AMERICAS – Opposition to public investments in convention centres and connected facilities is particular strong in the States and a project in Portland, Oregon, is the latest to come under fire from opponents.
Planners had originally asked the local authorities to consider a 600-room hotel that would be privately owned and operated, yet public subsidies for a new Oregon Convention Center hotel have spiralled from an initial US$4m to over $100m, opponents claim.
A Mortenson/Hyatt project had been chosen in an initial tender, but public funding soon doubled to $8m, opponents allege, due to ‘closed door deals’.
Portland City Council, however, voted recently to back the Hyatt hotel project.
“Our experience with the development of the Hyatt Regency in Denver, which similarly lacked a headquarters hotel, gives us confidence there will be a significant increase in the attendance of conventions at the Oregon Convention Center upon the completion of this proposed hotel,” said a Hyatt VP, Kimo Bertram.
The projected cost of the construction is now put at close to $200m. Unions claim the project will generate 2,000 jobs.
The Hyatt/Mortensen development team is to invest $117m, with $18m in public subsidies, plus $60m from a construction bond to be paid off from room taxes on hotel visitors.
Fears have been expressed that with such high subsidies, the hotel could undercut its competitors’ room rates.
If final approvals are granted, the developer hopes to break ground early in 2014, with an opening date in 2016.
Photo: http://www.flickr.com/photos/chris-yunker/3366158205/
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