Here in St. Louis, we now know the folly of listening to consultants who promise that a big new hotel will attract more convention business. Our downtown Renaissance Hotel, built on the basis of such projections, has just defaulted on its debt payments. But 180 miles to the northeast, the consultants are still making such promises, and the leaders of Peoria are in a mood to believe them.

The Peoria City Council endorsed a plan last month that would provide $39 million of public financing for a new Marriott Hotel attached to the Civic Center. In one respect, the city would be making an even greater commitment than St. Louis did: Peoria appears to be talking about issuing general obligation bonds, which the city would repay out of tax revenue. St. Louis’ convention hotel was financed with revenue bonds, with no obligation for the city itself to make payments.

The plan is based on the hotel drawing more conventioneers to Peoria, which will bring the city more money through taxes on hotel rooms, restaurant meals and other spending. The discussion in this Peoria Journal Star report will sound familiar to St. Louisans:

In recent years, Civic Center convention business has remained relatively stable, even after the $55 million expansion of its facility to add more convention hall space …. Debbie Ritschel, general manager of the Civic Center, said a main reason for the lack of increased convention business is because there is no attached hotel. She said once it’s connected, “20 to 30 clients” who have turned down coming to Peoria in the past because the Civic Center doesn’t have an attached hotel, will be reconsidered. “It also opens a series of clients we haven’t approached,” she said.

Peoria’s Marriott isn’t yet a sure thing. The deal is contingent on a developer’s ability to raise $54 million of private financing, which may be a tall order in today’s market.