The Convention Center Hotel Vote is Not Just About a Building. It’s About a Mayor.

Scenes from the battle: In his many public pitches for the convention center hotel, Mayor Leppert has argued that a vote against the hotel would be a vote against the future of Dallas.
Sam Merten
Scenes from the battle: In his many public pitches for the convention center hotel, Mayor Leppert has argued that a vote against the hotel would be a vote against the future of Dallas.
Sam Merten

It's another in a long line of sales pitches for Mayor Tom Leppert as he hawks his vision for a convention center hotel. Tonight the promoter-in-chief is going mano a mano against those who support a referendum for a city charter amendment that would put the kibosh on his proposed half-billion-dollar, taxpayer-funded venture. It's only a debate, a forum for civil discourse, but for both sides it's become damn personal. At stake is not only the future of the hotel but the political fortunes of the mayor who, nearing the midpoint of his term, has acquired a Teflon-like invincibility and seemed untouchable—at least until recently.

Marshaled against him this brisk March evening is Anne Raymond, the head of the hastily formed Citizens Against the Taxpayer-Owned Hotel. But there's no denying reality; she is merely the capable mouthpiece for the vested interests of the anti-hotel crowd. The real money behind their movement flows from Harlan Crow, her boss at Crow Holdings and the owner of the Hilton Anatole hotel, which stands to lose profits aplenty if a city-financed hotel opens its lavish doors downtown.

Leppert is not only a savvy dresser—baby blue French cuff shirt, multicolored tie and gold watch—but also a savvy speaker. He lashes out against Crow without naming him, as if he's just some faceless corporate profiteer who wants to deny the city its economic potential rather than the familiar son of one of its beloved real estate titans—Trammell Crow—for whom Leppert himself once worked.

The mayor mentions this "individual" several times throughout the evening, wagging his index finger each time. This person has poured millions into the campaign, he says, and his family has been fighting the hotel for 25 years to protect its financial interest.

"You have one person that is the opposition," Leppert says. "Anne works for that individual."

Raymond counters by saying she is more than Crow Holdings, touting her 25 years in the hotel investment business and her selection by two mayors—Leppert and Laura Miller—as a member of the convention center hotel task force. "As I've watched this unfold—watching the government try to compete in the private hotel business—they've made horrendous errors already," she says.

Two of the city's bigger gaffes, Raymond says, include buying the hotel's site for $42 million when it was on the tax rolls for approximately $7 million and striking a hotel management contract with Omni Hotels that's "totally favorable" to Omni. As Leppert watches, legs crossed, Raymond argues that the reason the private sector hasn't built the hotel is because it's destined to lose money. "But the city wants to get it done, and the taxpayers are left with losing money."

Leppert explains to these West Dallas residents why there are sound business reasons to support the hotel: Dallas has slipped out of the Top Five convention cities, and it needs a hotel adjacent to its billion-dollar convention center to get back in the game. And a hotel would stem the money hemmorhaging from the convention center—$3 million a year.

"That comes right out of your wallets, my friends, because that comes out of the general fund," says Leppert while holding up his black leather wallet—effectively providing the audience with a visual cue they can understand. "And that number's not going to go down. Keep in mind, that's your tax money...It's not unreasonable to believe over the next 30 years, it's going to be more than $150 million in taxpayers' money if we don't do something."

Leppert's on a roll, pacing back and forth, his steely blue eyes engaging the audience, his long arms waving to make his point: a hotel won't just save the convention center, it will increase tax receipts, prevent city services from being cut, create 3,000 temporary jobs and 800 permanent jobs. Kill the hotel, and Leppert makes it sound as if Dallas is doomed. "This is not about a building," he says. "This is about our economy and looking to the future."

At least one audience member isn't buying it; he calls the hotel a "boondoggle" and says, "Let us vote," referring to Leppert's attempt to nullify the referendum by funding the project before voters have their say.

The mayor offers no response.

Silence has been Leppert's tactic when confronted with difficult issues: He refused to speak with the Dallas Observer in April 2008 for a story about the hotel, claiming he wasn't ready to discuss the issue "until things have firmed up and we know which direction the city is heading." Again, the Observer requested comment for this story, but his chief of staff, Chris Heinbaugh, said, "Right now the mayor is focused on the two charter amendments, as well as issues in the Legislature and Congress."

