Hotel Utica Countdown: H+31

It's now been a month since Utica Mayor David Roefaro missed his self-imposed deadline to resolve the Hotel Utica crisis.

Last month, the city's Urban and Economic Development Commissioner, Robert Sullivan, said that he and his crack staff had developed "several plans" to deal with the problem and were in the process of selecting their final solution. Supposedly, as he stated when interviewed by WKTV, we could expect a press conference "in the coming weeks".

Obviously, we're still waiting.

Mr. Roefaro's administration has continued to demonstrate, time and time again, a level of inability to handle this matter that truly boggles the mind. They've now spent months allegedly working on the problem and, despite constant talk of "getting tough" and "cracking down", have absolutely nothing to show for it. In the meantime the city has been on the hook for close to $10,000 a week covering the Hotel's debts.

That leaves us with only two possibilities for why the Roefaro administration continues to hem and haw while the city treasury hemorrhages cash: they're either incompetent or corrupt.

Given Mr. Roefaro's close ties to the owners of Hotel, and his support for the infamous "Friends and Family" plan, we should probably be praying that he's just incompetent.

Hotel Utica Countdown: H+26

My, how time flies.

It's now been almost a month since Utica Mayor David Roefaro failed to meet his 90-day deadline for resolving the Hotel Utica crisis. Taxpayer's are still subsidizing the lavish lifestyles of the Hotel's owners even as Mr. Roefaro reportedly negotiates some sweet deals for holding his own fundraising events there, but there's nary a peep from City Hall about when the empty promises of "getting tough" will come to pass.

This comes on the heels of the mayor's hissy-fit last week over the mounds of garbage lining Utica's street. It seems to miss his notice that the half a million dollars a year the city is paying to cover the Hotel's bad debts could be paying for multiple full-time cleanup crews to pick up trash around the city.

Hotel Utica Countdown: H+21

It's now been three weeks since Utica Mayor David Roefaro and the crack staff of the city's Urban and Economic Development Department missed their self-imposed 90-day deadline for resolving the Hotel Utica crisis.

While the multi-millionare owners of the Hotel continue to enjoy the benefits of a regular flow of cash from the city things aren't quite so bright for the rest of Utica. The condition of downtown continues to worsen, as a new wave of graffiti starts covering the abandoned buildings and empty storefronts of what was once a proud city. These are exactly the kind of structures Community Development Block Grants were supposed to save, but instead of using those funds to stop urban decay the city continues to spend it's millions propping up the lavish lifestyles of a few, politically connected figures.

Hotel Utica Countdown: H+15

It's now been over two weeks since Utica Mayor David Roefaro and the crack staff of the city's Urban and Economic Development Department missed their self-imposed 90-day deadline for resolving the Hotel Utica crisis.

The silence is, as usual, deafening.

In the meantime the city has wasted just under $20,000 keeping the Hotel Utica afloat and filling the pockets of it's multi-millionaire owners.

Hotel Utica Countdown: H+13

It's now been nearly two weeks since Mayor David Roefaro failed to meet his self-imposed deadline for resolving the Hotel Utica. Today the Observer-Dispatch editorial board joins the growing chorus of voices saying it's time for less talk and more action:

In mid-May, Utica Mayor David Roefaro said he’d find a solution within 90 days to Hotel Utica’s chronic problems making tax and loan payments.

Those three months have come and gone, and Roefaro has failed to make good on his word. Indeed, the hotel hasn’t made a loan payment since then, and it remains behind on its city tax payments.

So much for bold promises. What the city needs to do is what it’s failed to do this entire decade — use its negotiating and legal powers to force the hotel to meet its obligations.

So far, the administration's response to calls for it to actually do something has been to lash out at anyone pointing out their epic failure. This whole sorry situation could probably have been avoided if city staffers were chosen on the basis of their expertise instead of their political and personal ties to the administration, but the Roefaro "Friends and Family Plan" has left the city of Utica with a management team that obviously isn't up to the task.

