Have you heard the last shoe to fall?
Posted by John B. Kalb - 9/2/09 @ 10:41 pm - Filed Under Featured, Uncategorized
I guess that the time to say, “I told you so” is rapidly approaching. Todays revelation on the front page of the News-Sentinel, that the walkway between the old Indiana Hotel and the unneccessary new downtown hotel will not be open to the public (which is paying $1.3 million for it!) is the latest. Good ole Greg Leatherman can, with a straight face, say that this is in the contract and can’t be changed.
What else is he hiding from his own Redevelopment Commission and the tax paying public? Why in the heck did the city pay for a walkway that will only be used by the hotel? You have been told why already - THE HOTEL IS NOT NEEDED AND WILL NEVER BE SUCCESSFUL - that’s why no entity wanted to finance it’s construction! And why was the bidding on the construction contracts done to enable contractors to see the prior bids by their competitors BEFORE their final bid! Can you say possible “KICKBACKS” ? That’s one way to get the net cost to the builder down. Is this what happened here? We will never know unless someone comes forward who has been a party to any deception that may have been involved.
I recall that the guy from the Indianapolis general contractor was quoted by Bill Brown as saying in a telephone call from our mayors office that he probably should not have written that ”the electrical went to the builder’s ‘favored’ electrical contractor”. Can anyone guess why that entity possibly was favored? I understand that they bid only once, whereas at least one of their competitors bid the job two or three timesbefore the ‘favored’ responded. Yes I realize this was not a “public” bid but the public sure is paying most of the cost with, it seems, very little benefit.
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19 Responses to “Have you heard the last shoe to fall?”
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While I agree that the walkway is a waste…
I guess I just don’t understand why anyone not staying in the hotel would want access. I mean, the single purpose of the walkway is for the hotel patrons to be able to walk to the embassy without experiencing the elements (wussies, it is one block away). Unless we are considering the walkway as another element of Harrison Square, and “The Walkway” will be holding events, why would the public want to go up there? “The Walkway”, as it will be referred to from now on, is connected to the hotel via the third floor. So, anyone wanting to use “The Walkway” will have to go into the hotel, up to the third floor, and then over. Wouldn’t it be just SO much easier to walk the 100 feet?
I’m fairly certain if the public was really hell bent on seeing “The Walkway”, it wouldn’t be a problem. But again, I just don’t see the fascination, is “The Walkway” going to be on Modern Marvels or something?
Also, you say, “You have been told why already” why the hotel is not needed. I guess I haven’t been told why. Last I heard, several conventions that have booked the Grand Wayne, said they would not back out if the hotel was built in time. I believe that shows the necessity for a new hotel.
John, you’ve bitched that the “Grand Wayne is a major failure, and a boondoggle”, but you want to impede its success and allow it not to see its full potential. You are an obstructionist, not a facilitator. I really think you get great joy failure, if it would mean you’re correct; which you are not, and have not been throughout this entire process.
All this talk about “The Walkway” is making me curious though, is it going to take on some sort of mystic? “What happens on ‘The Walkway’, stays on ‘The Walkway’” or “Rocking on ‘The Walkway’ is ELVIS COSTELLO”
Cole,
What are the names of these conventions that have promised not to back out if the hotel is built? There are plenty of hotels in Fort Wayne as it is.
Cole,
I have repeatedly heard from the City of Fort Wayne and the Grand Wayne Center that if they just had a brand new hotel they would book a whole lot more conventions.
I agree with Robert; where is the proof?
I have been considering filing a freedom of information request to get The Grand Wayne Center’s revenues so I can compare the last couple of years to each other…
Mike
A publicly funded walkway that I cannot use whenever I want?
Outrageous!
Tonight I will go to the Coliseum and…oh, wait, cannot get in the coliseum. Tonight I will go to the Library..oh, wait, they lock that too. I know, A school! Paid for by tax dollars, it should be open to the public…oh, its not either?
Hmmmm…maybe this is just another excuse for Harrison Square opponents to bitch.
Conventions book well out in advance. So, if you don’t meet a certain set of criteria, you’re not considered as a possible venue.
Convention organizers will not look at a city’s entire hotel stock. They only look hotel stock in the immediate surrounding areas. If you are from out of town, they don’t like you running around the city trying to find the convention.
As for a list of conventions, I can’t find the news article that said listed 3 or so of them that agreed to come to Fort Wayne on the prospect of 250 more rooms being next to the convention.
