State Sen. Lou Correa, responding to the uproar over a $158-million subsidy the Anaheim City Council granted a group of hotel developers, is moving to sponsor legislation that would force disclosure of all investors in such projects.
“People ought to know where their tax dollars are going and who the players are,” said Correa (D-Anaheim).
Correa’s move toward legislation follows calls by Anaheim Mayor Tom Tait for the disclosure of investors in two proposed four-star hotels in the city’s GardenWalk center.
Correa said he hasn’t formulated an opinion on the subsidy deal, saying, “I don’t know enough about this deal yet to know whether it’s a good transaction or not.”
But he does question the guaranteed 16 percent rate of return for the investors on the project. Correa said such an interest rate is akin to what a lender would get on a “hard money loan.”
“That kind of return is typically associated with a high-risk investment,” Correa said.
“Is that the kind of risk that’s associated with this deal? … Is GardenWalk that much of a risk?