Update: Damn, I've been exposed! A conspiratorially minded emailer suggests that the OD's editorial, along with the one on the Roefaro "Friends and Family" plan from earlier this year, is proof that I am, in fact, one of the paper's editorial staff. Even more troubling is that the emailer has figured out my "hidden agenda" and plans to make a formal complaint to the FEC.

I desperately hope they aren't lying. Do you realize how much material I'd be able to milk out of that? I'm not sure how criticizing the Hotel Utica and Mr. Roefaro would earn me the ire of the FEC, but bring it on. Bwahahahahahahahaha!

Hotel Utica Countdown: H+12...Just Nine Years To Go!

CNY Homepage has posted more of their interview with Utica Mayor David Roefaro on the Hotel Utica issue over here. To summarize: Despite his earlier statements to the contrary there never was a 90-day deadline and it might take nine years to resolve the problem.

Nine. Years.

Just to recap, here's what Mr. Roefaro was saying in October of 2007:

We must give the hotel the opportunity to make good on their debt. However, inevitably if the hotel can't meet their business commitments, foreclosure is the only option. We can't hold just a few businesses to policy and we can not allow tax payers money to finance private interests.

Here's what he was saying in May of 2008:

Mayor David Roefaro said in 90 days the city should have a resolution to Hotel Utica’s continuing pattern of falling behind on its tax and federal loan payments.

The CNY Homepage Link video featuring his initial repudiation of the 90-day deadline is over here.

While Mr. Roefaro continues to waffle about what he actually said, much less what his administration actually intends to do, the city continues to pay thousands of dollars a week keeping the failed Hotel Utica project alive and lining the pockets of millionaires.

No, Really, This Time We Mean It

After repeatedly failing to meet their own deadlines for a solution to the Hotel Utica problem the Roefaro administration says things are going to change. And they really, really, really mean it this time:

Commissioner of Urban and Economic development Robert Sullivan says we can soon expect to hear some solutions to Hotel Utica's ongoing financial struggles.

The hotel owes more than $6 million on a loan from the U.S. Department of Housing and thousands in city taxes.

While the management for the hotel says they are working on payments, the city says it is been carrying a burden of the costs.

City officials say they will work with the owners to keep it afloat because closing up a downtown building is not a good option.

Keeping the Hotel Utica afloat isn't a solution- it's the problem. We've already spent millions of taxpayer dollars propping it up. Hopefully the planned "solution" includes finding a buyer that's willing to take it off our hands for less than it would cost us to keep subsidizing the current operation.

Hotel Utica Countdown: H+9

Nine days have now passed since Utica Mayor David Roefaro failed to meet his self-imposed deadline for resolving the Hotel Utica fiasco. I'll refrain from too much self-congratulation (and the inevitable blogger triumphalism) and simply point out that the Observer-Dispatch has finally covered the story:

Hotel Utica remains behind on some tax and loan payments more than three months after Mayor David Roefaro said the city expected to find a solution to the difficulties within 90 days.

City and hotel officials said they still are communicating about their options and are working on plans that would allow hotel officials to consistently pay on time.

This is exactly where we stood three months ago, so Mr. Roefaro and his staff have the dubious distinction of accomplishing absolutely nothing in the last 90 days. This despite repeated pledges to "resolve" the issue or at least "reach a consensus" on the problem. Put simply, Mr. Roefaro has been lying through his teeth.

Hotel officials paid more than $132,500 in Utica City School District taxes on July 21 and more than $40,700 in Oneida County taxes on Aug. 19, according to school and county records.

But the hotel is past due on almost $70,000 in city taxes and has missed its last four U.S. Department of Housing and Urban Development loan payments to the city, according to city records.

“Some tough decisions have to be made by the ownership,” city Urban and Economic Development Commissioner Robert Sullivan said. “Because that cannot and will not continue.”

That's tough talk coming from a man that's delinquent on his own payments to the city, a situation that, amazingly, hasn't resulted in his resignation or firing. At this point the idea that anyone would take Mr. Sullivan's pronouncements seriously is beyond laughable. Could someone please order him a big rubber nose and some size 36 shoes? If the man is going to beclown himself so thoroughly it's only right that he dresses the part.

