The Anaheim City Council has approved a tax subsidy for two, four-star hotels in the Resort District over the strong protests of residents who attended the meeting. The vote was the second time the council has approved the subsidy, but the last act was nullified by a judge’s ruling, saying the vote violated the Brown Act.
The 4-1 vote, with Mayor Tom Tait voting against the deal, allows the hotels’ developer to retain 70 percent of the room taxes from the hotels over the next 20 years – or $158 million. 20 percent of the tax will go to pay off the Resort District’s bonds, and the City’s general fund will receive the remaining 10 percent. The City estimates that the general fund will receive around $235 million between 2016 and 2042.
Mayor Tait disagreed with the City staff and the majority of the council, and cited his own estimations about fund earnings for the city. Comparing the years of the subsidy, Tait claimed that a three-star hotel built without the subsidy would earn the city $50 million, while the subsidized four-star hotel would only net $20 million.
Read the full article at the Voice of OC.