Monday, February 24, 2014

Why we should not have a new hotel funded with tax rebates

My concerns are the existing businesses that compete against this not only state sales rebate blessed business but likely also county property tax rebated blessed business.

I am not sure what taxes the city will rebate but likely will.

With a rebate on the taxes, after they are paid first, of up to $75 Million x 2 or x 3 IF you feel government has to help an specific industry get off the ground to help the economy - this proposal is better than some other options.

The fact that we have an existing same industry of multiple businesses in the target location that don't get the same deal it is totally unfair.

Also a lot of money. $75 Million or $150 Million or $225 Million is tax rebates.


Update: The final bill that passed the Legislature has money set aside to minimize the damage to other private businesses.

Disclaimer: One of my past clients has property in the area. It would be a benefit to my industry and possibly my firm for a hotel with large meeting room space to be built. The reason for me opposing this plan was because of free market principles and government competing in the private sector, or  picking winners or losers and finally cost.

Can something be done? The size of the Salt Palace Convention Center is a problem, too big and too small at the same time and it has not worked as well as it could with the private sector.