On May 15, Roefaro said a solution to the hotel’s payment difficulties was expected within 90 days.

Now, about 100 days later, Roefaro says that goal wasn’t set in stone.

“I don’t have a crystal ball,” he said.

Nor, apparently, much of a work ethic. I know the funeral and embalming business doesn't exactly run at a breakneck pace, but you would think Mr. Roefaro would have some appreciation for making an effort in order to meet a deadline. Otherwise we would be hearing from more of his funeral home customers about how bad dear old Aunt Milly smelled at her viewing.

Hotel Utica General Manager Tony Zaleski said the hotel had a strong summer with 90 percent occupancy in August and about 80 percent occupancy in July.

“As with anything else, we said all the taxes would be paid by the end of the summer,” he said, “and that will be the case.”

Zaleski said he wasn’t aware the loan payments haven’t been made because owners Joseph Carucci and Charles Gaetano handle those. He said he expects the payments to be on track soon, but the hotel spent about $200,000 this summer paying off school and county taxes.

“There’s just only so much money,” he said.

If the Hotel Utica has a 90 percent occupancy rate and still can't meet it's financial obligations it's time to accept that it simply isn't a viable concern. It's doomed to failure, and having the city continue to prop it up with millions of taxpayer dollars does nothing more than prolong the inevitable. Actually, it's the worst thing the city could do- with each passing day the hotel's debt, and the city's liability for same, continues to balloon ever higher.

In July 2007, Hotel Utica was behind more than $300,000 in taxes and had missed multiple loan payments on what was originally a $5 million loan from the U.S. Department of Housing and Urban Development that the city guaranteed during the Edward Hanna administration.

The hotel soon made the payments and renegotiated the loan deal, but then fell behind $215,000 in taxes by May.

Roefaro and Sullivan said they will continue to work with hotel officials on how they can meet the loan demands, but they stressed the need to begin making up some lost ground.

“They’ve got to start paying their money,” Roefaro said.

Roefaro said he can’t estimate when the situation will be resolved, but he has been and will continue meeting with the hotel’s owners to determine a plan as expeditiously as they can.

This is exactly where we were 90 days ago.

No, strike that. This is exactly where we were a year ago, back when Mr. Roefaro was just a candidate. He was mouthing the same "They have to pay, it's not right, something must be done" line then and he still hasn't accomplished anything.

I know the Mayor has had a busy schedule of parties, golf tournaments, and personal appearances, but is it too much to ask that he does some work that doesn't involve swinging a golf club or slurping down cannolis?

Since the crack squad at Utica City Hall can't seem to come up with a plan of action, much less carry one out, I'll offer up my own. It's not like I could do a worse job, right?

First, the city needs to determine if the Hotel Utica is actually a viable business. At this point every indication seems to be that it isn't, but a thorough audit and analysis of it's financial situation would put the question to rest once and for all. One would think the city would have already done this, but history demonstrates it's never a good idea to put any confidence in the capabilities of city workers.

Second, the city has to decide what to do based on the results of the audit. If analysis shows that the Hotel has a snowball's chance in hell of actually meeting it's obligations the city and hotel need to come to an agreement that includes a timeline of operations and regular benchmarks for success. If the audit shows the hotel's business plan won't work, or if the hotel fails to meet the terms of the agreement mentioned above, the only option is foreclosure.

Yes, that's a drastic option, but it's the only one the city has. If the hotel isn't a viable business the sooner the city forecloses, the better. Waiting just makes the process more expensive, since the city's loan liability grows with every passing day.

In the meantime the city needs to start shopping the property around and see how much it could get for it, either from another hotel chain or a business looking for some prime downtown real estate. Call me crazy, but selling off the building go at a fire sale price of one or two million dollars seems like an acceptable, if non-optimal, option. With the outstanding balance of the loan topping six million dollars the city would be in the hole for four million dollars, and that's equal to the interest the city would be paying for the next eight years anyway.

