Cindy and Peter Emens: A long-shot hotel venture
02/28/2014 12:00 AM
02/25/2014 1:37 PM
A long-shot hotel venture
Public-private partnerships involving millions of taxpayer dollars ($5 million on the table for the $9 million Mayton Inn in Cary) are not meant, by North Carolina statute, to be unsubstantiated projects lacking protection of taxpayer dollars from risk and loss.
Without market analysis suggesting that the $250/night Mayton Inn could be viable when hotel occupancy in the Triangle was 60.5 percent for the 26,658 hotel rooms and the average nightly rate was $85.31 according to the Triangle Business Journal, this venture is a long shot.
This begs the question: Should taxpayers be venture capitalists to the tune of $5 million for a dubious private project that promises to create 40 low-paying jobs?
Furthermore, it is anticipated that the new state-of-the-art library that Wake County wants to build in “downtown” Cary will stimulate economic development and “downtown” vitality in many more ways than a luxury boutique hotel can offer, without risking $5 million in taxpayer money.
So, let the LLC build it on its dime or invite a cadre of private investors to celebrate the profit-sharing. It is enough that the town of Cary is waiving $1.2 million in development fees.
Cindy and Peter Emens
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