DON’T BE FOOLED BY HILTON
OWNER BENY ALAGEM’S THREATS.
|
The Hilton owner threatens: “If Measure H is defeated, that is the end of the project.”
|
NOT TRUE.
He is spending millions of dollars on lobbyists, including a battery of ex-mayors, television ads, paid focus groups, high-priced PR experts, paid door-to-door canvassers, glitzy brochures and mailers, and a storefront office in order to convince you that it’s all or nothing.
The Hilton developer claims that “there has not been a luxury hotel built in the United States in over a decade that did not have a residential component or a major government subsidy. That is the only way luxury hotels are economically viable.”
NOT TRUE.
The truth is as close as Westlake Village. The Four Seasons, Westlake Village was built entirely without condos or government subsidies and opened in November of 2006.
Economically viable: The Four Seasons Westlake Village was built without subsidies or condos.
It is clear that Beny Alagem defines “economic viability” not by whether he can secure financing for his expansion, but by how many hundreds of millions of dollars he can earn from the condo towers.
The Hilton owner paid $130 million for the Hilton, including a functioning hotel. The smaller adjacent property at 9900 Wilshire recently sold for $500 million, for land value only. On the basis of the Hilton’s current value, the Hilton developer has sufficient equity to secure financing for a new luxury hotel, without any condos. And a smaller-scale, luxury hotel on the Hilton property like the Peninsula, which generated $5.6 million in revenue to the City last year, has the potential to be just as successful — especially with the advantage of the Beverly Hills name, which means the hotel can charge premium rates.
A NO on H means that the Hilton owner will be back with a smaller hotel project very simply because it is in his own financial interests to do so.
|
The Hilton owner threatens: Without Measure H, the schools will lose money.
|
NOT TRUE.
In fact, the only money earmarked for the schools is a one-time fee of $2.3 million, of which $1.6 is budgeted for mitigation of adverse environmental impacts caused by the Hilton construction.
THE HILTON EXPANSION COULD ACTUALLY END UP COSTING THE SCHOOL DISTRICT MONEY.
Beverly Hills School District Board Member Dr. Brian D. Goldberg says: “I believe our independent mitigation measures will exceed the $1.6 school benefit fee and we may have to dip into the District’s general fund to ensure the safety and health of our students and staff.”
|
The Hilton owner threatens: “Without Measure H, the City will not receive $12 million in new revenue each year,” which the Hilton propaganda has claimed is vital for school, police and fire services.
|
NOT TRUE.
In 2007, the Hilton projected a net new annual income to the City from the expansion of $6.1 million. By 2008, the Hilton financial claim magically grew to $12 million. None of this projected income is guaranteed and NONE of it is earmarked for police, fire or schools.
DON’T BE FOOLED BY THE HILTON OWNER’S THREATS.
Only by voting NO on H can we force the Hilton to come back with a smaller luxury hotel project that is more in keeping with the character of Beverly Hills.
Only by voting NO on H can we get all the potential benefits of a luxury hotel without the disadvantages of massive condo towers. The Hilton expansion would include up to 130 new residences, the equivalent of 5 ENTIRE CITY BLOCKS. As City Treasurer Eliot Finkel has stated: condos actually cost our City money because of an increased demand for vital City services. His analysis concludes that the net annual loss to the City is $2000 per resident.
Only by voting NO on H can we go back and negotiate a better deal for the City, with more money earmarked for the schools. In fact, we already have a good example of what halting the expansion plan can achieve. It was only after the Citizens’ Right to Decide Committee managed to qualify the Hilton expansion for the November ballot that the Hilton offered the BHEF an endowment. If we say NO on H, we can go back and make sure that the schools really do get their fair share.
|
The Hilton owner threatens that without the Hilton expansion, Measure H, the City will be unable to pay for vital City services.
|
NOT TRUE.
According to the current City Treasurer: “The City is financially stronger today than ever before.” He says, “The strength of our City’s financial institutions stands in stark contrast to the national economy.” Beverly Hills can afford to do it right.
The Hilton’s paid lobbyists and spinmeisters have come up with a slick political slogan. They describe the Hilton expansion as “The right plan – the right fit.”
The right plan? The right fit? Maybe for Chicago. Maybe for Century City. Maybe for Dubai. But not for Beverly Hills.
Beverly Hills does not need 18 story condo towers. Beverly Hills does not need the massive Hilton expansion. Beverly Hills does not need Measure H.
VOTE NO ON MEASURE H.
It’s just too big.
