EDITORIAL: A “jewel” or a “thorn?”

Posted on June 20th, 2009 in News and Commentary

EDITORIAL:  A “jewel” or a “thorn?”

The Editorial on Saturday’s Lancaster New Era “Jewel in crown of downtown” goes on to gush: “The convention center/hotel is billed as a top-notch, one-of-a-kind facility, and it does not disappoint.”

Time will tell whether or not it will “disappoint.” The same things were reported upon the opening of the Hilton Hotel in Lancaster Square some decades ago. But because of a paucity of hotel demand in downtown Lancaster (which still exists), it soon had to be taken over by its lender who could not find a buyer for decades and then sold at a tiny percent of the original cost. The Hilton, later called Ramada, and now The Brunswick, never has come close to meeting its expectations.

As for retired Fulton Bank former CEO Rufus Fulton possessing the “vision,” let’s just say that Fulton Bank was content to be a 10% part of Penn Square Partners when they were planning a $40 million improvement. As the project changed and grew towards $180 million, the bank appeared a hostage and ceased to invest further. It allowed its share in the limited partnership to shrink. Finally they were able to sell out to High and the Newspapers.

Furthermore, we suspect that the newspapers also got taken for a ride. However, their executives just weren’t smart enough to take notice. Moreover, they ‘whored’ their news departments which have not recovered the public’s confidence

Meanwhile Dale High’s firm raked in lavish development fees and got quasi-competitive construction and construction management contracts, first dibs on naming rights, along with eventual half ownership of a hotel underwritten by grants, real estate tax exemptions (despite PSP’s promises to the contrary), and city tax payers guarantees. Despite representations by PSP of having made a major investment, most of the so called investment is simply future payments out of anticipated revenue for debt service on the bonds.

Only time will tell whether the Marriott will be Lancaster’s “jewel” or a few years down the road a “thorn.”

Nevertheless, we wish the Marriott and the Convention Center well. After all, it is we taxpayers who have most of the skin in the game.

Leave a Reply

More News

Credo

"....I have never made it a consideration whether the subject was popular or unpopular, but whether it was right or wrong; for that which is right will become popular, and that which is wrong, though by mistake it may obtain the cry or fashion of the day, will soon lose the power of delusion, and sink into disesteem." Thomas Paine, Common Sense, on "Financing the War", March 5, 1782

Blog Archives

Categories

LGH Series

How US Health Care stacks up Against Others

How US Health Care stacks up Against Others

The World Health Organization ranked health care quality by countries.  ...

Nine top LGH executives averaged 50% pay increases in 2008

Second in a series concerning LGH’s 2008 Federal 990 Report In ...

Convention Center Series

January thru June 2006 TimeLine

January thru June 2006 TimeLine

Forty-third in a series by Christiaan Hart-Nibbrig Editor’s note:  The following ...

The Fog of War, Part I

Forty-second in a series by Christiaan Hart-Nibbrig “We – I – ...

Santa Monica Reporter

A human Secret and an inhuman Splice

A human Secret and an inhuman Splice

By Daniel Cohen, Santa Monica Reporter “The Secret in Their Eyes,” ...

Shoot Out in the Art House

By Santa Monica Reporter, Dan Cohen Theaters like Landmark's Ritz in ...