The proposed Gaylord hotel and convention center in Aurora offers the chance to boost the region’s economy, create jobs, expand tax revenues and provide a new national attraction for Colorado. It’s size, scope and promise have earned enthusiastic supporters but also some tough, but important questions. The facts surrounding the project, though, will convert skeptics into supporters.
I’m a business leader who owns a company headquartered in Denver, but I live in Aurora. When I learned about the Gaylord project, I saw it as a winning opportunity for Denver, Aurora and our entire region.
With any new, groundbreaking and innovative project, there is always a chorus of naysayers who mask their fear of additional competition — or just something new and different — with trying to give the project a death of a thousand questions. That’s what is predictably happening with the Gaylord project.
Our region has a long history of backing projects that benefit citizens and taxpayers throughout the Denver Metro Area. One of those projects — which received 100 percent public funding totaling more than $644 million — is the Denver convention center and hotel. Denver tourism advocates aggressively touted the return that investment would bring.
In contrast, the Gaylord project would couple public investment with more than $800 million in private funding — a far better deal. Unfortunately, the same Denver tourism advocates are now saying that they “don’t want to compete with something that is heavily subsidized.” If the Denver convention center was a good deal for our region back then, it’s hard to compute why a less-subsidized tourism and convention magnet is not a good deal today.
It is clear that the crux of the concerns being raised center on a natural desire to avoid competition. No business wants more competition, but we all know, deep down, that competition not only makes us better, but benefits our consumers. That would certainly be the case with a new, state-of-the-art hotel and convention facility such as Gaylord has proposed.
So should the Gaylord project earn RTA funding?
In looking at the specific criteria for these state subsidiaries, as directly quoted below, it’s a lock that that the Gaylord project is a strong match:
“Project is of an extraordinary and unique nature and is reasonably anticipated to contribute significantly to economic development and Tourism in the state and communities where Project is located”
In terms of contributing “significantly to economic development and tourism in the state and communities,” a recent study shows that the proposed development is projected to create more than 3,100 direct and indirect jobs and approximately 2,000 construction jobs. Further, another recent report shows that since the Gaylord Texan’s opening in 2004, the Dallas/Fort Worth metropolitan area has seen almost $1.8 billion in new economic activity related to guest spending.
“Project is reasonably anticipated to result in a substantial increase in out-of-state Tourism (include increase projected amount and percentage).”
A survey of meeting planners nationally shows that 85 percent feel they are underserved in the Greater Denver region due to the lack of an “under one roof” meeting and convention space. In addition, up to 80 percent of the meetings at the proposed Gaylord resort would come from current Gaylord customers across the country. This translates into a huge increase in out-of-state guests who otherwise would not be visiting the greater Denver market.
“Significant portion of the sales tax revenue generated by the Project is reasonably anticipated to be attributable to transactions with nonresidents of the Zone.
The strong number of meeting and convention guests at Gaylord properties creates a major source of revenue for their communities — everyone from taxi drivers to local retailers — which translates into significant tax dollars.
“Local Government has provided reliable economic data demonstrating that, in the absence of State Sales Tax Increment Revenue, the Project is not reasonably anticipated to be developed within the foreseeable future.”
Gaylord has previously stated that the only way this project can become reality is with the RTA funding. Make no mistake: this will be one of the biggest and most important hotel projects in the nation, and likely the biggest outside of Las Vegas. The support from local communities is a win-win, since the return on their investment will be significant for years to come.
The surest route to economic revival is the creation of quality jobs, and sparking new economic opportunities for existing businesses. Stiff-arming new competition in the private sector, in contrast, is a recipe for the struggling status quo.
The Gaylord project offers solid economic growth, job creation and the shot-in-the-arm that our region needs. That’s what the facts show, and that’s why this project can and must earn the support of elected and civic leaders, pro-business organizations and, above all, citizens and taxpayers in the Denver Metro region.
David McReynolds is president of the Columbine Health Plan in Denver.
EDITOR’S NOTE: This is an online-only column and has not been edited.
