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Our View: Gaylord deal comes up roses for Mesa
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Local government is at its worst when economic development incentives take money out of your wallet for the benefit of someone else’s. That’s when the pleasant sounding word “incentive” stinks to high heaven.
Our View: Gaylord resort deal: So far, so good
Mega-resort, conference center coming to Mesa
The city of Mesa’s incentives package for the $1 billion Gaylord convention resort complex has passed our initial sniff test. There is no rebate of sales taxes. There are no general fund giveaways that put your tax dollars at work for someone else.
As explained by Mesa Mayor Scott Smith, the city has agreed to waive property taxes on the roughly 100-acre site, once the resort complex and a companion hotel are operating. Instead, the property owners would have to pay a lesser excise tax to the governments — primarily the Gilbert school district — that would have collected the property tax. The benefit to Gaylord for the 50 years the agreement would be in effect is $72 million.
The city can do this under a state law designed to encourage large capital projects. Both Phoenix and Tempe have used the law, but this is the first time Mesa will use it.
Gaylord also would get to keep the 3 percent bed tax charged to hotel and convention guests. They must, however, use the money to market the hotel and Mesa. The proceeds from the bed tax would otherwise go to the Mesa Convention and Visitors Bureau for essentially the same purpose.
Smith emphasized that the bed tax is paid by visitors and would be used to attract other visitors to the resort and to Mesa. Both win. Smith added the agreement provides for an audit to make sure Gaylord is following the rules.
But what about the schools that will lose $72 million in property tax? Smith pointed out that this development will not place burdens on the school district. There will be no kids waiting for yellow buses at the resort.
Smith said he opposes incentives for retail and business that compete with existing businesses. The Gaylord development is different. There is no one in the same class with Gaylord in Mesa or anywhere in Arizona.
The project will speed up economic development of southeast Mesa near Phoenix-Mesa Gateway Airport by five years, Smith said.
Smith has thought this deal through. He adeptly explains it and defends it.
And when he does, it smells sweet.
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