05/21/02  LETTER TO MAYOR MILLER AND COUNCIL

I am asking you to vote NO on the $43 million tax abatement for the Palladium project. 

Here are three strong reasons for asking you to do this:

1.  Palladium has been very reluctant to release information concerning the project and just recently showed the council the pro forma. This sends up a huge red flag that they are not being completely up front and honest about this project.

2.  I believe this project could seriously have a negative impact on core downtown revitalization.  If this project just shifts sales and entertainment dollars from downtown to a new project outside the core district we have not accomplished anything.

3.  The agreement that the voters narrowly approved in 1998 very clearly spelled out that the contribution of the city would be $125 million for the arena, exemption for the arena from property taxes for 30 years, and $25 million for the street improvements. The master agreement also stated that Hillwood would have 15 years to develop the surrounding area into retail, hotel, and office as economic conditions permit.  No where in that agreement did it call for additional tax abatements.

During the mayoral debates in January of this year, all three candidates were asked if they would support additional tax abatements for the Victory/Palladium project.  Ms. Miller, Mr. Garcia and Mr. Dunning said NO.

Mr. Dunning said it plainly but bluntly when he said as much as he likes the construction and the jobs that this project means, a deal is still a deal.  

It is time for the people connected with Victory and Palladium to honor the agreement.