Tuesday, November 6, 2012

Headquarters - a zombie

In 2009 the Headquarters convention hotel was declared once again dead. It wasn't the first time nor the last. The rationale then was that "[e]stimates we received this week of likely future revenues for the Visitor Development initiative are not sufficient to support the project’s predevelopment costs." [2009 Joint Statement found in Portland convention center hotel is dead.]

So what has changed? Apparently nothing. From the Oregonian - one would never guess that this project has been subject to controversy ever since its initial proposal many years ago. In 2009, the estimated revenue wasn't even enough to justify spending $12 million on predevelopment costs.

Nothing has changed - it is a project that cannot be economically justified - and they don't even try. It is pure politics and the greedy who find it all too easy to reach into the pocketbooks of Portlanders. The money ain't coming from anywhere else.

Hyatt has avoided (postponed) its labor troubles. But with the city taxpayers on the hook for the development - the Hyatt developers take little risk. This is likely to be another Nines where it is doubtful that they have yet made good on their deal with the city.

And can one just imagine the future operational difficulties given the ongoing rift between Hyatt and the union. Like the Lloyd Center area is such an ideal area for a convention hotel. And why won't the downtown hotels suffer? What keeps them so quite?

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