The City of Fayetteville may be taking the incentives debate to a new level, and hopefully we’ll have that debate in a new four or five-star hotel that the City will pay you to build.
Unsatisfied that no luxury hotel has found the economic conditions right to build in Fayetteville, the city has hired a consultant for $5,000 to help them decide how to bribe lure a four or five-star hotel to the area.
Apparently this need has arisen because relocated military generals need fluffier pillows, thicker sheets and day spa services as that is what “they expect.” Really? America’s greatest military leaders will not come to Fayetteville unless they can get a massage and pedicure? Somehow I doubt that.
So here we have, once again, government attempting to force a market to be created when one clearly doesn’t exist. If there was a true need or desire for a luxury hotel for Fayetteville where a profit can be made, wouldn’t someone step up and fill the need? Instead, government thinks it can distort market dynamics and force a hotel to be built when there isn’t a need for one.
The average Fayetteville resident is going to pay for a luxury hotel but will not afford to stay in it. That’s sure is sound policy and governance.
Chris, you should look into the WIlmington situation where consultants told them to build a convention center, THEN a hotel which has fallen through multiple times and after tons and tons of money.
The consultants are the modern day snake oil salesman. Anyone interested in this should do look at this report by Heywood Sanders.http://www.brookings.edu/reports/2005/01cities_sanders.aspx