Leppert also refused interview requests from The Dallas Morning News regarding his plans to take control of the Dallas Independent School District.

While he might not have much to say to the press, he's running a tireless public campaign to ensure the convention center hotel is approved, which will take a no vote on Proposition 1. Additionally, he's encouraging voters to also say no to Proposition 2, which would allow the public to vote on economic incentives of more than $1 million that the city gives to private developers, if 500 citizens sign a petition.

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  • frank 05/15/2009 7:21:00 PM

    This one is genius. The Tom Leppert bathroom tile. http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=350202442775

  • daniel mcmurry 05/10/2009 1:23:00 AM

    I was wondering if anyone has noticed how much Tom Leppert looks like the Tin Woodman of the Wizard of OZ? He is wanting a brain..... (I would attach some Google Images but I'm not that adept)

  • GreggsTravel 05/08/2009 7:58:00 PM

    This truly is about a hotelier, Harlan Crow-owner of the Anatole, wanting to banish the option of ever building a convention center hotel! VOTE NO AGAISNT CROW!!!

  • garyb 05/07/2009 6:42:00 PM

    When you get the government involved either on the federal,state or even the city level it is not good for the taxpayer. Do you notice that we can't afford to build anything unless we finance it. There is not any up side for the tax payers to be paying for this. If you believe that you will benefit from the City of Dallas being in control of this hotel take a look around. We cant even keep our roads in good condition, we sure can't run our schools. How many superintendents has dallas had that has contunually put our schools main purpose of education on the list somewhere other than at the top. They have had furniture buying crooks, they have had test scores at the lowest levels, they have had an accounting nightmares where they didnt even know where the money was spent on credit cards and didnt have any reciepts. This in turn has caused the DISD to have to fire a very high number of teachers. They then turn around and hire some more teachers. Dallas is in the position it is in because of its inability to manage the very basic structure of a city. The change will not come by having the taxpayers bailing out an ineffective government and it never will. There are basic principals in life that will not change and they never will. You must have a vested intrest and be involved and work hard for things you want. If this was such a good ideal and it was profitable there would be a private company wanting to invest in this and build it themselves. If Dallas voters vote for this I believe they will look back and have regrets and wish they had voted differently. Think about this and ask yourself if you had the money to loan the City of Dallas the money for this project and you would only be paid back if the hotel was profitable and it would be ran by the city, would you really loan them the money for this. Dallas does not have a policy that is about making an enviroment that is fertile for business to invest grow and prosper, if it did we wouldn't be having this conversation. I hope people vote on principal, however they way people are educated and taught how to think I dont have much hope. Think about it if you must but this is something that should take all of about 2 seconds to decide if you base it on principals.

  • qdhimmi 05/06/2009 5:41:00 AM

    Here is how every "public/private partnership" has worked time and again over the past 30 years worldwide: 1. Get $100-200 million plus in below market, tax subsidized funding irregardless if the tax payers support your project or not. 2. Build some white elephant edifice with 20%+ profit engineered into the project via various unethical/quasi-legal means. 3. The principals both private and public take their profits and retire to Palm Springs, Maui, Taos or some other rich man's paradise. 4. Let local tax payers pay higher taxes for the white elephant. This is what Leppart and his cronies have in mind with every capitol project they envision. Let the people of Dallas not say they have not been warned.

  • MatthewJ 05/05/2009 11:23:00 PM

    I, for one, have no problem agreeing with the mayor on this one. But even if you don't all you have to do is look at the hundreds of respected and successful business leaders who have evaluated this issue and have registered their support for Vote NO. To address some points above: $500 million can not be spent on anything else. These are not local tax dollars that we can debate on their best use. They are proceeds from revenue bond sales that have one use . . . a hotel. List of supporting hotels is on the Vote NO Dallas website. Brookings Institute report has been discredited. City study did not say the convention center makes more money without a hotel. It said that even using worst case projections with the hotel, it is a good idea to refinance the CC debt. It's clear that all the experts agree that the hotel is a good idea and this is the right way to do it. The only people who disagree are those being paid by a billionaire out to protect his own interest. $5 million and counting! Are you kidding me? That's six years worth of convention business incentives! I guess we find out Saturday if you can buy an election. If you think Dallas is a great city and want to keep it that way, Vote NO and build the hotel.

