So the Baltimore Sun editorial board supports the city's plan to build and operate a $305 million hotel near the convention center, the one that backers say is necessary because no p[rivate developers will submit an acceptable plan. Part of the reason for that support, oddly enough, is the notion that the $305 million investment isn't really a $305 million investment.
...The O'Malley administration proposal - a city-financed hotel developed for a fee by the RLJ group and managed by Hilton - would require a city outlay of about $13 million. That figure is based on projections for a successful hotel, with revenues, room taxes and property taxes paying the debt service and excess revenue being returned to the city. The city would own the land and hotel. ...
Do urban planners have a strong track record of accurate prognostication? The ones who suggested that the convention center would draw sufficient private investment for a hotel were certainly off the mark by a good deal.
Moreover, I am not an accountant, but an outlay is still an outlay, right? If I invest $100,000 in a college education, I can't just say that I am making $900,000 simply because I might make that much more over the course of my career. That's a big "might." THe laon is still a loan. And I still owe $100,000 when I am done. And when someone asks, I say I am $100,000 in debt. My balance sheet reflects reality, not potential.
Now consider whether someone should loan me that money if I have already borrowed $500,000 to attend five colleges and dropped out every time. At some point the money is going to dry up. Or at least it should.
Urban planners have been revitalizing downtown Baltimore for decades. It's still not vital.
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