The City of Phoenix spent about $600 million to expand their convention center. Hoteliers didn’t buy the ‘if you build it they will come logic’ and wouldn’t invest in more rooms So the city decided to do that themselves. They spent $350 million more and got.. a Sheraton.
Phoenix still owes $300 million on the property a dozen years later. It plans to sell for $255 million. But to get that they have to offer a 20 year property tax abatement worth $100 million.
Granted the Sheraton Grand is surprising nice for a Sheraton but then again with the way Phoenix poured gasoline on taxpayer money to get it it darned well should be.
The old Sheraton slogan, “belong,” makes a lot of sense here. Phoenix residents do belong here, they paid for it.
(HT: Alan H.)