PORTSMOUTH
The city is paying out more than it is taking in on the Renaissance Portsmouth Hotel and Waterfront Conference Center.
Portsmouth is paying $2.5 million a year in debt service on the project, the city's chief financial officer, Betty Burrell, explained at a City Council work session Monday night.
In 2007, the project contributed $1.3 million in tax revenue to the city.
"We are subsidizing it, but in a lot of ways, I think we're getting it back," Councilman Ray Smith said.
The initial public debt for the project was $39.3 million, but Burrell said that repayment of the principal with interest over 30 years will cost the city $72.9 million.
Private sources paid $13.6 million toward the project, Burrell said.
Councilman Doug Smith said the hotel was never envisioned as a "break even" project but as a place where people could host large civic and social events without leaving town.
He said that it has performed according to expectations and pointed out that the Renaissance has hosted congressional caucuses and NATO functions.
"It brings a level of visitor and guest to Portsmouth that you didn't have before," Doug Smith said.
In 1999, the project was envisioned as a full-service hotel with a large meeting space.
The hotel, which opened in 2001, has 250 rooms and a 25,000-square-foot conference center.
City Manager Kenneth Chandler said that every economic development project should be considered for the value it brings to the community.
He pointed out that the hotel and conference center bring people into the city, provide jobs and generate meal and sales taxes.
The goal is for the complex to ultimately pay for itself, Ray Smith said.
"It's slowly getting there," Smith said.
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
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YOU SHOULD CARE THAT THE HOTEL HOSTS EVENTS
Who cares if NATO or any other organization has a meeting in Olde Towne Portsmouth at the Renaissance?????
Anyone living in Olde Towne Portsmouth. Ask any shop owner, restauranteur, or artist how much out-of-town guests mean to the area. The hotel's impact, just like the convention bureau, is exponential.
On any given day, there are more than 300 people in the hotel spending the night and supporting local businesses. I appreciate the comment; however, maybe you should be grateful that there is a high-end, branded hotel in the city.
Portsmouth already has a bad wrap for not supporting it's own. We don't need to add fuel to the fire by commenting like this.
What's done is done. The city made a deal to build a property in Olde Towne and be a catalyst for downtown development. Olde Towne residents, not long ago, were purchasing the historic properties downtown for less than 200k...now, you can find one for less than $500k.
Without the hotel, I can't imagine what Olde Towne Portsmouth would be like...say goodbye to all of the great restaurants, shops etc. There isn't enough "local income" to support a downtown. Let's be thankful that the hotel is hear, suppo
Here's my question...
What is the value of the indirect income from the hotel? Does it exceed the $1M direct shortfall?
Downtown a bust
While most cities in the Hampton Roads area are recreating downtown areas, Portsmouth continues to wallow in the mire. City Council clearly can not figure out the downtown revitalization, perhaps take that $2.5 million and hire a firm to come in an figure it out for them.
A noticed another downtown restaurant closed up this morning on my work. Fantastic!
GET READY FOR THE LOUISE LUCAS HANDOUT!!!!!
Get ready because here it comes.Charles Whitehurst get your vote ready!
What?!
Let me try to understand...we're losing big money on this large investment...we're cash-strapped to the max; but, it's good for the city? I understand math and despise politics; but, both of these guys should be taken to the wood shed for these dumb comments! Sure makes me wonder who handles their personal investments...
WHAT A SPIN
I cannot believe the spin they are putting on this negative issue. With a cash strapped city the way Portsmouth is and low salaries to Police, Firefighters and teachers etc, they are trying to justify losing money every year. What math course did they attend? A better response would be to be honest and say, yea, looks like a bad decision and we are trying to make the best of it. As a resident of Portsmouth, I could care less about NATO holding a convention in Portsmouth when Portsmouth is losing money every year.
Basic math people
Lets see, the city justifies spending 2.5 million a year in debt services because that will bring in 1.25 million .
I don't have a degree in math, but that looks like a horrible investment.
Policemen are leaving the city because they are under paid, violence escalates with our property taxes, but lets use our tax money to fund a private enterprise.
That hotel should help the failling infrastructure and keep our streets safe. Great Job city council.