EDITORIAL: Time to Stop the Hotel Tax Breaks - They Aren’t Needed Anymore
EDITORIAL
EDITORIAL: Time to Stop the Hotel Tax Breaks - They Aren’t Needed Anymore
First, the city and state have helped to subsidize at least five new hotels that are completed or under development in the past few years.
In and out-of-state developers have received tens of millions in direct taxpayer subsidies and tax stabilizations from Providence taxpayers.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe subsidies worked, they sparked construction jobs and new development, but now it is time to stop.
How do we know it is now that the time is right to stop? It's easy. One of the major hotel projects -- the proposed College Hill hotel by Smart Hotels -- is not asking for any subsidies.
In contrast, ABDO development, a Washington, D.C. based operation, is at the trough looking for millions in tax breaks from the City of Providence.
Jim Abdo is a big-time D.C. developer and now he wants millions in subsidies to rehab the old Providence Journal building behind Providence City Hall. That’s right, the guy who has personal wealth in the tens of millions needs folks from Olneyville to underwrite his new boutique hotel.
Smart Hotels’ proposed development -- without subsidies -- proves that it is time to turn off the spigot.
If Smart Hotels can do it, then so can Abdo.
Being built or recently completed are 669 new rooms — or twice the Graduate Hotel (formerly the Biltmore) being added to the Providence market.
- Homewood Suites Hotel, 5 Exchange Street, 120 rooms
- Woodspring Suites Hotel, 181 Corliss Street, 124 rooms
- Marriott Residence Inn, 111 Fountain Street, 168 rooms
- Hotel Beatrice, 28-32 Kennedy Plaza, 48 rooms
- Aloft Hotel, Innovation Complex, 169 rooms
No longer is there a desperate need for more hotel rooms.
Providence should welcome developers like Abdo and others, but we no longer need to subsidize them.