IS IT TRUE August 31, 2013 Special Saturday Edition on Fort Wayne Hotel
IS IT TRUE The City of Evansville thinks what Fort Wayne did by subsidizing a hotel is great? In fact, the Mayor may have the Ft. Wayne mayor testify on Sept. 9. This is the project that the City of Evansville’s experts told them has similarities to our own hotel project and is worth looking into?…the available data indicates the City is wrong?…the following summaries and links will shine some light on just what the reality was in Fort Wayne from the city inserting its money into the free market when it shouldn’t have?
* The Indiana Economic Digest wrote an article in 2007 about the then
proposed Fort Wayne hotel laying out that in order for the project to succeed, Fort Wayne as a City will need to bring in new tourism and raise occupancy rates. This is the same point the existing hotels in Evansville are making – the project is over sized and cannot succeed given the limited data available. Click below to read that Economic Digest article.
* It did not work. In fact, according to Fort Wayne’s CVB equivalent, occupancy rates were at 53.8% in 2007, the year Fort Wayne decided to move forward with their project. As of April 2012, they were at 46.1%. The occupancy rates never even got back to where they were in 2007. Click Here for the data.
* Here is what might be most telling: In 2012, the Fort Wayne Marriott was foreclosed on by its bank due to nonpayment on loans. This is what the Indiana Economic Digest suggested was the problem, and is the “cannibalism” that can result when the market cannot sustain the supply. Click here for an article on the foreclosure.
IS IT TRUE that this is what the existing Evansville hotels are trying to tell people?…you can have all the hope in the world that people will come to Evansville to support this huge investment, but when it doesn’t work – businesses fail, people lose jobs and those unfortunate results come from seeds planted and purchased by the City?