  • Nancy 05/04/2009 9:55:00 PM

    Would somebody tell Sam Merten to please run a correction ... In his Leppert cover story, Sam writes: "...he's running a tireless public campaign to 'ensure the convention center hotel is approved, which will take a no vote on Proposition 1.'" Sam, voters on May 9 will have NO option on any ballot to "ensure the convention center hotel is approved." There is not a proposition on the ballot that says "ensure the convention center hotel is approved." Even if the Proposition 1 amendment to the city charter (to prohibit city-ownership of a hotel or lodging facility) fails to pass, there is NO ensuring that the convention center hotel is approved. It is entirely in the realm of possibilities that Dallas residents will tell their council representatives: "Do not issue $550,000,000.00 in revenue bonds." The bonds have not been issued. The hotel has not been financed. Much like the Trinity River Parkway has yet to be financed. Dallas voters should vote Yes on Proposition 1 if they want to "prohibit city-ownership" of a convention center hotel. Dallas voters should already be contacting their city council representatives (including Tom Leppert) to tell them to NOT issue $550,000,000.00 in revenue bonds. Dallas voters should contact their city council representatives - regardless of the outcome of Proposition 1 on May 9 - to tell the city council to "find another way to get a convention center hotel built." There are many other ways to do so, whether Prop. 1 passes or not.

  • Mike 05/01/2009 11:36:00 PM

    Like the mayor said this hotel will supply jobs for the community and will attract many tourist here in Dallas. It will supply money to families and home owners in Dallas as well. This hotel is a great idea and will help the community of Dallas in many ways. This hotel will not loose money but rather gain money and also the person supporting the vote against this hotel is in California not here in Dallas so why would he even care about Dallas!? The California investor does not know the details but Mr. Tom Leppert does so please VOTE NO and help to support the Dallas community by gaining jobs!

  • RIP Dallas 05/01/2009 8:43:00 PM

    I must reiterate... Funding for shools is entirely different than the funding for the hotel. A hotel (like an airport, a stadium, or the convention center itself) PRODUCES INCOME. Because of that, bond investors that buy the bonds can be paid back with hotel revenues. School and public safety funding is critical to our city, but since they are not income producing, they are paid out of the general fund, and cannot be financed using REVENUE BONDS. I choose safe streets over hotel suites. But wait... a greater tax base, development of downtown, and greater tourist numbers mean we have more money to spend on safer streets... so in this case, hotel suites mean safer streets. Stop hating. Join the love. Rejoice in Dallas becoming the city it's destined to be... and most importantly... do your homework. Grim is watching. VOTE NO to props 1 and 2.

  • Michael123 05/01/2009 1:54:00 PM

    What a joke, If "Enough is Enough" is really interested in better schools (DISD) their chant should be to demand immediate resignation of all those DISD trustees that voted to deny DISD taxpayers their May, 2009 school trustee elections. Bet you a dime a majority of these "Enough is Enough" corporate welfare crybabies send their kids to private schools. Ever wonder why the white student population at the DISD has never reached higher than 8% of the total DISD student population for the past decade? It's not because the DISD has better schools. Maybe that is what these "Enough is Enough" Dallas Elite Corporate Crybabies should be working on instead of trying to act out their roles of individuals standing on street corners with their corporate welfare hands out grabbing Dallas' common taxpayer revenue to pay for a hotel that should be built by the private sector. Vote YES!, May 9th, against the proposed taxpayer-funded Dallas Convention Center Hotel.

  • Michael123 05/01/2009 4:26:00 AM

    Looks like the Sharky the Shark ate up those (Enough is Enough) crybabies. It appears Dallas Mayor Leppert, Roger the Shill Dodger and his contingent of Dallas Elite Corporate Welfare Stooges can't get their mud to stick on the wall. Chihuahua Fellas, looks like we hit a nerve here. Dallas' common taxpayers won't get hoodwinked May 9th. Vote YES Dallas! - May 9th, against the proposed Dallas Convention Center Hotel.

