A contributor asks:
“Would someone please explain to us exactly what the government is doing in the hotel and convention center business? If ever there were an ‘industry’ that should be completely dependent on private investment—primarily because of the unusually high degree of risk involved—it should be the ‘hospitality’ industry.
“I have no problem with temporary tax incentives for economically blighted areas; programs like LERTA (which gradually phase-in real estate tax INCREASES that result from site improvements) literally cost taxpayers nothing in the short term, and benefit us all greatly in the long term. I don’t even mind low-interest loans for economic development, as long as the taxpayer dollars involved are secured with real estate collateral.
“What I DO mind are the far too many giveaways of literally tens of millions of taxpayer dollars to primarily benefit already wealthy corporations. What is wrong with this picture?”
To which we reply:
There was a farmer in Australia whose string bean crop suffered from a drought so the beans were tough and almost inedible. Nevertheless, he was able to sell them to an exporter at a profit, who in turn sold them to a US importer for a profit, who sold them to a distributor at a profit, who sold them to a chain of super markets at a profit, who sold the string beans to Mrs. Jones at a profit.
Mrs. Jones served them to Mr. Jones for dinner and he exclaimed: “The string beans are tough and almost inedible.” The next day Mrs. Jones complained to the super market, who complained to the distributor, who complained to the importer, who complained to the exporter, who complained to the farmer.
The farmer’s response was “Those string beans weren’t for eating, they were for selling!”
The irony with our Convention Center project is that the Lancaster Newspapers, Inc. didn’t make a dime from the venture and may not ever recover its investment, yet ended up with its reputation shredded. On the other hand, the High Group earned fortunes as project manager (around $55,000 a month for years!) and as contractors and S. Dale High may some day exercise his special right to have the center bear his name.
I might agree with your reply but for two items:
1. Does anyone know what exactly was the actual cash investment of Lancaster Newspapers, Inc. in the convention center project? and,
2. Before I weep at the loss of reputation of Lancaster Newspapers, Inc. I would like them to restore the reputation of Molly Henderson which they shredded for no other apparent reason than to protect their partnership rights in the project. They are free to make this restoration voluntarily before her case goes to trial early next year.
As for S. Dale High, I assume he will exercise his naming rights to the convention center when either the project becomes successful (and I certainly hope it does) or after the 20 year mortgage is paid off (from operations and tax revenues) and he and Lancaster Newspapers, Inc take full title to the debt free and tax exempted hotel and convention center.
(note: If this latter scenario does not reflect how the deal will work, perhaps someone can explain it clearly so that even a well educated and fairly bright fellow like myself can understand it and without having to hire a legal consultant like the county did and whose resultant 50 questions were completely and arrogantly ignored by all the partners including Lancaster Newspapers, Inc.)