Opponents of the finance plan for a proposed hotel near the Oregon Convention Center have turned to a new tool for their opposition to the $198 million project – Oregon Revised Statutes.
The opponents, mostly downtown hotel owners, are pointing to a chapter of Oregon Revised Statutes that lays out Metro's authority.
A section of that chapter, 268.310, says, "Subject to the provisions of a district charter, (Metro) may… Acquire, construct, alter, maintain, administer and operate major cultural, convention, exhibition, sports and entertainment facilities. However, unless the electors of the district first approve the financing of the facilities, the district shall not … Construct new facilities."
The opponents say Metro can't push the hotel project without consent from the voters.
"We are asking for one thing only: that the right of the people to make the final decision about this hotel deal not be violated," said the opposition in a statement. "Metro could end these legal proceedings today by simply agreeing to put this important matter to a public vote, but they refuse to do so."
In a statement, Metro Council President Tom Hughes dismissed the lawsuit as a campaign tactic.
"This is the second unfounded lawsuit filed, not by hotel owners, operators or workers, but by paid lobbyists," Hughes said. "By attempting to tie the project up in court once again, after losing the first legal challenge outright, this is nothing more than a delay tactic funded by a small and vocal minority."
Metro officials say the project isn't a Metro facility – in the finance plan, Hyatt and its development partners are contributing $120 million of the project's $198 million cost, with $60 million in Metro-issued bonds – repaid by room taxes on visits to the Hyatt – covering the bulk of the remainder.
Opponents say the Hyatt won't attract enough guests to pay off the bonds, and worry that taxes on stays at competing hotels will pay for construction of the Hyatt. Proponents say even the most dire financial projections show that the room taxes can pay off the bonds.
All of that, though, is contingent on Metro, Hyatt and the project's development partners reaching a development agreement to move forward.
Andy Shaw, Hughes' chief of staff, said he hopes that will be done soon.
"We continue to negotiate the development agreement and plan on bringing it to our council this spring for approval," Shaw said.
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