  • Raymond Garfield 05/01/2009 3:16:00 AM

    Sam, I have several observations about your article �It�s about a Mayor.� First you said that �marshaled against him (Leppert) � is Anne Raymond, the head of the hastily formed Citizens Against the Taxpayer-Owned Hotel.� Her opposition was anything other than hastily formed. Anne and Harlan Crow have been spending plenty of money for years fighting any attempt to help this hotel become a reality. Several years ago, before the first competition to build this hotel under Mayor Miller, Harlan with Anne boasted to me about how much money he was spending to stop the State of Texas from passing legislation to rebate a ten year share of �hotel occupancy tax� to cities in order to help finance convention center headquarters hotels. Crow�s efforts thankfully failed and Houston, Austin, Fort Worth and San Antonio have been aided by that rebate in financing their convention center hotels. Dallas now stands ready to use that same law to help us finance our needed hotel. You go on to say correctly that Harlan Crow is Anne�s boss at Crow Holdings and that he is the owner of the Hilton Anatole hotel, but you casually state that the hotel �stands to lose profits aplenty if a city-financed hotel opens its lavish doors downtown.� I believe the likelihood is that if Dallas builds the vital headquarters hotel and gets back in the convention business, dozens of hotels in proximity to the convention center will see their occupancy and rates climb from the new business created by a successful convention center. It is not a hollow argument to say that a rising tide raises all ships. Having a 1,000 room hotel connected to our convention center will be a magnet to recruit conventions bringing hundreds of thousands of conventioneers to Dallas, overflowing into other hotels eager for the business. The Hilton Anatole will be one of the beneficiaries. So why has Harlan been the leader of the opposition, indeed why has he been THE OPPOSITION? Heaven only knows, but I can just assume he�s been at the opposition so long that he just can�t let go. And if he and his Yes Vote succeed, he will have done more damage to Dallas and its future than his illustrious father ever did good. You also said that Anne Raymond touted her 25 years in the hotel investment business and her �selection by two mayors�Leppert and Laura Miller�as a member of the convention center hotel task force.� Considering that our city knew of Crow�s selfish opposition to Dallas getting a needed hotel for our convention center, one has to ask just how mistaken was our city in allowing Anne Raymond to serve on any task force charged with getting us back in the convention business. Anne was the proverbial �fox in the hen house� and a direct pipeline to Harlan and his lobbyists and PR firms crafting constant opposition tactics. And then you mention that Anne Raymond pointed out �two of the city's bigger gaffes�, one of which included �buying the hotel's site for $42 million�. But what she and you did not point out was that it was her boss and his family that, years ago, donated Pioneer Park, the land directly in front of our convention center which houses the �Cattle Drive� sculpture, a site that the Crow family �deed restricted� from ever housing a hotel. Harlan could have removed that restriction and kept Dallas from having to purchase another site for $42 million, indeed even $1.00! Harlan may not only cost us our future as a convention destination, but has already cost me and the rest of my fellow Dallas citizens and taxpayers $42 million� plus the several million our city has had to spend to fight his current opposition to our hotel. You go on to say that Anne Raymond argued �that the reason that the private sector hasn�t built the hotel is because it�s destined to lose money.� I can tell you that she is dead wrong...and knows it! Any hotel developer worth his or her salt knows that it costs more money to design and construct a convention center headquarters hotel because it demands more space than a traditional. It must have oversized ballrooms, extra kitchens, concierge floors, board rooms and extra meeting space to house events and business meetings which are part and parcel of every convention. Then the hotel is further burdened by having to �block rooms� for years in advance of conventions at advantageous rates in order to bring the conventions. It carries a different purpose and different burdens than a normal hotel. Therefore, no city in American has been able to achieve its goal of constructing a headquarters hotel for its convention center without public support in over 15 years. To name just some of the cities that have financially backed new hotels during the past fifteen years, they include Chicago, Denver, Los Angeles, Phoenix, San Diego, Boston, Houston, Austin, Fort Worth, San Antonio, Omaha, Sacramento, Indianapolis, Norfolk, Raleigh, Overland Park, KS, Lubbock, Erie, PA, Oklahoma City, and Minneapolis among many others developed and currently planned. So why would Harlan Crow and Anne Raymond keep saying that the city shouldn�t help build this one hotel in a generation that we must have to compete for tourism and economic development if the �private sector� won�t do it? Why indeed. It�s because they�ll do and say anything to �protect their investment� in a 30 year old hotel two miles from the convention center which cannot serve as a headquarters hotel for our convention center. Convention planners will not come to cites any more where their members have to ride in buses to get to and from the exhibition hall. And the irony is that the Hilton Anatole and our other hotels will perform at less than optimal levels unless conventions come back to Dallas. I say Crow�s actions are misguided at best and just terribly uninformed at worst. As an owner of a hotel near the convention center he is cutting off his nose to spite his face, and while he�s doing that, he�s potentially severely hurting our city by his efforts to shut off our access to the hundreds of thousands of new visitors who will annually come and spend hundreds of dollars a day for two and three days at a time in our community. That money and the new tax dollars generated are the life blood of a community and would serve to keep Dallas from continually raising taxes on our homes, our cars, and our shopping. I say Vote No so that conventions will stop saying no to Dallas. ----