I used to travel for business 25+ weeks a year. Many of these trips were for trade shows.
I would not stay at a hotel “in the area”. Why? it costs me more. I would most likely have to rent a car, pay for parking, etc.
that is why MOST convention centers have hotels attached- it draws business.
Hey Kev,
pppsssstttt, the Hilton is already attached and only about 50% occupancy.
Kevin Knuth,
Give me a break…
It was absurd in the first place that the City subsidized the silly walkway; however, it is even more absurd that the hotel has decided it will not be open to the public.
Good Grief.
Mike Sylvester
Has anyone heard of diminishing returns? To put it simply, to go after that last dollar, you will end up spending five to ten times to obtain it. What a business wants to do is play to the average, not the largest audience. Playing to the largest audience always ends up with a much lower utilization rate. Lower utilization rates increase costs. Look at Healthcare. The US system is based on waiting to treat someone. Most other countries like Canada, England, Germany, Singapore, Taiwan the people wait to be treated, increasing utilization, driving costs way down.
The Hilton is a large drain on the budget. The guarantee that it earn 16% a year is absurd. The same deal was struck with the Harrison Square hotel.
If private investors need enticements to invest, in a project that government thought up, then taxpayers need to walk away.
Hey Tim, the hilton is only 50% because there are not enough hotels DOWNTOWN to attract bigger shows.
The Hilton is only occupied at 50% because there are not other hotels downtown?????????
Worst. Reasoning. Ever.
Kevin,
You have been drinking the kool aid.
I admit that it may be possible that the Grand Wayne MAY draw 2 or 3 larger Conventions.
That it no way cost justified subsidizing a new hotel.
Mike
I stand by my statement.
If you do not have hotels by your convention center, it will never realize its full potential.
Currently, if you want to have a convention downtown, you are limited to 246 rooms in the attached hotel. That is NOT going to draw big groups.
kevin,
Define big groups? Who do we compete against? Name a town OUR SIZE that has more than 246 rooms attached to their convention center? We don’t compete against Indianapolis, Chicago, Cincinnati,Columbus, not even Toledo. Those cities have other things to do downtown besides a baseball stadium that works only at the most six months out of the year.Adding hotel space downtown for the myth of bringing convention people to Fort Wayne is a pipe dream. Except this time the pipe dream became a reality for Graham and boys. Thanks for leaving us the bills. I understand your political party loves throwing money to fix things and when that doesn’t work you just want to throw more. Enough already!!!
“If you do not have hotels by your convention center, it will never realize its full potential.”
Ok, let this play out. We build the size of hotel that allows us access to host larger conventions. Is the plan to host only that size convention? Do we not plan to host the smaller conventions? If we host the small conventions as well, what does the capacity to hold fewer larger conventions do to utilization rates? If you want the answer I have a model that will show you what happens. Maybe a chart showing size and utilization rates is what are needed here.
Toyota when they began gaining market share did not build the high end cars; they built a car with no options. This makes building a car simple. It also reduces the need for special fixtures, dies, tools and scheduling it all to arrive when you need it and where you need it. Making the same thing is easy. Proving options is hard. When you attempt to provide every option conceivable you drive up costs. This is no different than adding hotel space to get 5% more conventions that leave this added space vacant unused for 95% of the other conventions
Cole - Please quote me the date and the media where I ever called the Grand Wayne a boondoggle. You are creating things out of nothing so that our real boondoggle(H.S.)looks good. Well, you have failed to do so!
I have said that the G.W. will always be a tax revenue sponge, but I am willing to live with that. But a boondoggle? Nope. A boondoggle is a make-work project with no value. That sure fits H.S. except for the ballpark - All the value it is creating is going to Atlanta, Georgia via Hardball Capital - We just get the bills for utilities, mantainance and debt repayment!
That’s part of a real BOONDOGGLE!!!
Cole and Kalb,
I have called the Grand Wayne a boondoggle.
It is a complete waste of taxpayer dollars.
Mike
Boondoggle - http://www.merriam-webster.com/dictionary/boondoggle
What is the difference between a tax revenue sponge and a boondoggle? According to Websters it is “a wasteful or impractical project or activity often involving graft”
In my opinion the Grand Wayne meets the definition of a boondoggle.
Cole and Kalb,
I have called the Grand Wayne a boondoggle.
It is a complete waste of taxpayer dollars.
Mike…