The Ritz-Carlton Paradise Valley hotel is reportedly nearing completion, with an expected
opening date of late 2022 or early 2023. Town residents have been watching this project slowly
sprout for years. What kind of impact will the new resort have on the town’s funds?
I’m excited for the opening of the Ritz. I was not on council when the development agreement
was drafted and adopted by a 4-3 vote on Town Council.
I do support this project as I want to see it completed soon. As far as an economic impact to the
Town of Paradise Valley, the land where it is being built has never been improved in my lifetime
in Paradise Valley of 49 years and so the impact, I see to be incremental and impactful, in the
end.
This will be another resort revenue to add to our increasing amount of resort activity happening
in town. Our current CFO is monitoring and not yet ready to provide any data.
As of February 2022 (FY 2021/2022) the town’s revenue for accommodations is up 122%
($2.2M), restaurant and bar 221% ($3.1M) and arts and entertainment 100% ($100K) for a total
increase of 47% ($6M). This is sales tax revenue. (See Council Meeting 4/28/2022, Agenda Item
22-174)
With the onset of the Ritz and the current positive operating environment of our resorts, we
should expect another jump year over year once the Ritz operations commence,
notwithstanding any sort of economic event such as a recession. The Q1 2022 GDP rate (-1.4%)
dropped significantly from Q4 2020 (6.9%), hopefully this doesn’t become a trend.
While monitoring revenue trends closely, this additional revenue the town has never
experienced before may provide more CIP opportunities to improve infrastructure and perhaps
a second look at the fire service fee annual charge. I have advocated for a resident expert
investment committee.
The town has healthy reserves of $70 million in cash and growing. It states in our investment
policy that the town is to have an investment committee. I have sat, when organized, with two
other Council members on an investment subcommittee. If re-elected, I will continue to
advocate and gain the support of council to form an investment committee of resident experts,
not politicians.