From.....Tomorrow Hall

Folks, here's the truth about this Hotel Topeka deal. The city is selling a 224-room hotel on prime Topeka Boulevard for one million dollars. That is pocket change for a property this size. Why so cheap? Because the hotel is a money pit and the City does not want to carry it anymore.

The buyer says they will put in $17 million in renovations and rebrand it into a Wyndham "Dolce" upscale conference hotel. Sounds great on paper. Jobs, tourism, conferences, a shiny new building. But here is the catch:

The City is giving away 10 years of property tax breaks, sales tax exemptions, and $6 million in bond support. That means taxpayers are footing the bill up front so a private company can gamble on making this thing work.

If it succeeds, Topeka gets more tourists, more jobs, and new life downtown. If it fails, taxpayers just handed out breaks and forgave millions in revenue, and the hotel still sits there.

The buyer can walk away during the inspection period with little consequence other than losing a $100,000 deposit. Meanwhile, the City is locked in.

This deal might work out, but it is far from a sure thing. Topeka citizens are carrying the risk while a private developer collects the reward. Government is once again betting your money on promises that may or may not deliver.

If the City wants to protect the people who pay the bills, every single incentive should be tied to results. Jobs created, renovations completed, hotel revenue produced. No results, no taxpayer money.

That is the only way this becomes a good deal for the citizens of Topeka.

Henry McClure  
785.383.9994
sent from mobile 📱
time kills deals