• Scam Diego alerts

Chula Vista has declared itself in a fiscal emergency. This means it is bleeding so much it could ask the voters for a sales tax increase. The city is considering a layoff of 130 employees, and closing of faciities such as the city pool. Meanwhile, Gaylord Entertainment is experiencing weakness at its facilities. This is the company that wanted a $300 million subsidy to build a $1 billion hotel and convention center on the Chula Vista bayfront. After many fits and starts, the marriage appears to be over, but you never know when it will appear back on the table. Gaylord reported that in November, same-store revenue at its corporate resorts dropped 5.4 percent. The preliminary drop for December is 4.8 percent. Same-store revenue reflects sales in facilities that have been open at least a year. The company's newest convention center facility in Maryland, opened in 2008, is operating at a mere 56 percent occupancy rate. Gaylord's stock is at $13.12 today, down 3 percent, but it has been as low as $5.27 this year. The high is $36.27 over the last year. The company is very heavily leveraged.

  • Scam Diego alerts

Comments

JohnnyVegas Jan. 9, 2009 @ 2:38 p.m.

Chula Vista has declared itself in a fiscal emergency. This means it is bleeding so much it could ask the voters for a sales tax increase.

That is not a sales tax-it is a pension tax.

I said 2 years ago CV was going to be in the same boat as San Diego from their over spending and gigantic retroactive pension increases-and I was correct.

I predict CV will file BK before San Diego does.

I also predict that no CV city employee will see a reduction in wages or benefits, nor will new employees when they do start hiring again.

Business as usual.

And if CV residents are stupid enough to vote for a sales tax hike (a regressive tax that hurts the poor but feathers the nest of the $200K per year CV employee very nicely) then they deserve to get fleeced. National City residents learned that lesson the hard way.

0

Don Bauder Jan. 9, 2009 @ 3:20 p.m.

Response to post #1: Chula Vista was on giggle juice, or smoking something. It was clear it was broke several years ago, as I stated in a column, but kept making big plans.I remember your commenting on CV's stupidity. Now CV has all those empty eastern homes and problems in the old west part, too. But I look at the names of the politicians down there and it seems like they are all the same ones who got the city into trouble. Have the voters ousted anybody there? Best, Don Bauder

0

Sign in to comment