It appears that Mesa is aiming for the top of the heap as a Valley convention hotel/resort destination.
That’s not just good news, that’s astonishing news for a city that comes up short too often on the respect scale.
There are “buts,” and we’ll get to those after a little background:
Gaylord Entertainment announced on Wednesday that it will build a mega resort/conference center on what was once the GM Proving Grounds in southeast Mesa.
The center will dwarf any similar Valley facility, such as the luxurious Marriott Desert Ridge Resort in north Phoenix.
Gaylord’s resort center outside of Dallas, the Gaylord Texan, has become the busiest such convention hotel/resort in all of Texas.
The new Gaylord resort center in Washington D.C. is the largest such center on the entire East Coast, Gaylord’s chairman and CEO Colin Reed told a throng of VIPs assembled at the Mesa Arts Center.
There will be nothing like it in Arizona and surrounding states, Reed told the assembled influentials.
An exuberant Mesa Mayor Scott Smith said Gaylord Entertainment’s investment in Mesa will approach $1 billion. That’s not chump change, even in Scottsdale.
Even former Mayor Keno Hawker, who is not given to superlatives, said afterwards that center would be a “great anchor” for future development at the proving grounds cite.
But he also asked the $64,000 question. What are the give-aways?
Hawker raised one of “buts” I mentioned early on.
It sounds like a boon to Mesa, but what are the incentives?
Mayor Smith said those would be made public in about a week. He did say that incentives would amount to “pennies on the dollar.” In other words, he believes the investment will pay handsome dividends.
In checking my Wall Street Journal online, Yahoo’s financial site, and Gaylord’s Web site, I could find no indication that the company is paying handsome dividends to its shareholders.
The company’s second quarter report declares the company is doing well considering the “difficult environment” and considering “modest” year over year revenue growth at individual properties
Which brings me to another “but.”
In the end, Gaylord’s locating here only extends the Valley’s dependence on tourism and travel. And we all know how cyclical that is.
At this moment in time, it’s not the kind of business that can be counted on to feed the local economy with high paying jobs year after year after year.
Another “but” is that the center is designed to be self-containing. People from all over the continent arrive for their conferences. They fly to Sky Harbor, take a cab or shuttle to the center. They check in and never have to leave. All their needs are taken care of under one roof.
There is no guarantee that dollars will flow through the local economy, other than from employees.
Speaking of employees, Gaylord’s CEO stressed that the company treats its employees (The company calls them stars) well.
“But,” no matter what you call them, they are still service sector employees, and they’ll work in a sector whose wages don’t match up to, say, Boeing or Intel.
I’m happy that the city appears to have landed a big one, but….
 Big news for Mesa, butSeptember 3rd, 2008, 2:42 pm · 19 Comments · posted by Jim Ripley19 CommentsLeave a Reply |
I was at the Gaylord facility for conventions in Dallas two years ago and in Nashville last year. Yes they are all inclusive, but both times i did leave the facilities and spent money.
Dallas I left for dinner, but i only left once. The reason was there just wasnt much around. IN Nashville i left often. There were local clubs, restaurants, malls, attractions and other things. If you give them something close to go to they will leave and spend money. This is a great idea and i welcome the new tax dollars it will bring to the area.
Jim: former Mayor Hawker was introduced at the event this morning. I was sitting right in front of him.
Every day, I say a prayer of thanks that I cancelled my subscription to the Tribune. I fully understand your point of view and the question you are asking but you are so negative in your delivery. This paper just searches out a negative slant on everything.
What about the hundreds if not thousands of construction jobs this will support during the construction? What about the sales tax revenue created by the retail development that will be part of and surround the project? I am assuming that there are no sales tax incentives since Mayor Smith has been steadfast in his claim that retail sales tax incentives will never be given.
Thanks, Dennis. I compared notes with one of our reporters, and her notes confirm that Hawker was introduced among the dignitaries. The blog has been corrected.
Jim
Roger,
Good point on the construction jobs. That pumps a lot of money into the local economy–at least for a time. So you’ve cancelled your subscription because I’m not a lap dog? But you clearly still read us on line–and within minutes after my posting. That counts. Thanks.
Jim
Thanks Jim for your prompt response. I was a little heated when I first responded. I don’t expect you to be a lap dog at all. That would almost be worse! I fully expected the questions to be asked, as I stated, I also have the same questions. I was disappointed in how it was spun. I feel the Trib is always looking for the controversial (even if it has to be created) spin on stories. If you were to say, “This is a great thing for Mesa, will have huge implications for the area, and as all good things- there are questions. Smith has stated details will come out next week and we are anxiously awaiting the details. Will it cost Mesa taxpayers money? Will the service jobs that come with resorts have enough of an impact to outweigh whatever costs are there? How much does Gaylord depend on regular tourists in addition to the convention business?
