Saturday, October 14, 2000
County to get funding sell job
Convention center expansion possible
By Ken Alltucker
The Cincinnati Enquirer
A group studying a proposed $334.9 million expansion of the Cincinnati convention center agreed Friday to give Hamilton County what it has asked for: proof that the expansion is a good deal.
Cincinnati Mayor Charlie Luken's task force ordered its consultant to figure out how much tax dollars Hamilton County would get if it helped pay to expand the city-owned Albert B. Sabin Convention Center west over Interstate 75.
The group of business, political and union leaders also directed Cincinnati city staff to begin talks to acquire WCPO-TV Channel 9's property wedged between the convention center and I-75.
Persuading the county to help fund the expansion is critical because a financing plan endorsed by the task force assumes the county will pay just as much as the city: $50.8 million. The task force also must convince county commissioners to pass a countywide hotel-tax increase.
So far, the county has been skeptical of the funding plan and unwilling to participate in the task-force meetings.
Hamilton County Commissioner John Dowlin broke the silence last week when he wrote a letter to Task Force Chairman Dan Meyer, saying it's unfair to ask the county to pay as much as the city because if probably won't benefit as much.
I doubt the rates of return are the same for the suggested equal public funding that has been proposed, Mr. Dowlin wrote. ""I believe that the city and the county investment in such an expansion should have a direct relationship to each equity payout rate of return.
To assure that, Mr. Dowlin said the county plans to hire a University of Cincinnati economist to determine how much tax money the county would get for a convention-center expansion.
Some task-force members urged the county and city to work out a plan or risk losing more lucrative trade shows and business meetings to other Midwest cities. Expansion plans have stalled for a decade.
Let's get on with it, said Robert Wehling, Procter & Gamble's global marketing director. I obviously think we have to put the heat on city and county and get this damn thing done.
But Mr. Meyer said he was encouraged by Mr. Dowlin's letter, written in response to Mr. Meyer's guest column, which was published in the Enquirer on Oct. 4.
The city's consultant, Jim Underwood, compared the economic benefit of an expanded convention center to tossing a pebble in water. Hotels, small shops and restaurants surrounding the West Sixth Street convention center would benefit most while lesser benefits would trickle to businesses located outside downtown.
Mr. Dowlin pointed out that the city's tax coffers would grow faster than the county's because more workers would be needed for the center. That means more earnings tax for the city.
Mr. Meyer recommended that the task force pursue funding in stages. First, the group should lobby Ohio lawmakers to pass legislation by the end of March 2001 allowing a restaurant tax hike.
The group is counting on a 1 percent restaurant tax to raise an estimated $65.8 million total over 30 years, the largest of a dozen financing sources cobbled together by Mr. Luken's task force. The next funding block would be $34.7 million from a countywide hotel tax increase.
The thinking is with more funding secured, it will be easier to convince the county, state and other stakeholders to kick in the rest.
Cincinnati has committed $50.8 million in bonds to pay for the project. A city room-tax increase would raise $17.9 million, but it would take effect only after private businesses contribute $20 million. Delta Air Lines has earmarked another $29.9 million in exchange for naming rights.
Other possible funding sources include:
State funds.
Marketing funds from Kentucky and Indiana.
The amount of extra business generated by convention expansions in St. Louis, Indianapolis and Kansas City has left Cincinnati in the dust. Since 1993, hotel room bookings increased substantially in those cities while Cincinnati's hotel nights declined.
If there is no growth, we die, said Gary Wachs, general manager of the Garfield House Suite Hotel.
'I miss you and I love you, too, son'
Term limits add urgency to next legislative class
Wehrung trial stays in adult court
County to get funding sell job
RAMSEY: Great teachers
Sanity questioned in killing
UC plans degrees in biomedical engineering
Amelia school scene of bomb threat
Anderson Twp. joins peace effort
Baby helps ease dad's grief
Folks at Pioneer Days celebrate the old ways
Kings nears 'effective' ranking
McNUTT: Heart of game
Newport gas work still far from done
Rivals jab over cases lost to time
Save our history, preservationist urges
Seeing the art in life
Their own garden gives Ross students a hand on nature
Two new cases of E. coli infection confirmed
Week aims to cut sex assaults
Woman pleads guilty to reduced charge in theft from animal clinic
Bunning lets needle item go
Court reverses award to inmate
Harvests of corn, soybeans growing
Legislator, woman die in car crash
Pikeville politicians lead money race
Police team triumphs in shuffleboard game
Kentucky News Briefs
Tristate A.M. Report