To the editor:

The city, county and school district will soon agree to provide the Oread Inn investors with potentially $20 million of tax revenue during the next 20 years based on a consultant’s report. When computing whether a subsidy is needed, the consultant uses unrealistic assumptions such as:

1. “Constant mill levy for 20 years.” Fact: The 2007 mill levy is 10 percent higher than the 1999 mill levy.

2. “Value of hotel and condos will increase 1 percent annually for 20 years.” Fact: Four local lodging-type properties had an average increase in value from 2006 to 2007 of 11 percent: Holidome (14 percent), Hampton Inn (2 percent), Eldridge (zero) and Springhill Suites (28 percent).

3. “Constant city and county sales tax rate for 20 years.” Fact: Today the combined sales tax of 2 percent is four times greater than the combined sales tax in 1995 (city, 0.5 percent; county, zero), and a proposal to increase the sales tax is being considered.

4. “Annual sales will increase 1 percent per year over the 20-year period.” Fact: According to Wyndham Smith Travel Research, the industry average annual revenue per room growth is 4.5 percent.

My comments are not intended to be critical of the investors or the impressive project which I support and expect to be a major financial success. Actually, I would like to be a member of the investor group even without the subsidy, but especially if Douglas County taxpayers want to provide such a generous subsidy.

Allen Ford,

Lawrence