  • church lady 05/01/2009 2:52:00 AM

    You can not lead people that you do not love. Does the mayor, Mr. Leppert love Dallas and the citizens? As the highest elected official in Dallas -he has not publicly addressed the Swine Flu events we need reassurance from our top leader -he has not publicly addressed the looming $100 million dollar budget deficit -he has not publicly addressed the already implemented cuts in city services- You can not lead people that you do not love!

  • Deep Ellum 05/01/2009 1:22:00 AM

    The Brookings Institution Space Available: The Realities of Convention Centers as Economic Development Strategy Cities, Community Development An examination of the convention business and city and state spending on host venues finds that: The overall convention marketplace is declining in a manner that suggests that a recovery or turnaround is unlikely to yield much increased business for any given community, contrary to repeated industry projections. Moreover this decline began prior to the disruptions of 9-11 and is exacerbated by advances in communications technology. Currently, overall attendance at the 200 largest tradeshow events languishes at 1993 levels. Nonetheless, localities, sometimes with state assistance, have continued a type of arms race with competing cities to host these events, investing massive amounts of capital in new convention center construction and expansion of existing facilities. Over the past decade alone, public capital spending on convention centers has doubled to $2.4 billion annually, increasing convention space by over 50 percent since 1990. Nationwide, 44 new or expanded convention centers are now in planning or construction. Faced with increased competition, many cities spend more money on additional convention amenities, like publicly-financed hotels to serve as convention "headquarters." Another competitive response has been to offer deep discounts to tradeshow groups. Despite dedicated taxes to pay off the public bonds issued to build convention centers, many�including Washington, D.C and St. Louis�operate at a loss. This analysis should give local leaders pause as they consider calls for ever more public investment into the convention business, while weighing simultaneously where else scarce public funds could be spent to boost the urban economy. http://www.brookings.edu/reports/2005/01cities_sanders.aspx

  • Mike 04/30/2009 5:46:00 PM

    The mayor of Dallas very rarely actually runs Dallas. Rather, they serve as a talking head for those who REALLY run Dallas: Business special interests. I don't really have a problem with that, as long their pet projects are NOT on the tax-payers dime... and you'd think such a heavily conservative-influenced city would agree.

  • Suburban Idiot 04/30/2009 9:00:00 AM

    So, on the one hand, the hotel supporters keep saying that the hotel won't use any taxpayer money. And then on the other hand, they keep saying that if no hotel is built, the convention center will continue to lose money, which is taxpayer money from the general fund. But the convention center bonds are revenue bonds. And the hotel will be built with revenue bonds. So, either we shouldn't be paying the convention center losses with taxpayer money OR any losses that the hotel experiences will be made up with taxpayer funds. So our choice is that the city is so incompetent that they're paying money they shouldn't OR, more likely, hotel supporters are leaving out an important caveat when they make the "no taxpayer money" claim and should, instead, be saying "as long as the hotel always at least breaks even (which, according to the city's own numbers, will be difficult to do), no taxpayer money will be used.

  • Diane Noble 04/30/2009 5:42:00 AM

    I can't even imagine the wonders we could accomplish in this city with half a billion dollars. How many community centers equiped with tutors, teachers, and computers that will change the future of DISD students and thier parents? Maybe we could fund the homeless shelter so that it is open and safe at night. Maybe even provide some clinic options in the city. Promote the arts District and Farmers' Market areas. But I digress, I wonder if anyone has a list of the 20 hotel owners that support the Convention Center Hotel? I'd be interested to see that and hear what they have to say.

 

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