Convention Center Hotel Promoters are a Bunch of Get-Along Business Guys Who May Not Even Realize Their Own Deception

Does truth get more difficult the smarter you are?

On August 17, 1998, President Bill Clinton told a Washington grand jury, "It depends on what the meaning of the word 'is' is....[I]f 'is' means is and never has been, that is not—that is one thing. If it means there is none, that was a completely true statement."

He was trying to explain why he had allowed his attorney to tell a judge he hadn't had sex with a White House intern when he had.

On March 22, 2009, The Dallas Morning News quoted Dallas Mayor Tom Leppert as saying, "I asked then and I keep asking, 'Is there anything that at this point in time would keep us from crossing the goal line?' Their answer is no."

Leppert was trying to explain why he had told voters two years earlier that federal officials had "signed off" on safety issues in a major public works project when, in fact, they had not.

The Dallas May 9 referendum on a city-owned convention hotel, as Sam Merten explained in our cover story last week "Who Do You Trust?," has become a referendum on Mayor Leppert's honesty. Is he a truth-teller? Or a liar?

The mayor goes before audiences every day and vows the hotel project is all good: Construction costs will be within the half-billion-dollar estimate; the hotel will make its ambitious revenue numbers; the city will bask in black ink for decades with new revenue the hotel will bring Dallas in increased convention trade.

In ads and debates, however, opponents of the hotel point out that Leppert's word has been less than golden on similar issues in the past. This is the same man, after all, who vowed to voters before the 2007 referendum on the Trinity River Project that the U.S. Army Corps of Engineers had "signed off" on all of the important safety and engineering issues associated with building a high-speed, limited-access highway between levees along the Trinity River where flooding occurs on a biennial basis.

Leppert also told voters he had spoken personally with the North Texas Tollway Authority and was "very comfortable" that the NTTA would fund the entire cost of the road above and beyond the city's modest share.

Leppert also based his advertising campaign on a claim that changing the alignment of the toll road—moving it outside the levees—would "send a billion dollars down the river" in lost cost-sharing from other agencies.

All three of those claims turned out to be false. The Corps of Engineers had signed off on nothing. The NTTA had promised nothing. There was no billion dollars at stake.

Three major untruths, three explicit declarative promises made to voters in exchange for their votes, all false.

But in a column by business writer Cheryl Hall in last week's Morning News, Dallas oil and real estate tycoon Ray Hunt voiced anger at the anti-hotel forces who have questioned Leppert's honesty.

"This is an attack against the office of mayor," Hunt told Hall. "The mayor is being punished because he disagrees with the opposition on a legitimate civic issue. That's unacceptable."

The subtext in Hall's column was that almost all of the city's business and social leaders, with very few exceptions, support the hotel and support Leppert. The suggestion—identical to the claim made during the Trinity River toll road campaign two years ago—is that not everybody in business and social leadership in the city can be a liar. Not everybody!

It's a powerful argument, with an equally devastating obverse. In order to believe that everybody in leadership is a liar, wouldn't you have to be a tinfoil-hat-wearing, self-mumbling paranoiac? Isn't it sort of crazy to imagine that it's all one vast conspiracy?

That's why I was so fascinated by an academic article recommended to me last week by community activist and political consultant Lorlee Bartos. Called "Delusion and Deception in Large Infrastructure Projects" in the winter edition of California Management Review, it's a study explaining exactly how and why everybody involved in a big project can be a fool, a liar or both. And to explain it you don't have to invoke anything tantamount to a real conspiracy.

It's more like human nature.

The study's three authors, business professors at the University of Oxford, University of Sydney and the University of Western Australia, start out with three global truths that seem to apply equally to all cultures all over the world. 1) Most people love their mothers. 2) Almost all people are afraid of large predators. 3) "...across the globe, large infrastructure projects almost invariably arrive late, over-budget and fail to perform up to expectations."

The authors cite three flamboyantly disastrous examples. One was a German project in 2003 called Toll Collect that wound up losing so much money in toll road collections—a quarter of a billion dollars a month—that Germany had to put its entire national highway program in mothballs until the Toll Collect project was fixed.

The second was the Eurotunnel or "Chunnel" under the English Channel, a project so wildly over cost and under its revenue projections that economists have decided the entire economy of Europe would be better off today had the Chunnel never been built.

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  • Gordon 05/10/2009 8:27:00 PM

    Hey Leppert, now that your on a roll with your second agenda win at the polls "uniting" the citizens of Dallas, why don't you now push for something that will actually make money for Dallas... a city owned, convention center casino. Take that big parking lot south of the railroad tracks and put in there. Maybe you might could get 50% occupancy in the new hotel. And if you're really feeling your oats Mayor...then get the taxpayers to build a city owned, convention center gentlemans club. Now were talking millions of jobs, billions, no trillions of dollars in revenue....

