You'll remember that back in March 2005, the City of Fayetteville got into the risky Tax Increment Financing business. That's where we take property taxes away from the public schools, buy millions of dollars worth of bonds, and give it to help private business make more money. We were told--and apparently the Mayor and Council actually believed-- that it is supposed to generate even more tax dollars to pay off the bonds. Uh, right.
The Renaissance Tower Marriott was supposed to be open for football season last year. Then it was supposed to be open for football season this year. Well, two and half years later, the taxpayers are out $3.7 million, and all we've got to show for it is a big ugly hole in the ground. That, and some vacant buildings where the Hoffbrau and some other businesses were forced to close.
The small ray of good news in all of this is that the City had a contract with the developers. If the hotel is not open for business by September 1 (less than three weeks from now), the developers are obligated to pay back liquidated damages of $835 a day for their breach of the contract. That comes to $25,042 per month that can be applied to paying off those $3.7 million in bonds the City rushed out to buy to help the developers.
A contract is a contract, and we expect our elected officials to protect our interests and our tax dollars. I also expect the developers to try to weasel out of their obligation, and I expect the Chamber to be on their side. I will not be surprised if Developer Dan and his compliant vassals on the City Council try to tell us that we should let it slide and continue the free ride for developers. I am surprised that only Bobby Ferrell has expressed any concern about the sanctity of one's word and the meaning of a contract as an obligation to be met.
Let's keep a close eye on this one. It will be on the City Council agenda next month.
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