The news hit Cleveland like a gut-punch thrown by someone who watches a lot of Vin Diesel movies.
The Downtown Hilton was in trouble.
Due to a collapse in travel from the coronavirus, Hilton Worldwide was unable to make $7.9 million in debt and property tax payments on the iconic hotel. Were it to be saved, taxpayers would need to cover the tab.
It was a stark fall for a project that began with so much promise. In 2016, having already mastered the art of governance, Cuyahoga County deciding to bring its legendary management skills to the hospitality industry, opening the 600-room edifice.
The idea was to have it ready in time for the Republican National Convention, so that a majority-black city could host the nation’s largest gathering of lawn jockey collectors. Paired with the Huntington Convention Center and Global Center for Health Innovation, Cleveland would soon be catapulted to the heights of U.S. business travel.
That dream became true last year, when the city finally broke into the 50 Best Meeting Destinations list, trailing only such luminaries as Columbus and Grapevine, Texas to grab the 50th spot.
The Hilton wasn’t just a home away from home for the International Order of Shampoo Salesmen. It would also become the meeting place for Cleveland itself, where young lovers exchanged yearning glances over $18 old-fashioneds.
The deal was brilliant in its simplicity. Cuyahoga County would pay $276 million for the building. But it would be run by Hilton, which would reap all the rewards, with none of the risks. It was a win-win for everyone.
That’s no more evident than now, as the coronavirus batters the hotel industry. Hilton claims it can’t afford its $7.9 million payment. It offers no proof, since its occupancy rate is propriety information, as it should be. If North Korean intelligence services were to access sensitive Midwestern lodging information, who knows how the balance of global power might shift.
Besides, astute negotiators always take a corporation’s word at face value. The numbers bear this out. Last year, Hilton generated a meager $9.5 billion in revenue. To pay its Cleveland bill would mean tapping into .0008 percent of those revenues, clearly a sacrifice too great.
CEO Christopher J. Nassetta could also pay the bill himself. He made $21.3 million last year. But this would violate the first law of CEOing: That personal responsibility is always best left to someone else.
This leaves Cuyahoga taxpayers on the hook for yet another corporate welfare tab, one that could balloon to $20 million by the end of the year. Yet it’s only fair that residents be asked to subsidize one of the world’s great hoteliers. Yes, we too have been pounded by Covid. But our trifling struggles with luxuries like rent and medicine pale in comparison to the trauma being experienced at Hilton.
Sometime later this year, executives will fly to Maui for their annual retreat. There’s a very real chance they’ll run out of oysters at the Thursday night happy hour. Bob, the VP of Wallpaper & Sconces, will have to settle for smoked salmon rillettes.
If our sacrifice amounts to nothing more than keeping the crestfallen look from Bob’s face, it will be well worth it. For we are not monsters.
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This article appears in Jun 17-23, 2020.
That entire project was a corrupt joke, from start to finish.
The disgusting legacy? Blocking lake views with the stupid hill.
Let it fail, and plow it under.
Pete will now instruct his fellow antifa losers to loot and burn it down too.
You get any visits from the FBI yet you fraile old bitch?
No wonder why people keep moving out of Cuyahoga County (and the area in general). This county/city keeps making the same mistakes over and over.
The failed Med Mart/Hilton Hotel Project is a big political boondoggle that local Democrats fought for and got for their corporate campaign contributors.
Yet, local Democratic politicians, who supported the failed Med Mart/Hilton Hotel Boondoogle won’t be held accountable at the ballot box, which is why they continue to work for the best interests of their corporate campaign contributors, instead of for the best interests of local taxpayers.
“But this would violate the first law of CEOing: That personal responsibility is always best left to someone else. “
Yes he should shoulder all the losses in his company because of a global pandemic.
Dumb.
Why doesn’t Cuyahoga County Government just lend the money to Hilton Corporation with interest?
Deferred property taxes can also be paid back by Hilton Corporation with interest.
And yet again, the taxpayers get left holding the bag!!!
It’s time to recall Taxin Jackson, and cohort thief Budish out of office now!!!
Until our local political crooks are finally forced out of office, nothing will likely ever change around here except paying more and more taxes in this corruption-filled, dump of a city and county!!!
The true Welfare Queens r White Corporate Amerikkk………..
Hilton Worldwide has an stock market capitalization of $21 Billion Dollars
.Last year, the company bought back 16.9 million shares totaling $1.5 billion.
Since the company launched its stock repurchase program in March 2017,
it has repurchased roughly 55.5 million shares for $4.3 billion
This is the fu#ck shxxt White Folks due…………
This year, the board authorized the buyback of another $2 billion in share……………….
Let Hilton file for bankruptcy and flood the market with surplus mattresses…………..
Black Power, are you planning to not vote for Democrats on Election Day?
After all, it was Democratic politicians, who are responsible for the Med Mart/Hilton Hotel Boondoggle.
What about MedMart? Tim Hagan, the darling of the Democrats rammed that boondoggle up the taxpayers azzes. He screwed the people far worse than Dimora or Russo, yet they were sent to prison while he slithered away to a quiet retirement.
Shiwaku Seven, why are even acknowledging the existence of that waste of sperm?
Ignore the little leg humper.
Memo to Shiwaku Seven
I will work to defeat Joe Biden for President………..
I will work to defeat all life long Demo-rats who live and eat off the backs of Black Folks failure.
I will work to expose all Poverty Pimps and Race Hustler poli-trickters……….
Black American vote 92-98% Democrat’s while the demo-rats pass laws that undermine Black Folks
such as DACA, LBGTQ, Mass Incarcerations’ the dumping of asylum seeking illegal immigrants in the Black Community………..
Chagrin Falls is 97% all white Sundown Town, Hudson is 93% all white… and Avon is 92% all white
Black Folks are the most loyal voting block in the Democratic party……………………
while Dan Brady and his wife Dona Brady make an Pig of themselves on Government employment
jobs…………
Btw: although we may disagree, I respect ur viewpoint I just believe that u are wrong and have been infected with racial bias by White Supremacist MAGA Nutts………….
,
So they doesn’t have to pay even they are not filing for bankruptcy? Will they pay back the $7.9 million if we bail them out? If not, can we open it for bid and sell it to Marriott or something?