....they buy into a FOLLY and no reasonable explanation can persuade them otherwise.
This facility lost $$$, is costing taxpayers and tourists $$$$ and the BLIND MICE follow!
If this is such a GREAT deal, why are Massachusetts taxpayers subsidizing profitable hotels?
Wouldn't this make a great location for a Casino? [sarcasm intended! : ) ]
Anyone see the obsenity?
But even with its success, the
facility posted a $65 million operating loss in its most recent fiscal year,
most of which was offset by a state fund set up to finance the center’s
construction.
Rooney said the fund, which is supported by taxes on hotel rooms and other
tourism activity, generates enough money to cover losses at the existing
building and pay for the new one.
But the effort to build a
1,500-room hotel complex could require tens of millions of dollars in public
assistance such as tax breaks or direct subsidies. That’s because private
developers and lenders have been unwilling to take the risk on such a project
without public support.
“Tax deferrals and other
arrangements are used to help these projects get across the finish
line,”......
Excerpts from this article below:
Murray aide ensnared in Fed trial - Touts pro-business policies
South Boston's new convention center size a question
Murray described the size of the South Boston convention center as an "obstacle" to progress.
"In comparing the Commonwealth to the rest of the country, our convention centers, facilities and hotel space pale in comparison to what other states can offer," she said. "The Boston Convention and Exhibition Center simply cannot house major events, both national and international, that want to be in Massachusetts. And as a result of this shortage, we are letting roughly $184 million in economic impact slip through our fingers each year."
She called support for the center's expansion, which requires legislative approval, "critical" and predicted expansion would compound the combined economic impact of the BCEC and the Hynes Convention Center by 35 percent, or from $532 million per year to about $716 million.
"The BCEC expansion will undeniably serve as a great boon to our economy, but more importantly, it will show that Massachusetts isn't just a small New England state, but a player on the world stage," Murray said. "This is a goal we've been working towards for years, and we are finally on our way to getting the international attention that we deserve."
House Speaker Robert DeLeo recently called the $1.1 billion expansion project "vital to our economic future," so the bill's prospects appear favorable. The project would increase the BCEC's footprint from 516,000 to 851,000 square feet and requires passage of legislation authorizing $1.1 billion in special obligation bonds.
A Patrick administration official recently testified that the convention center bill meets three administration requirements regarding the use of existing taxes and fees, private financing of hotel development, and creation of economic opportunities for businesses led by women, minorities and veterans.
What pays the cost
The bill (H 3952) relies on existing hospitality industry charges - Boston-area taxes and fees on hotel rooms, sales and meals taxes, trolley tour levies, and a $10 rental car surcharge - to finance the expansion and leverage private hotel development valued at $700 million. The statewide room tax is specified in the bill as additional security on the bonds, a provision that has stirred concerns among lawmakers who represent districts far from Boston.
http://www.capecodtoday.com/article/2014/05/09/25312-cape-senator-murray-says-shes-not-going-away
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