Aug. 14–A funding plan for the proposed hotel at the Oregon Convention Center on Thursday goes before the Metro Council, the first — and likely the friendliest — of the three political bodies that have to sign off.
The regional government’s elected council will vote on a term sheet that outlines the broad strokes of its deal with Minneapolis developer Mortenson Development and the company’s partners to build a publicly subsidized Hyatt Regency across the street from the convention center.
It will also consider amendments to an agreement with the city of Portland and Multnomah County that will allow it to redirect proceeds from a local hotel lodging tax toward the project. The Portland City Council and the Multnomah County Commissioners will be asked to give their OK next month.
The redirected lodging taxes will be used to pay off about $60 million in revenue bonds to be issued by Metro. That money would otherwise go toward other tourism promotion efforts.
Metro, which owns and operates the convention center, says the hotel is needed to attract out-of-town conventions and events, along with the dollars conventioneers will spend at local restaurants, shops and other hotels. It says the public subsidy — which also includes $10 million in state lottery funds and $4 million direct contributions from Metro and the Portland Development Commission — is needed to allow a hotel large enough to reserve a block of rooms for events.
A coalition of local hoteliers says the plan is risky and won’t attract new business to the city. And if the Hyatt doesn’t live up to its own projections, the lodging tax collected from other city hotels could end up paying down the convention center hotel revenue bond debt.
The members of the Portland City Council and the Multnomah County Commission have largely stayed quiet on the issue while a deal was being finalized. But at least one city commissioner said he’d like to further limit the public contribution, and a county spokesman said last month it was premature to say the county commissioners are on board.
The Metro Council meets at 2 p.m. on Thursday at the Metro Regional Center, 600 N.E. Grand Ave. in Portland.
— Elliot Njus
