El Segundo Measure A Co-Chair Joe Harding was Against the Tax Hikes Before He was For Them

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 6, 2014

Joe Harding is one of two co-chairs identified on the “Yes on A for El Segundo’s Future” campaign committee website. Harding is also treasurer of the campaign committee as indicated on the first FPPC 460 campaign finance disclosure filed by the committee with the El Segundo City Clerk.

Harding was against the tax hikes before he was for them. He spoke out strongly against the tax hikes at the August 3, 2010 El Segundo City Council meeting when he was the General Manager of the Hacienda Hotel in El Segundo (HaciendaHotel.com). Now he is campaigning on the opposite side, for the tax hikes which hit hotels especially hard, as an ex-employee of the Hacienda. Here is an excerpt of what Harding said as a Hacienda Hotel employee:

“You must say ‘No’ to the hotel killer tax. … A TOT, and a UUT would hit us twice. That’d be like kicking us when we’re down, and then running us over for good measure. … The City must make unpopular and difficult adjustments to their payroll and expenses. Asking businesses to pick up the bill for the City and its residents in this economy is simply not a fair approach. The Hacienda has been and will remain a stellar business in this community. Help make sure this continues. Leave the TOT where it is. It’s working for us. It’s working for the City. … Thank you.” – Joe Harding, General Manager of the Hacienda Hotel in El Segundo, speaking at the August 3, 2010 El Segundo City Council meeting, before he became an ex-employee of the Hacienda, flip-flopped, and became a co-chair of the Yes on Measure A committee to raise both the TOT and UUT taxes on the Hacienda and all other hotels and businesses in El Segundo, and to impose them on residents.

Here is a video I made for the April 10, 2012 El Segundo City Council Election that includes Joe Harding’s full speech, starting at about time 3:32 to 5:46, followed by a transcript of his full speech.

Scott Houston in Raising Taxes 101 – El Segundo – Public Safety Project – T0758

Speech by Joe Harding, then General Manager of the Hacienda Hotel in El Segundo (HaciendaHotel.com), and now “Yes on Measure A for El Segundo’s Future” campaign committee co-chair and treasurer, at the August 3, 2010 El Segundo City Council meeting

Mayor Eric Busch:

“Joe, please.”

Joe Harding:

“Thank you. Joe Harding, representing the Hacienda Hotel and also a resident of El Segundo. Back again to plead our case with regards to the increase in the TOT. Most of you have seen first-hand what our industry has endured over the past 27 years, and I want to say thank you for hearing us out and understanding our position. Our industry just can’t handle any increase at this time. Not in this economy, not with the current room rate structure in Los Angeles, not with the shift in our competitive set. You simply have to take this off the table. You must say “No” to the hotel killer tax.

Our staff, mostly entry-level employees making twenty to thirty thousand dollars a year, substantially less than the City employees, have stepped up to take a 20 percent pay cut in order to keep their benefits and their jobs. They are doing their part to help us get through our financial crisis. We will survive because everyone is doing their fair share.

Today’s news is another example of where the travel industry stands. Mexicana Airlines cancelled four daily flights from Los Angeles and similar amounts from several other major U.S. cities. Was it drastic? Was it painful? Was it necessary for survival? I say smart move to stay alive.

We are already in the survival mode at the Hacienda. We can’t lose any more business to our competitors who is now every other hotel.

The current rate is a fair share and keeps El Segundo hotels in the game. We also understand a need for business community to step up and do something. Whatever this is, it needs to be fair, across the board, and not target any specific industry.

A TOT, and a UUT would hit us twice. That’d be like kicking us when we’re down, and then running us over for good measure.

We’ve heard discussion of a one percent increase in the UUT for two years. Certainly a more equitable way of sharing the burden. And trust me, any increase places a burden on our already thin margin.

The City must make unpopular and difficult adjustments to their payroll and expenses. Asking businesses to pick up the bill for the City and its residents in this economy is simply is not a fair approach. The Hacienda has been and will remain a stellar business in this community. Help make sure this continues. Leave the TOT where it is. It’s working for us. It’s working for the City. And I end with an open invitation to Scott Houston to come to breakfast, lunch, or dinner with me, so you can see the full picture about the condition of the hospitality industry. Thank you.”