Wasted money? You bet. But we've already wasted millions more on the Hotel Utica and it's time for the fiscal hemmoraghing to stop.

Update: Here's a flashback to what Mr. Roefaro was saying back in 2007:

Hotel Utica's owners have consistently failed to meet loan repayment terms since 2001, and have fallen behind on their taxes the past two years. How should Utica address this situation?

The Hotel Utica situation is a bi-product of both the Hanna and Julian administration that lacked both the commitment to tackle real business issues and the integrity to admit when they made some serious mistakes.

We must give the hotel the opportunity to make good on their debt. However, inevitably if the hotel can't meet their business commitments, foreclosure is the only option. We can't hold just a few businesses to policy and we can not allow tax payers money to finance private interests.

Hotel Utica Countdown: H+8

We're now eight days past Mayor David Roefaro's deadline for resolving...er..."reaching consensus on"...the Hotel Utica fiasco.

Servicing the Hotel's debt costs the city $1315 a day, so another $10,520 in desperately needed public funds have vanished into the ether since Mr. Roefaro's 90-day deadline was reached. That's on top of the millions of dollars the project has already consumed.

For some more background, check out Joe Kelly's interview with the Hotel Utica's General Manager over at CNYHomepage.com.

Update: This is kinda related to the "Observer-Dispatch Deathwatch" below, but a kind emailer points out that the only outlets of any kind covering Mr. Roefaro's inability to handle the Hotel Utica issue are all online. None of the traditional news outlets, be it the OD, WKTV, or what passes for news at the local radio stations, have done anything on the issue for months.

What I find particularly interesting is that CNY Homepage is produced by the broadcast group that owns WUTR, WFXV, and WPNY, none of which could realistically be described as "news" outlets. I believe the last locally produced newscast on any of those stations happened back in 2005, just before their ownership consolidated operations at the former WUTR studios on Smith Hill. It's unfortunate that the area's population collapse made that consolidation necessary, but I think it's notable that the low cost of distributing content via the internet has, to an extent, once gain made them a viable news source.

Hotel Utica Countdown: H+7 And Roefaro Speaks!

Utica Mayor David Roefaro has finally responded to questions about his handling of the Hotel Utica fiasco via a video at CNY Homepage. You'll find the clip over here under the title "The Link 8.19.08".

I'm assuming I'm the blogger referred to in the opening blurb, so I'd like to point out that I haven't claimed Mr. Roefaro promised to resolve the Hotel situation in his first 90 days in office. I've merely taken him at his word based on the May 15th, 2008 Observer-Dispatch article on the subject:

Mayor David Roefaro said in 90 days the city should have a resolution to Hotel Utica’s continuing pattern of falling behind on its tax and federal loan payments.

That self-imposed deadline ended last Wednesday.

As you can see from the clip, Mr. Roefaro doesn't think anyone should expect him to, you know, do what he said he would do. In fact, it appears he's now claiming that his earlier statement, or at least the version of it referenced in the OD story, didn't actually mean what it seemed to mean. He didn't promise a solution in 90 days, he just promised a "consensus" in 90 days.

Okay. I'll bite. What's the consensus?

Should the city foreclose on the Hotel Utica? Should the financing deal be renegotiated yet again? Should things just continue as they are? Amazingly, even after Mr. Roefaro lowers the bar down to reaching a "consensus" he still doesn't follow through!

Keep in mind that the city is paying $480,000 this year alone to service the Hotel's debt. That breaks down to just over $9000 a week, or around $1300 a day. In a city where significant chunks of downtown look like the post-apocalyptic ruins from a Mad Max film that money could be paying for desperately needed repairs and improvements. Instead, it's being dropped into a black hole never to be seen again.

So the Hotel Utica countdown continues. Without a resolution, without a "consensus", and without any foreseeable end. All to the tune of another $1300 in wasted tax dollars for every day that passes while Mayor Roefaro concentrates on planning parties and attending golf tournaments.