Your article instead came off very negative and I think missed the fact that this isn’t like any other resort or destination. If this were the Marriott announcing a resort I would expect every single one of those questions. For someone who was at the presentation and did a little research on Gaylord (I wasn’t there but know enough about Gaylord), I was just a little disappointed at your response since this isn’t any old resort.
And by the way, I am a patron at the advertisers and consistently click on your advertising links on the web pages. My company even advertises with the Tribune. No ride is ever free.
Another blown catalyst for downtown redevelopment. Rebuild your core then move the development out to the suburbs.
Downtown would be great but this is better suited for Gateway area. Google Gaylord Hotels and see what they’re all about. The 18 hole golf course is a major part of it.
Jim- regarding the money spent inside of the complex- isn’t the roof under the City? Isn’t that still the local economy?
i wouldn’t set a single toe inside a “joe bob” entertainment facility.
Let the Grand Ole Opry guy stay in TN. Let’s have somebody modern build a resort. Who needs another grand ole opry? NOBODY, that’s who.
the Tribune headline writer needs to be fired. Worst description ever. This isn’t the Grand Ol Opry. They just happen to own it.
This is an absolutely ENORMOUS positive for Mesa and the East Valley!! And to come out with a project of this magnitude during times like this… Other cities would give their left nut for half as much (Glendale doesn’t have any left, so that’s probably why they didn’t get anything).
I love how Jim Ripley assumes that everyone will fly in to Sky Harbor and drive over to the resort… Did he forget that there’s a FREAKING HUGE airport next door that is growing everyday? When this project comes out of the ground in three-four years, they’ll be even more flights and airlines to choose from.
As far as public funding is concerned, they’re using a CFD which means a property tax on those who choose to live there. Perfect fit. Its being done all over the US.
Go GAYLORD! Go MACERICH! God bless DMB!
While tourism is cyclical, hotels don’t shut down during the shoulder months — like any industry, they plan on it and find ways to keep employees employed and income flowing. And Gaylord’s golf course, restaurants, amenities and surrounding businesses most certainly will be frequented year-round by local residents.
It’s also important to note that not every Arizona resident is qualified to work at Boeing or Intel and might prefer or even need the flexible hours, good benefits and variety of positions offered by a giant like Gaylord in the service industry.
Even though light rail won’t drop off right near our airport, it’s bound to draw people into other parts of the Valley to see the well-known sites in Tempe, Glendale, Scottsdale, etc, as well as places close to the resort center in Mesa. I think this is a huge step in the right direction for Mesa and despite the few “ifs and buts” associated with growth and progress, it’s going to be one giant positive for Mesa and the Valley.
This is great. It will be a huge help to Mesa in all aspects.
People staying under the roof have no benefit for the city? I stayed in the Gaylord Texan in Dallas (Grapevine) and never left the site. I went to all five of the restaraunts/bars, and went to the night club on-site. I bought items at the little convenience store . . . when I checked out, I got the bill and everyone of the charges carried a sales tax. How does that not help the local infrastructure?
Joe,
Sure it will benefit the city, particularly the tax spenders at city hall. The city depends on sales tax receipts to pay the bills and naturally works very hard to keep the revenue coming. From that vantage point, the city doesn’t gain a whole lot from places like Boeing, MD Helicopters and Pearson, one of the nation’s largest producers of educational software, which a couple of years ago pulled out of Mesa and moved to Chandler without Mesa having a clue. No question that landing a Gaylord conference center is quite a coup for the city, and I applaud Scott Smith for his leadership. But when the “give-aways,” as former Mayor Keno Hawker described the incentives package, are put on the table, Gaylord has to be kept in perspective. My perspective is that the hotel’s contribution to a community’s economic and social well-being won’t be as great as Intel’s in Chandler, General Dyanimcs’ in Scottsdale or Boeing’s in Mesa. We could all learn a lesson from Chandler’s focus on high-paying jobs.
Jim
So if the giveaways amount to $0 from Mesa taxpayers, would you consider this a success? Again, I am assuming that Mayor Smith and the other council members stick to their no sales tax giveaways pledge. Hawker oversaw two of the biggest giveaways, Waveyard and Riverview so maybe he is making that statement based on what he is used to doing in the past. I hope that the new leaders are really doing things differently and that the “give-aways” will not mean Mesa taxpayers are cutting checks.
I am excited about all of the opportunities a resort like this will provide for our community. While you certainly make some good points, I believe that the Gaylord hotels will bring tourists here for vacation as well as a significant amount of people for business trips and conventions. For 10 years I have traveled out of town for business and on these trips we not only work and spend money at the hotel we are staying at, but we also participate in regional events such as sports, entertainment and the arts. I have no doubt that bringing a significant amount of people to Mesa will have a positive effect on all of our local businesses. DMB has done our community a great service that will continue to pay off for years to come.