This past Thursday, Austin City Council members passed two motions to spur downtown growth and tax base, both sorely needed. The first motion directed the City Manager to develop a plan to help break-ground on a second large-scale, convention hotel, similar to the 800-room Hilton constructed back in 2003. Figures show that convention business grew slightly over 50% after the Hilton was constructed. However, the investments made on the City’s behalf, similar to this recently proposed stimulus, fell short of projections (see graphs below). This is partially explained by the small and spread-out convention package we offer to businesses due to our limited supply. An expert in the business said “it’s tough to make a case for the additional hotel when Austin hasn’t drawn the projected benefit from the one it already has. Even if you do this, what advantage have you created? You certainly haven’t capitalized on any unique advantage to Austin.” Personally, I think we should invest in a State-of-the-Art convention technology that is better than any other in the nation with a hotel that is designed in such a fashion that captures the tech-savviness of our great City setting us as an Icon for innovation and creativity.
The second motion was to direct the City Manager to compile a $100 million transportation bond package to fund the improvement of roads, sidewalks, bike lanes, and trails. While this will do wonders in boosting our image as a pedestrian friendly downtown, homeowners’ are likely the one’s to foot the bill with increase in property taxes to increase bonding capacity.
The full story: Austin Business Journal; Austin American Statesman
The full story: Austin Business Journal; Austin American Statesman
