Picking Winners and Losers

It should be no surprise that Belle Restaurant in Cary’s Downtown Jones House, failed in just about one year.

Belle closed 1The Cary Town Council thought it knew better than the free market and decided that it is government’s job to build a restaurant.   Then they picked the “winners” who would get this restaurant – people without the capital, experience, or business plan to launch a competitive business on their own.

Thinking they could create market demand where none existed, the Council also picked the “losers” – we taxpayers, and nearby businesses who did not get public subsidies.

We, the taxpayers built their restaurant and subsidized their rent

The Cary Town Council spent $600,000 of our money to buy the dilapidated Jones House and used another $300,000 for repairs and upgrades needed to accommodate a restaurant. The Council then decided the “winners” should only have to pay about $2000 to lease this municipal restaurant. So we taxpayers also subsidized their rent, as well as maintaining the building and grounds for them. The Council further shortchanged us because this public works restaurant is tax exempt property, and will provide no tax revenue.

The politicians call it investing.  we call it a wasteful spending spree.

Belle Restaurant failed because winners and losers emerge from the competition of business – not from City Planning and Town Councils. Cary Watch objected to this role of government, providing the Council the detailed financial risks. But their city planners and high paid consultants said a restaurant would be cool and what the heck, it’s not their money.

If there is any good news here it’s that with Belle gone, the other taxpayer funded restaurant across the street at the Mayton Inn will have less competition.

Belle though, is a harbinger of what is in store for us taxpayers over at the Mayton Inn. Without a market study or business plan, the Town Council has given a Durham couple over $6 million in land and subsidies to build their $300 per night boutique hotel and martini bar. Why would the Town Council use $6M taxpayer dollars to subsidize a restaurant, bar, and meeting facilities to compete with already struggling “downtown” businesses?

Will the Town sell this restaurant property and let private enterprise take over? Nope. the mayor says he wants to stay in the restaurant business and is now looking to pick a new “winner”.

It’s Only Just Begun

These are just the opening moves in the  Cary Town Council’s downtown game of winners and losers. But the game is easy to figure out. Just look at your property reassessment and upcoming tax bill. You’ll see right away who they picked for the losers.