The Trenton Times published the following article on November 29, 2013. To read the full article, click here.
Editorial: Trenton taxpayers get stuck with huge hotel bill after bankruptcy auction
By Times of Trenton Editorial Board
on November 29, 2013 at 6:00 AM, updated November 29, 2013 at 6:21 AMA chapter in Trenton’s history ended and another began with the sale of the Lafayette Yard Hotel for $6 million this week.
While the chapter is closed, the events it describes will have lasting repercussions in the city. Most of the immediate ramifications will cost taxpayers as they continue paying off the debt incurred from constructing the hotel and its lackluster performance.
The hope is that the new owner – Edison Broadcasting, a New York-based radio and television company — will bring about a good ending to the convoluted story that began when city and state officials decided to build a hotel to revive Trenton’s downtown.
At the time, it seemed like a good idea. This paper supported it, as did business and civic groups of every stripe. It never quite hit its stride, though, and bad decision after bad decision further compromised the business model.
By the time the Great Recession stormed in and the Marriott brand skipped out, it had become a white elephant weighing down the city’s economy. Few bookings meant frequent trips to the city council for handouts to keep the facility running.
It’s likely the city will remain responsible for much of the approximately $14 million in long-term debt secured by the city, Times staffer Jenna Pizzi reported this week. The city has been paying $1.4 million a year in debt service since the hotel opened,