Hotel Utica Countdown: H+6

We're now six days past Utica Mayor Dave Roefaro's self-imposed 90-day deadline for resolving the Hotel Utica fiasco. There's still no word from the Mayor's office about what, if any, action he's taken.

Hotel Utica Countdown: H+5

We're now five days past Utica Mayor Dave Roefaro's self-imposed 90-day deadline for resolving the Hotel Utica fiasco. While that situation might not be a priority, despite the millions of dollars it's already cost city taxpayers, don't let it be said that Mr. Roefaro has been slacking off. He's not only had had time to participate in a golf tournament, but planning is already underway for next years much-anticipated mayoral charity ball.

Hotel Utica Countdown: H+2

We're now two days past Utica Mayor Dave Roefaro's self-imposed 90-day deadline for resolving the Hotel Utica Debacle. In the private sector missing a deadline by two days is likely to get you fired, but Mr. Roefaro has obviously taken the undemanding standards of government work to heart. And why shouldn't he? It's not like being Mayor is his full-time job.

Heh.

Snarkiness aside, in the unlikely event that the mayor and his crack team of economic advisors actually do issue some kind of plan today I'm willing to bet it consists of, ultimately, doing nothing. Sure, it'll be dressed up with some happy talk about saving jobs and keeping the Hotel on the tax rolls, but in the end Mr. Roefaro will just roll over and let things continue as they are. If he's willing to ignore the fact that his own Economic Development Commissioner is an epic tax deadbeat there's no reason he should hold anyone else to a higher standard.

After all, things like deadlines and standards are what you have in the private sector. Expecting them to apply to government is just a naive fantasy.

Hotel Utica Countdown: H+1

Utica Mayor David Roefaro's deadline to solve the Hotel Utica crisis has now come and gone with no resolution in sight.

To be fair, there's a good chance the Mayor assumes his May 15th pledge to solve the crisis comes due on August 15th, since it's not unusual for people to confuse "90 days" with "three months". Heck, the profit margins of the credit card industry *rely* on people making that mistake. Might as well give him the benefit of the doubt and wait till tomorrow to hear all the details. After all, you can't rush genius.

On a related note, there's a rumor going around that Robert Sullivan, the city's Urban and Economic Development Commissioner, is actually acting as a consultant to the owners of the Hotel Utica. This is obviously just a rumor, since the conflict of interest this kind that arrangement would represent wouldn't pass the sniff test even by the cheerfully corrupt standards of Utica.

Right?

(Sorry for the lack of posting over the last two days. A rush project fell into my lap and I simply didn't have the time to write even the usual dashed-off tripe.)

Hotel Utica Countdown: H - 2 Days

Back in May it seemed as if the long-running Hotel Utica disaster would never come to a close. That's when Utica's visionary mayor Dave Roefaro pledged to resolve the mess in 90 days:

Mayor David Roefaro said in 90 days the city should have a resolution to Hotel Utica’s continuing pattern of falling behind on its tax and federal loan payments.

Roefaro and Urban and Economic Development Commissioner Robert Sullivan Thursday met with hotel co-owners Joseph R. Carucci and Charles N. Gaetano. The mayor said a few options were discussed, but he wouldn’t elaborate.

The Observer-Dispatch on Sunday reported the hotel owes more than $215,000 on its city, Oneida County and Utica City School District taxes, including $18,500 in penalties. The hotel has also missed its last two city-guaranteed payments on a federal loan that
helped the establishment reopen seven years ago.

Mr. Roefaro's 90-day deadline comes to a close on August 13th, just two days from now. With millions of taxpayer dollars on the line his plan is sure to have wide-ranging consequences for the entire city. Will he go ahead with foreclosure? Or will he opt to continue spending close to a quarter of a million dollars of economic development funds a year supporting the Hotel?

In just two days we'll find out.

Hotel Utica Countdown: H - 5 Days

Almost forgot...only five days until Dave Roefaro solves the Hotel Utica problem.

Go get 'em, tiger!

Hotel Utica Countdown: H - 6 Days

We're now just 6 days away from the end of the 90-day resolution period Utica Mayor David Roefaro imposed for the Hotel Utica problem.

