The current plan to build the proposed Marriot hotel in downtown Lancaster includes $15.5 in loans backed by State TIF grants and guaranteed by Lancaster City taxpayers, a $24 million "mortgage" on the building which would be owned by the Redevelopment Authority of the City of Lancaster, and $11 million from the Penn Square Partners to furnish the facility. In addition, all the "shared" space would be built and maintained by the Lancaster County Convention Center Authority, which greatly reduces the cost of the hotel itself.

Compare this to the announcement on September 6, 2006, of a new "upscale" hotel to be built in downtown Harrisburg, which includes 148 rooms on 14 floors, at a total cost of $10 million dollars in PRIVATE investment.

The Harrisburg Patriot-News is reporting that the president of the hotel developer is a Lancaster County native.

According to The Harrisburg Patriot-News, "The proposed hotel building is to include 2,700 square feet of street-level retail space."

Harrisburg Mayor Steven Reed was quoted as saying, "Private investment firms are more and more taking over," he said. "That should always be the long-range goal of any economic development program."

Admittedly downtown Harrisburg's two other major hotels included both public and private financing. However, NEITHER required anywhere near the degree of taxpayer investment and guarantees, nor the tax breaks, that are being demanded by the developers of the proposed hotel at Penn Square in downtown Lancaster.

But the single biggest question remains:

If a private investor can build a 148 room, 14-story, 100,000 square foot upscale hotel in downtown Harrisburg for only $10 million, why is the proposed taxpayer-financed hotel in downtown Lancaster expected to cost so much?

The original articles can be found on the www.PennLive.com Web site, or link directly to the lead article by clicking here.