Hotel Issue Deeply Dividing Republicans

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Posted without opinion, bias, or editing.

GetAttachment-5.aspxby Brad Linzy

Not long after Republican Precinct Committeeman Phillip Schultz decided to create the Facebook page “Citizens of Evansville Against a Taxpayer Funded Hotel”, another page cropped up on Facebook borrowing heavily from the opposition formula calling itself “Citizens of Evansville For Progress on a Convention Hotel”. The pro-hotel page even went so far as to swipe the opposition’s artwork, replacing only the name, which itself reveals something interesting.

Rather than simply replacing opposing terms in the name – i.e. rather than calling themselves “Citizens of Evansville For a Taxpayer Funded Hotel” – this page’s creator dropped all reference to taxpayers, opting for the more palatable (and telling) term “progress”.

In the succeeding days since their respective creations, each page has garnered a sizable following and some interesting demographic data has come to light. As the CCO previously reported, according to Facebook statistics, the pro-hotel page sees its largest group of supporters in the 35-54 age range, while the opposition page sees its largest support group in the 25-34 age range.

This is backward from what one might usually expect, which makes it interesting. The prevailing theory seems to be that young people are skeptical of such a large subsidy for a hotel because they realize that they will be the ones ultimately bearing the brunt of the expense over their working lives. Whatever the reason for this subtle demographic difference, one similarity between the pages is even more striking – both pages were created by Republican Party Precinct Committeemen.

In a revelatory exchange in the CCO comment section, Phyllip Davis, a PC in German Township Precinct 6, has revealed he is the progenitor of the pro-hotel page. This revelation further underscores the divisive nature this hotel subject is having on the local Republican Party. With its top two most visible representatives – the Mayor and the Chairman – being in favor of taxpayer subsidies for a private business, a stance more typically held by liberal Democrats and “Progressives”, many Republican party members, including Schultz, have seen this issue as a fight for the heart and soul of the Party.

The 2012 Indiana State Republican Party Platform states that the Party advocates fiscal responsibility: “We are committed to…Fiscal Responsibility by living within our means. This means keeping taxes low and government spending under control.”

In the section of the platform entitled “Limited Government”, the Party advocates facing obstacles in a “in a sober and meaningful way” while being “more judicious” in the way services are provided, and “ridding our system of fraud, waste and abuse.”

“Living within our means is more than a phrase.” the platform continues. “It’s the way we approach every fiscal decision made.”

On the subject of jobs and economic growth, the platform is clear: “The proper role of government…is to get out of the way and let Hoosier entrepreneurs and job creators build, grow and expand their private enterprises…”
In the section devoted to the taxpayer, the platform is unmistakable: “…promoting policies that encourage growth and investment in our state’s economy and keeps taxes low is among our highest priorities.” This section goes on to say, “…government should only request of its citizens the dollars it needs to provide necessary services. No more.”

Clearly this philosophy of providing only “necessary services” excludes a luxury convention hotel half-funded by taxpayer promises to pay at a future date, and the proponents of this hotel within the Republican Party – Mayor Lloyd Winnecke, Chairman Wayne Parke, Precinct Committeeman Phyllip Davis, Precinct Committeeman E. Lon Walters, County Commissioner Marsha Abell and others I might have forgotten – are at odds with the Indiana State Republican Party Platform in a very fundamental way. The platform contains no less than 27 references to “taxes” and “taxpayers”, and in none of these references is the progressive/liberal stance taken that taxpayers should be in the business of funding private companies for the “betterment of the collective”.

This issue has created a deep schism within the Vanderburgh County Republican Party. I have personally had occasion to have been harassed and harangued on the merits of this taxpayer-funded hotel by not only Progressive Democrats, but by the top representatives of our Republican Party. The loudest proponents continue to come from within my own Party – a Party that clearly professes to advocate against this sort of thing in its own platform.

My fear is this issue and others like it will continue to divide Republicans until some leader steps forward who can clearly articulate true, paleo-conservative Republican positions and focus all these disparate, flailing, neo-liberal viewpoints into a coherent, overarching philosophy to move us forward. Without this, the Republican Party can look forward to another 20 years of local irrelevance.

2012 Indiana State Republican Party Platform: http://www.indgop.org/ContentFiles/476/2012%20Platform.pdf

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16 COMMENTS

  1. NOTE: Since writing his article I found out Precinct Committeewoman Brenda Bergwitz is also against a taxpayer funded hotel. She is being admonished by Chairman Wayne Parke now. Coincidence?

  2. Maybe the ERBC will rent a desk in the corner of Hafer’s Office for the Local Republican(?)and Democrat(?)Leadership(?). That would probably save both Parties Money, and validate their fiscal prudence.

  3. It seems to me like both groups, 23-34 and 35-54, are sort of overlooking the obvious and the effect it will have on their personal finances.

