Mayton Inn – Your Tax Dollars at Work Jul28

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Mayton Inn – Your Tax Dollars at Work

 How does a couple in Durham get $6.8 million of Cary taxpayer money for their boutique hotel?

The downtown Mayton Inn will cost $9.8 million to build. Deanna and Colin Crossman2Most of us cannot even afford the $300/night to enjoy a room there, yet the Town Council forces us to spend nearly $7 million of our hard earned money to build it.

Established Downtown businesses, some there for decades, will never see a dime from the Town, let alone millions. Other businesses have already been forced out of Downtown under the threat of eminent domain.

 

Eat Your Heart Out MetLife

This Durham couple walked away from Cary Town Council negotiations with a package worth nearly $7 million, and, no obligations or conditions attached to the money. They put no cash or equity of their own in, and will employee only 5 or 6 low wage employees.

With average room rates of $85/night as the the Triangle hotel market stagnates in 2012. If not for millions in corporate welfare, this $300/night hotel would not even have a business case.

Compare to the Crossmans’ $6.8 million package to the highly publicized dealmetlife1 the Town negotiated with MetLife in the same time frame.  MetLife only gets about $1.9 million and in return will spend $85 million of their own cash to build their own facility, and will bring in 250 jobs with $90,000+ salaries.

Any wonder why the Town has kept the Mayton Inn deal under wraps?

 

“Cary and Wake County each could pay MetLife about $1.9 million in cash incentives, according to staff projections. In exchange, the company could put more than $85 million into a Cary campus by 2017.

MetLife won’t get cash until it puts at least $50 million into its local campus, which may happen by 2016. The company also must hire at least 250 people in Cary at salaries exceeding $90,000.

 

Here are highlights of what the Crossmans get from the citizens of Cary:

    • 1.04 acres of prime downtown real estate, heavily subsidized. The Town of Cary used $1.8 million  of your money to buy the land the hotel will sit on . The Town turned around and sold it to the Crossmans for only $950K – half of what we paid for it.  We then  generously provide  financing for the 50% discounted price with  low-interest 15 year term – no down payment, collateral or equity required.

 

    • The Crossmans were given two historic houses: the old Mayton house for them to use as their personal residence, and the Rood house for them to use  as a rental cottage. The Town Council has also graciously offered your money to move these houses to the building site.

 

    • The Town will provide:  $325,000 for pre-development: $ 80,000 for demolition of existing buildings.  $45,000 for grading.  $ 50,000 for relocation of the Mayton and Rood houses.  -$150,000 for streetscaping and landscaping.

 

    • Town has obligated taxpayers to underwrite a 1.4 million dollar loan for the Crossmans from the Department of Housing at Urban Development’s low income housing and urban renewal program.

 

    • The Town is waiving $615,000  in development fees and $615,000 in General Contractor fees.

Town of Cary taxpayers are on the hook for over 6 million dollars, principally taken out of  our General Operating Fund for an only remotely viable project that will employ a half dozen or so,  but claims to create 40 jobs. At best this is abuse of laws governing the use of public monies for private development at a time when the Town has announced hikes in taxes and fees and cutbacks in services and capital projects due to shortfalls in revenue.

Remember, we were first told the Downtown Theater would cost us $1M to restore? It is now costing us $6 million and rising. The same bait and switch looms to the Mayton Inn. And it gets worse...there are other significant costs that still not been disclosed to taxpayers:

  • Sewer and water upgrades in what was a residential area.
  • Engineering to improve the water pressure.
  • Stormwater upgrades
  • Parking (the inn has no parking for their guests!)
  • Another 2.6 acres of land adjoining the hotel that is conveyed to the Corssmans in the contract.

This is a massive waste and abuse of our hard earned tax dollars. This project is yet another reason that  politicians and bureaucrats should stay out of free market enterprise.

High Tea and Crumpets

Private parties get millions of our tax money and are given our land. Land our taxes paid for. Land we were told would be a park. Instead. of the Downtown park we were promised,  we get an acre of storm water drain fields and holding ponds.

The well connected elites and  cronies get development contracts, boutique hotels, martini bars and high end condos nd we, the people who paid for it, all cannot even afford.

“The Inn will offer High Tea, as well as turndown service with port and chocolates. A gourmet hot breakfast will be served every morning in the full service restaurant. In addition, the Inn will offer complimentary wireless Internet, in-­room iPads, and 42” HDTVs”

Cary Citizen

Great. Our kids can play in the well manicured drainage ditches while the Mayton Inn guests look down upon us  in amusement during their afternoon tea.

OUTRAGED YET?

It is your money.  Sign the petition.

Ask for a sound plan.

Demand Accountability.

DOWNLOAD FLYER

[emailpetition id=”1″]

 

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