Thursday, January 31, 2002
Neyer leans toward convention-center tax
Commissioner says he still has questions
By Dan Klepal
The Cincinnati Enquirer
Hamilton County Commissioner Tom Neyer said Wednesday he is leaning toward approval of the county's share of a $198 million funding plan to expand the Albert B. Sabin Cincinnati Convention Center.
But Mr. Neyer, the swing vote on the three-member commission, has some questions he wants answered first.
If given approval by the state legislature, county commissioners will vote on whether to raise the countywide hotel/motel tax from 3 percent to 7.5 percent an increase that would generate $7.8 million per year and pay the county's share of the expansion.
Commissioner John Dowlin has said he is opposed to the financing plan, while Commissioner Todd Portune will vote in favor of it.
The county tax increase is coupled with a doubling of Cincinnati's hotel/motel tax, from 1.5 percent to 3 percent, which would raise an additional $1.3 million per year.
Lodgers staying in a city hotel would pay both the city and county tax, making the tax rate 10.5 percent.
Mr. Neyer said he has these questions:
Can the expansion be built for $198 million, and who pays for any overruns?
Who will manage the facility?
What will the new tax structure do to the competitiveness of area hotels?
I think the plan is a big step in the right direction, said Mr. Neyer, a longtime supporter of convention center expansion. I'm just not willing to approve something until I understand who is responsible for what and how it ripples through our budgets.
Tim Riordan, Cincinnati's acting city manager, said management of the facility will be an issue of negotiation with the county. .
Mr. Riordan said he thinks the project's $33 million contingency fund will be more than enough to build it.
We built in a significant contingency into the project so we won't have to come back to the well, Mr. Riordan said.
The Greater Cincinnati Hotel/
Motel Association had not officially endorsed the financing plan as of Wednesday. Association President Michel Sheer said he expects a decision by the end of the week.
It's a big increase and an important one, Mr. Sheer said. We want to ensure it works to the benefit and favor of our members.
Mr. Neyer said he wants to make sure of that, too.
Suburban concerns
About 30 hotel and government officials held a press conference in Sharonville on Tuesday, saying the proposed increase is a bad deal for hotels and motels in the suburbs because it would push customers to Northern Kentucky or Butler and Warren counties.
There are valid questions regarding competitiveness, Mr. Neyer said. The folks in the suburbs raise valid points. I don't think they are insurmountable issues, but there are issues.
Ken Alltucker contributed to this report.
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