The city manager also said: “… this isn't just about the money…” When using taxpayers funds to compete with Decatur businesses, it is only about the money. Taxpayers buying this hotel, simply doesn’t make sense.
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