    Go back to this article:

    https://city-countyobserver.com/2013/08/26/2012-erc-report-to-city-council-shows-deficit-spending-and-260-million-ford-center-obligation/

    and click on the link titled:

    2012_ERC_filing_with_City_Council

    Look at the various retirement dates on the bonds listed here and remember we are discussing adding another $37.5 million plus interest to this list.

    Both of these age groups will be paying off this debt throughout their respective working years and well into their retirement.

    Even though most of you are not employees of these companies, you will be working for VECTREN and Berry Plastics, and if this hotel goes through HCW Inc.

    Hell, you do not even get invited to the Christmas party! You are being played for fools by a group of millionaires who want you to believe that it is your civic duty to unquestionably support their businesses.

    Snap out of it! Follow the money.

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  4. To Brad Linzy–

    As usual when you comment in the CCO , you get most things wrong and you state things as facts when it just your opinion. You do have a good command of the English language. It is to bad you do not display this talent in a more constructive way.

    It is my observation Convention Hotel Supporters cover the complete voting age range. This includes people over 55 and over. An over whelming majority of the voters support this project. If the elected officials do what they are suppose to do and that is represent the voters, they will vote for this project because that is what the public wants to happen.

    This hotel project is not a Democrat vs. Republican political issue. As for as Republicans are concerned, the vast majority of the Republicans support this project. The public town hall meeting held in each City Ward were well attended and again the project had a over whelming percentage– made up of both Democrats and Republicans–support this hotel project.

    It is a fiction of your imagination to state the Republican Party has created a deep schism split on this issue. I bet there is less than 10 Republicans in the City who are not for this project. I welcome anyone to contact me to express their views. Republicans are strongly behind this project.

    I fully support the Republican Party Platform and I am not at odds with it. Do you support it? I suggest you check out the Republican Vanderburgh County Website to see where I stand: http://www.vanderburghgop.com/page/home .

    As far as my Republican leadership is concerned, I was elected Chairman by a 10 to 1 majority. There are more Republicans holding office today than there ever has been. Republicans have a majority on the County Council, a majority of the County Commissioners and there is a Republican Mayor. I think you need to check the dictionary on the definition of “irrelevance” . Republicans are alive and well in Vanderburgh County.

    Brad to be a good effective reporter/writer/commenter you need to have the facts correct. It is not proper to make them up.

    Wayne Parke
    Chairman Vanderburgh County Republican Party.
    wparke@wowway.com

  5. Wayne,

    As always, thank you for your feedback. I find it entertaining if not enlightening.

    If you want to retreat into a bubble of your own device and pretend there is no Republican schism and that what you’re doing is hunky dory and in line with conservative principles, I won’t talk you out of it. You will eventually be your own downfall.

    Local Republican irrelevance is evident in the fact that you can’t be confident raising money unless it’s from the same contributors who give to the Democrats, which leads you, naturally, to act like one and buy votes with bloated, exorbitant, and most importantly visible public works projects. And no offense here to blue dog Democrats, they are wiser and more conservative than the Republican leadership.

    Your example of Mayor Winnecke and Marsha Abell as evidence you’re doing a great job and the Republican Party isn’t completely irrelevant in its current incarnation would be hilarious if it wasn’t so sad.

    Both of these politicians have been nothing if not cheerleaders for more taxing and spending than any Democrat who has ever held their positions, and at least one of them, the Mayor, has such well-documented support within the upper echelons of the Democrat Party locally, that some Democrat operatives even had to come over and help you canvass and makes calls to get him elected.

    I redouble my call for your resignation and I further call upon all PCs who are fed up with seeing their Party become a ultra-liberal stronghold to speak up now.

    I know many who are unhappy and scared you will come after them if they speak out. The Brenda Bergwitz episode is just one example of how you attempt to corral dissent. I know there are other examples.

    At the time you were elected by this supposed 10-1 margin (which I question severely), you had not yet completely shown yourself as the true liberal tax and spender you are. I think your grandpa routine fooled many people into thinking you’re a nice, conservative guy and would make a great leader. The evidence shows they were wrong in trusting you and at least one person who said she voted for you, Mrs. Bergwitz, is now saying she wishes she could take that vote back.

  6. Brad, I can’t say that there is a divide in the party locally. The “Republicans” that I know that are against the plan are either Libertarians, like you and your co-admin or rigid ideologues whose rigidity is useless in any discussion. As I have said many times, Republicans are for responsible government spending. A $37.5 million dollar investment with a projected return of $385 million dollars in new spending and $121 million dollars in new wages is responsible spending. Life is not black and white. There are plenty shades of grey. I support Chairman Parke, but I was at the City Council meetings supporting the plan before the party took a position. Republicans want government to make the economic environment conducive to private growth. This hotel will do this. It will create retail, dining, entertainment and transportation opportunities. One example would be Unity Taxi. If there are more convention visitors, there will be more calls for taxis to take the visitors top the places that they want to go. Unity’s business increases they get more cars and hire more drivers. The extra revenue ensures that their marketing budget will allow them to advertise on CCO. It will trickle throughout the entire community.