I'm giddy with anticipation.

Hotel Utica Countdown: H - 7 Days

Only a week to go before we find out how Dave Roefaro is going to solve the Hotel Utica problem.

I'm quivering in anticipation.

Hotel Utica Countdown: H - 9 Days

How time flies. It seems like just yesterday that the ongoing Hotel Utica debacle entered it's latest phase, but now we're just nine days away from discovering how Mayor Dave Roefaro and the crack team at City Hall are going to solve the whole sorry mess:

Mayor David Roefaro said in 90 days the city should have a resolution to Hotel Utica’s continuing pattern of falling behind on its tax and federal loan payments.

Roefaro and Urban and Economic Development Commissioner Robert Sullivan Thursday met with hotel co-owners Joseph R. Carucci and Charles N. Gaetano. The mayor said a few options were discussed, but he wouldn’t elaborate.

That 90-day period comes to a close on August 13th. Will Roefaro stick to his principles and refuse to continue subsidizing a private business? Or will he cave and keep the Hotel Utica's taxpayer-supported gravy train chugging along?

Update: As the suspense builds, keep in mind that the Hotel Utica *should* be one of the most successful hotels in the country based on it's own business figures. Here's a flashback to some numbers from earlier this year:

What an interesting contrast. By any objective standard the Hotel Utica is in desperate financial straits, as it's inability to make regular tax and mortgage payments would clearly demonstrate. Business must be terrible, right?

Actually, no. If the given figure of a 70% occupancy rate is true the Hotel Utica is doing some boffo business. In fact, based on numbers from the American Hotel and Lodging Association, it's occupancy rate is well above average. Here are the latest figures for the hotel industry as a whole:


At-a-Glance Statistical Figures

4,389,443 guestrooms
$133.4 billion in sales
$61.93 revenue per available room (RevPAR)
63.3% average occupancy rate

The average room rate was $97.78 in 2006—up from $90.88 in 2005.


A quick check of Travelocity shows that the weekday rate at the Hotel Utica is $99.99 while the weekend rate is $149.99.

That means both the hotel's standard room price and occupancy rate is well above the industry average, which would seem to be exactly what you want for a thriving hotel.

The Hotel Utica: Your Tax Dollars At Work

You would think an infusion of over $5 million dollars in taxpayer cash would allow the Hotel Utica to truly recapture the grandeur and style of it's bygone glory days.

In reality, quite the opposite seems to be true, at least according to the reviews on popular vacation planning site TripAdvisor. Here's what some of the more brutal visitors had to say:

The bed sagged in the middle, the hallway carpets were dull and dingy. There appeared to be remnants of blood stains on the wall of my room, which was 606 by the way. Urine stains in front of the toilet and outdated tv's as well. The steak in the 1912 restaurant was very tough and the food was just average. Front desk staff was uncaring and indifferent.

Be prepared to schlep your own luggage up stairs to lobby. All 3 entrances, including the one leading to the parking lot, have stairs. Wheelchair lift is at entrance on the opposite side of the building from the parking lot--If you have trouble with stairs i wouldn't recommend travelling alone to this hotel.

After concert came back to room to have coffee, there was still coffee in pot from last customer, front desk at this time of nite no help, my wife had to go down to the hotel restaurant herself and wash out coffee pot.

As a native of the area, I can say for sure that it's not the best part of Utica, and I probably wouldn't walk around too far alone but the place is completely safe inside so as long as you don't plan on venturing out alone in the depths of the night.

Breakfast was only fair considering the purported stature of the hotel, and quality of maid service could be improved. At the moment this is still an interesting and adequate hotel, but it appears to be at risk for the future.

The soda was flat, the wait staff slow, it was the WORST hotel experience of our life. Whatever CLASS this hotel had was in the past. We were very, very disappointed!

Body fluids, dirty pots, dingy interiors, and a warning not to go outside at night- and those are just the reviews from the first two pages. It sure looks like that $5 million dollars is paying some big dividends, eh?