Look at the Vegas strip: a hotel on the strip will easily cost you AT LEAST twice on the strip vs. just a block away. The strip itself is such a destination and experience that it's a no brainier for people to pay a premium to stay right on it in the mix of it all. Developers continually feed off of that demand and build bigger and better casinos and hotels, which in turn makes it into even more of a destination...
In the same way the 76 strip is trying to get that ball rolling, but it takes money. People may grumble at a little extra tax at first (if they even notice), but if the plan works then it'll pay massive dividends down the road.