Friday, November 13, 2009
Barry / Politics One Way to Make Music City Center Revenue Numbers Work: Double Them
Posted by Bruce Barry on Fri, Nov 13, 2009 at 12:17 PM
Comments (10)
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Borrrriiiiinnnnggg. You guys are really digging to find reasons to oppose the project.
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If it were up to these guys nothing would ever get built in a public/private partnership. They are Republicans in Liberal clothing. Now they have a another spokesman -- Carl Boyd Jr., the TSU senior with a radio show on the school's AM radio station. The guy has to be one of the most uninformed radio people I've ever heard, not just from the standpoint of the proponents but from the opposition as well.
There's not much doubt the hotel will be smaller. BB is reaching with the question on revenue relative to a smaller hotel. It just means more business for adjacent hotels. Also, a second hotel could be built at Second Avenue and Broadway and not be that far away. People forget that the zoning still exists for a hotel after the Westin deal fell through when the financial markets tanked.
noodles,was'nt it gaylord that said they turned a profit collecting cancellation fees?
There's not much doubt the hotel will be smaller. BB is reaching with the question on revenue relative to a smaller hotel. It just means more business for adjacent hotels.
You are entirely missing the point. Yes, of course a smaller HQ hotel means some convention center lodging business will go to nearby alternatives, where sales tax will be duly paid. But the point in the post is not that a smaller hotel will yield a decline in sales tax revenue generally; the post is about the redirection of certain sales taxes to service MCC debt. That redirection doesn't involve "adjacent" hotels; it involves only sales taxes generated on the MCC campus -- which in hotel terms means the HQ hotel. So if the HQ hotel is to be significantly smaller then was assumed at the time that previous revenue forecasts were made, then the redirected tax revenue servicing MCC debt will obviously be concomitantly lower.
And let's keep in mind that the sales tax redirect is not a trivial revenue stream here. The annual debt service number for just the convention center will likely end up in the low-mid $40 million vicinity, and the most recent revenue projections for sales tax redirect (CH Johnson, Aug. 2009) estimate that it will rise over time to the low-mid $20 millions.