  • Jesse 05/10/2009 2:14:00 PM

    You have a way of nailing things Jim. Now that the vote is over and the deluded side has won , I am taking a couple of things away from the experience. First , the vote was really close . 2000 short. This means that those in the city who are paying attention are pretty much split down Broadway. But what I find intersting is that nature of the split and what the true issue became is this....a referendum on the mayor's character . This vote was closer than the other deceptive ballot , that on the super toll road in the middle of a flood plain. To me it says that Leppert and his huge collection of civic dupes are losing ground. It means that responsible people may be on the verge of getting this city back one day. Jury's out on that one. We can all hope. Thanks Jim for honest perspective. BTW...I hate conspiracy theories , all due respect:)

  • Dallasite 05/08/2009 9:18:00 PM

    "he went out and risked his own money to build a big hotel with attached convention facilities." No, the Crow family cut a sucker deal with the TX Teachers Retirement Fund to expand his hotel. Hotels are just bricks and bedrooms. The convention industry is not a growth industry. Jerry Jones got the Texas Legislature to pass a law which made the stadium deal with counties, not cities. Dallas County fumbled the deal, not a mayor. However, there are what, 8 NFL season games? Mostly, the stadium will sit idle. I don't care that the "Dallas" cowboys play in Arlington, big deal.

  • GREGGsTRAVEL 05/08/2009 7:59:00 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!!!

  • 05/08/2009 4:29:00 PM

    I'm willing to bet that Harlan Crow pays at least 100 times more taxes than the average blogger railing against him. I understand his motivations-- he went out and risked his own money to build a big hotel with attached convention facilities. Now, he faces the City of Dallas, who wants to take taxpayer money to build a directly competitive property enjoying the following benefits: 1) lower cost, tax-exempt debt guaranteed by the City of Dallas; 2) exemption from property taxes; and 3) full recapture of all hotel occupancy taxes paid. Collectively, the give the new hotel a huge competitive advantage over existing properties--- yet, even with those advantages, it appears highly doubtful that the hotel would be able to service the debt. Taxpayers are left holding the bag in two ways: 1) having to pay out of pocket to cover the debt service shortfall on the new convention center hotel; and 2) facing the prospect of severely reduced sales taxes and property taxes paid by the damaged Anatole Hotel (and other competing properties that will suffer).

  • Rollingstonetx 05/07/2009 10:53:00 PM

    If a convention center hotel would make any money, then the private hotel companies would be battleing each other to build one. I'm not against giving them some incentives if necessary to get it off the ground but that should be the extent of govt. involvement.

  • chevytexas 05/07/2009 10:46:00 PM

    OMG, lie down and die already with the Laura Miller-screwed-us, since you're mentioning Mr. Business Ron Kirk as well. You remind me of my sister-in-law with that cumulative rage. Uncle Bob Thornton and the Stemmons family could've been described exactly the same way. The point I liked about Jim's column this week was, yes, you'd hope it is a conspiracy just so you could find a villain. I think we're more afraid they're just fools. Now, what about that Calatrava doorstep?

  • Woodman 05/07/2009 9:57:00 PM

    The facts on the performance of hq hotels, and their impact on the adjacent convention center, are out there and readily available. The facts on the state of the national convention and tradeshow industry are equally readily available. The formal "studies" backing the hotel, from HVS and the city staff, are riddled with errors and mistakes. Look for yourself.

  • afa 05/07/2009 7:26:00 PM

    But isn't Harlan a little suspect too since he doesn't want to lose patrons at the Anatole Hotel he owns? Seems like everyone is on one side or the other for THEMSELVES and using the "taxpayer" as a shield. I feel so used.

  • Mayor Miller Sux 05/07/2009 6:33:00 PM

    It's interesting that the media doesn't mention that Laura Miller was the actual mayor who spearheaded this convention center hotel. It was asinine back then, and no one said a word. Now the heat is on Tom Leppert because it's finally coming to fruition. Miller should be sharing that heat with him. How come people aren't crapping on Miller, since she started the whole mess? She's OK with building convention center hotels, but against building the Cowboys Stadium, something that would actually make us money. She's the shittiest mayor ever. Where's the outrage, people???

  • Ann 05/07/2009 5:27:00 PM

    *This is to the comment above me.* Wow, thanks for the comment, Mayor Leppard, obviously you have a problem understanding what you read. I suggest you re-read the article and then delete your above comment. Why is this whole hotel project starting to remind me of Mayor Kirk and the new arena (AA Center) project of the 90s? Kirk had his head so far up the rich guys butts then and Leppard is doing the same thing now.

  • Setting The Record Straight 05/07/2009 3:25:00 AM

    The projects mentioned by Hall are not relevant in size, type, value, timeline or even in the United States!! Please toss these facts into the trash. If this is true though, and the Vote No side are all in a conspiracy waiting to cash in and this is what these campaigns are about, then who is Harlan in a conspiracy with? And honestly why is he sooooooo concerned with the Dallas taxpayers and he is not even one himself. I wonder if Harlan would still be against the hotel if it were a public-private partnership? Guess we will never know, since all he is talking with in his check book.

 

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