The new Convention Center Hotel that developers would like to build next to and connected to the Morial Convention Center in New Orleans is in the news. The Times Picayune carried the story and a large ad and a picture of what the development would look like. Some information given in the TP story and ad about the development are as follows: Dallas based Matthews Southwest Hospitality are the developers of the $558 million addition. The 1200 room hotel would have a $282 million impact on the local economy, $18 million in new city taxes and $6 million in state taxes annually and 1900 new permanent jobs. The hotel would stimulate economic activity and be the center point of a fabulous new entertainment district that will include residential, retail, dining and entertainment venues, creating a dynamic destination.
The hotel would rely heavily on subsidies that would need state and city approval. The need for public support has been questioned by Mayor Cantrell and the Bureau of Governmental Research. With such a rosy picture painted in the TP this writer questions why the project needs public support. (Corporate Welfare) Should not the developers be responsible for the full cost of the project? An if public support is given by the state and the city how much a loss in city and state taxes will that cost? The Trump-GOP tax cuts gave the developers a 14% reduction in their corporate income tax. The business community always wants more at the expense of the cities and states and the people.
The state of Louisiana and the city of New Orleans needs all the tax revenue it is due. We are at the bottom of the scale in many areas of need and it is time and good business for the state and city to obtain the proper financial return from business who want to move here and take advantage of what the state and city has to offer and that is much more than corporate welfare.
This commentary written by Joe Lorio
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