Downtown hotels funding opposition to city’s plans
The Citizens for Taxpayers’ Rights is leading a petition drive to force a referendum on the City Council’s plan to build a city-owned hotel. Its backers say it is protecting tax payers, but supporters of building the downtown hotel say it is trying to squelch potential competition.
By Sarah McClellan
Photo Editor

A group trying to force a referendum on the City Council’s plan to build a $130 million hotel has spent $30,000 in money donated by downtown hotels, the group’s chairman said Thursday.

“The largest amount (of money) is coming from downtown hotels,” said Steve Hollern, a Fort Worth accountant who formed the Citizens for Taxpayers’ Rights. “The reason is they’ve got an economic interest.”

Supporters of building the proposed downtown hotel, which would have 600-rooms and is slated to be built to attract large conventions, say the drive is an attempt by other hotels to stifle potential competition.

The group, which includes TCU students, has to get signatures from 5 percent of Fort Worth’s registered voters, or about 14,500 people. It has until 2 1/2 weeks after the City Council approves the plans to get enough signatures, but Hollern said the group already has half of them.

Assistant city manager Charles Boswell said the Radisson Plaza is the primary backer for the opposition.

“(The Radisson) can make money without upgrading right now,” Boswell said. “They’re afraid a true first class convention center hotel that’s a stone’s throw away from them will force them to upgrade or sell the property to someone who’s willing to.”

Stan Kennedy, vice president of operations for the Radisson, did not return numerous phone calls.

Hollern defended the petition drive, saying it is wrong for the city to spend so much money without voter approval.

City Council “wants to not let the voters have a say,” Hollern said. “That’s just not right.”

Councilwoman Wendy Davis, who represents TCU’s district, said that is not the City Council’s intentions. She said the risk of interest rates increasing before a bond election can be put together is too high.

“Revenues (from the hotel) and the hotel, motel and bed taxes will pay the debt,” said Davis, who was one of seven councilmembers who voted to proceed with plans to build the hotel Oct. 8. “No money is coming out of Fort Worth taxpayer pockets. Tourism pays for itself.

“(The project is) basically opposed by a hotel that doesn’t want the competition.”

Davis said the hotel is needed to attract large conventions to the new convention center the city is currently building. The hotel would have more rooms than the 504-room Renaissance Worthington or the 517-room Radisson Plaza.

“We have several hotels that can’t provide huge amounts of rooms,” Davis said. “We are losing business to other cities.”

But Hollern said if the economy was right for a project like this, private investors would “be tripping over themselves” to fund it.

“I would love to see a big hotel downtown but the economics just aren’t there,” Hollern said. “The municipal government should not be competing with the private sector.”

Councilmen Chuck Silcox and Clyde Picht voted against the resolution, but could not be reached for comment.

Sarah McClellan