Buffalo's strategy of giving handouts to hotels questioned

For nearly 30 years, politicians have poured more than $65 million into downtown Buffalo hotels — an average of more than $50,000 per room. The strategy produced five hotels — and a lot of red ink.

Some of downtown’s largest hotel operators say the last thing they need is more competition, especially subsidized competitors.

One heavily subsidized hotel is under construction, and development agencies in the last month have approved two others that would involve significant tax breaks. The new projects would increase the inventory of downtown hotel rooms by 22 percent.

“The industry as a whole is not doing well, certainly not when everyone is looking for government handouts.”

At play is a disconnect between those in the trenches of the hospitality industry and the politicians dangling the subsidies, along with the developers who would benefit from them.

“Buffalo does not need another hotel in this market,” said Paul L. Snyder, owner of the Hyatt Regency Buffalo.

Richard Geiger, president of the Buffalo Niagara Convention & Visitors Bureau, said that more rooms would not help bolster the convention and tourism business.

“Based on current market demand, we have a sufficient number of rooms in the downtown core,” he said.

David Hart, downtown’s longest-tenured hotel operator, said it’s time the industry stood on its own two feet.

“Isn’t it time for the subsidies to stop?” said Hart, who operates the Holiday Inn on Delaware Avenue. “Should we be subsidizing a market that hasn’t seen real growth?”

Said Hart: “If the market is really there, you don’t need public assistance. And if it’s not there, don’t build.

“All you do is hurt the hotels already in the market, and that’s what’s been happening for 20 years.”

This is exactly why we filed a Lawsuit against Albany to stop this.

Mother of All Taxpayer Lawsuits
Three Men in a Courtroom
December 3rd Albany

Buffalo, New York, November 24, 2008. Many people talk about doing something to cut taxes in New York. Fifty brave New Yorkers actually did something about it. They hired a lawyer and sued the entire political establishment in the state—the governor, the comptroller and the state legislature—to end corporate welfare. Bordeleau v. State of New York, Albany Co. Index No. 6582-08. Each year, the state hands out over a billion dollars of your tax money to wealthy corporations for “economic development.” Not only has this failed to help the economy but it is illegal under the plain language of the State Constitution:

“The money of the state shall not be given or loaned to or in aid of any private corporation or association, or private undertaking.” Article VII, § 8. 1.

The defendants retained hired five large law firms to oppose them and they argued that the constitution doesn’t mean what it says.

On December 3rd, in Albany, Hon. Michael C. Lynch will hear argument on the defendants’ motions to dismiss. Ostrowski and several plaintiffs will lead a Tax Revolt Convoy from Buffalo at 6:00 a.m. (Exit 49, Park & Ride, Transit Rd., Depew). A people’s rally in support of the lawsuit will be held on the Capitol steps at noon. Oral argument of the case is at 1:30 p.m. across the street at 16 Eagle St.

The success of this lawsuit could save the taxpayers tens of billions of dollars in the coming years and pave the way for the outright repeal of the oppressive New York gas tax of 32.4 cents per gallon.

Read all the case documents online at:
http://blog.jimostrowski.com/?page_id=1110

Keep up with news about the case at http://blog.jimostrowski.com/?cat=20

Downtown Buffalo after sundown is more dangerous than the South Bronx at midnight. The fact is there is no longer a reason for Buffalo to exist. It is a failed socialist experiment that has been going down the tubes since the ‘30’s. Every government attempt to revive the city has just made things worse. The fact is that very few people really want to live in the place. If you want tundra and winter desolation, Alaska will be much more to your liking. Young people, once they become adults flea the place like rats fleeing a tenement fire. Downtown is a disaster area, every major department store has fled.

The only thing that could possibly help would be to declare the entire city a federal and state tax free zone.

Actually this is the case for all upstate cities. Rochester and Syracuse are not much better.

And true to form, the democRATS have had a lock on the city government for years and the city looks like Zimbabwe or some other 3rd world socialist hell-hole.

Buffalo was once a great city. Steel, railroads, oil refining, grain mills and automobiles. Now it’s just two banks, M&T and HSBC which is chinese owned.

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