A controversial $198 million plan to pay for expansion of Cincinnati's convention center by increasing the countywide hotel-motel tax by 4.5 percentage points will come to a vote todayin the Hamilton County Commission.

        The plan, which requires the city to double its tax from 1.5 percent to 3 percent and kick in $1 million annually for 20 years, has already been approved by City Council. The city's new tax rate takes effect April 1.

        Commissioners have avoided a vote on the issue for two weeks as they considered alternative proposals.

        And there is a new plan, which came out of a meeting between representatives from hotels in the northern suburbs and Mayor Charlie Luken's convention center expansion task force last week.

        That plan, supported by Commissioner John Dowlin, raises the countywide tax only 3 percentage points while requiring the city to raise its tax rate to 4.5 percent and contribute $30 million over 30 years.

        Commissioner Todd Portune, who unveiled the original financing package with Mr. Luken in January, said Mr. Dowlin's plan is unworkable because it assumes a 2 percent growth rate in hotel revenue over the life of the bonds.

        “It's just not a fiscally conservative plan,” Mr. Portune said. “The difference is about $38 million, which the city and county would have to come up with from their general funds if the growth rate isn't there.”

        Commissioner Tom Neyer is the swing vote. Mr. Neyer declined to say which way he'll vote, but said there would be a vote.

        “There are a number of reasonable approaches, and I'm confident we'll pick one (today),” Mr. Neyer said. “It could be a really big day for the community.”

        Mr. Dowlin raised questions about whether the city would really kick in the $1 million per year, or contribute that amount only if it's needed. Mayor Luken said Tuesday that the city's contribution is solid.

        “It's a firm commitment,” Mr. Luken said. “In fact, if for any reason this thing comes in under budget, that money can be used to reduce the tax.”

        Meanwhile, the state legislature began considering a law that would allow the county to raise its tax more than 3 percentage points and apply that money to the Albert B. Sabin Convention Center.

        Michel Sheer, president of the Greater Cincinnati Hotel-Motel Association, told a House committee that a 1 percent growth rate has been set as the benchmark.

        “There's only one plan that both the county and city financial guys have said can be moved forward,” Mr. Sheer said. “That's the whole thing in a nutshell.”

       E-mail dklepal@enquirer.com
       

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