    On the subject of the state of the Republican party under Chairman Parke: Like I’ve said, I support Chairman Parke. In my time as a PC, he has fulfilled my expectations of a county chairman. With that said, we cannot sit back and pat ourselves on the back for our successes. In my opinion, no one has energized the Republican base more than President Obama. He has been the most radical and divisive president that I have ever seen. There are voters on both sides that have voted in 2008 & 2012 that have never voted before. Most of these voters punch straight ticket. When you look at the demographics of our county, we should have expected strong wins recently. I expect the sheriff race between Wedding & Byram to be a tight contest with Kirk winning narrowly. We’re talking about a position that has been Democrat for years and a Democrat candidate with a highly recognized name. We need to be more active with getting our message out to the voters. Democrats have the media. Democrats have Hollywood. It will take a surge of activity on the local scene to facilitate our success in reaching the people. Maybe even a good social media campaign. There is no way that a President with Obama’s record should have been reelected, yet he was. That proves that all Republicans need to work harder regardless of the results in your precinct, county, district, or state.

    • The $37.5 million (plus interest of ?) is just the up-front juice. The rest of the story is the annual room occupancy guaranty, and the loss of property tax revenue- the part the hotel TIF would capture for their own use.

      I believe that your definition of ideologue is anyone you can not persuade to come over to your way of thinking.

      Go ahead and do your project. Just get your hands out of the taxpayer’s pocket while you are doing it. Are there ANY businessmen left in this town, or have they all signed up for the public dole?

      * * * * * * * * * * * * * * * * * * * * * *

      GOP.COM

      Our Party

      Economy

      We believe in the power and opportunity of America’s free-market economy. We believe in the importance of sensible business regulations that promote confidence in our economy among consumers, entrepreneurs and businesses alike. We oppose interventionist policies that put the federal government in control of industry and allow it to pick winners and losers in the marketplace.

      * * * * * * *

      Evidently hollow words that mean nothing!

      _

      ___

      • This is not interventionist and does not pick winners or lovers. It creates a winning environment for all. The most knowledgeable person on hotels in Evansville is John Dunn and he has acknowledged that it will take help from our local government and it will help all of the hotels. There is no occupancy guarantee. You’re thinking of Owensboro. What I define as an ideologue is a person whose thought process is so rigid and narrow that they will not concede even for the greater good of society.

        • Government in this instance is, by definition, acting in an interventionist way. The core philosophy behind this scheme is one of taking from one area of the economy and “investing” in another using the force of government mandate. While the term “interventionist” or “economic interventionism” is more closely associated with countries or states rather than municipalities, it is the same thing. http://en.wikipedia.org/wiki/Economic_interventionism

          This is the same kind of central economic planning in which our Federal Government partakes when they choose to print money via a Federal Reserve – thereby penalizing all people who hold US dollars – to bail out a few select institutions they deem “too big to fail”. This is absolutely no different philosophically than what Evansville is doing by taking money first gotten through taxation, both of competing and non-competing businesses as well as future debt obligations in the form of bonds, and giving to another private business. The mechanism is slightly different in that Evansville cannot print it’s own currency to pay the bills, but the fundamental justification and thought process is the same.

          This is all Econ-101 stuff.

    • Swerdling & Associates

      Our experienced professionals have set the standard in underwriting hotel transactions involved in public-private partnerships. Our extensive knowledge of the hospitality market coupled with our established relationships within the investment community distinctively qualifies our firm to analyze, structure, and market the strengths of any hospitality project to the credit and capital markets.

      Swerdling & Associates efforts are driven by our clients financing requirements. In meeting these requirements we are fully capable of suggesting and evaluating financing solutions under the best possible terms.

      __

      • In other words: We, Swerdling & Associates, will tell you how much juice you have to come up with in order for the project to fly.

        __

      • This was quoted at the end of a New York Times article, Nashville Gambles On Lure Of New Convention Center (Nov. 20, 2012):

        Councilwoman Emily Evans said the Music City Center encapsulated the political difference between Nashville’s current mayor and its former mayor, Bill Purcell. While both aspired to put Nashville on the map as one of the South’s most popular urban destinations — a desirable “new Southern” town that would entice new dwellers and visitors, each had a different answer.

        “The previous mayor believed that it was residents that drove economies, not buildings,” Ms. Evans said. “The current mayor believes that attracting tourists, attracting visitors is the key to making the city grow,” she said, adding: “It’s hard to believe that the convention center will create a particularly hospitable environment for living.”

        * * * * * * * * * * * * * * * *

        While this might work for a tourist destination like Nashville it will not work for a city like Evansville, which has no attractions of sufficient interest to pull people to this city. Former attractions have been allowed to slowly wither on the vine.

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