NEWPORT — Northern Kentucky business and political leaders are scrambling to win state Senate support for a tax break considered vital to the future of Newport on the Levee.

        Top Northern Kentucky Chamber of Commerce officials joined the judge-executives of Boone, Kenton and Campbell counties in a coordinated regional lobbying effort to keep the tax break for major tourism projects in the state's two-year budget.

        Without the break, it is not clear when or even if Steiner & Associates, the Columbus, Ohio, developer of the Levee, will be able to complete work on the $215 million entertainment, retail and restaurant project on Newport's riverfront.

        While several restaurants, shops, bars and attractions are already operating at the Levee, the tax break will allow the developers to build a 200-room Hilton Garden Hotel and more retail space in the Levee's $30 million second phase.

        “Getting the tax break in the budget is very important because it will allow the project to be completed,” said Newport City Manager Phil Ciafardini, who was also involved in the lobbying effort.

        The opposition came from Senate Republicans, including Senate President Pro Tem Dick Roeding, R-Lakeside Park, who said they would not support any new projects in this year's state budget.

        But supporters of the Levee contend the project is not new, only a continuation of work already started.

        “It's really an unfortunate situation the way this has all come down, because this project really fits into the tax breaks available under the state's Tourism Development Act,” Mr. Ciafardini said.

        Kentucky lawmakers are scheduled to vote on a budget Monday, the last day of the General Assembly's 2002 legislative session. But because of disagreements between Gov. Paul Patton and Senate Republican leaders, the budget may not be passed Monday, likely forcing Mr. Patton to call a special session in late April or in May.

        House Majority Caucus Chairman Jim Callahan, D-Wilder, said regardless of when the budget is passed, he is hopeful the Levee's tax break stays in the spending document.

        “It should be a no-brainer,” said Mr. Callahan, sponsor of the original Tourism Development Act that includes the tax break. “It's a continuation of what has already started down there, and we need to get it going.”

        Steiner is seeking an extension to 6-year-old tourism development legislation that gives developers a tax rebate of 25 cents of every dollar spent on tourist attractions for up to 10 years.

        Steiner has already spent $184 million on the Levee's retail stores and restaurants, the Newport Aquarium, the Firstar 3-D IMAX theater and a movie-theater complex.

        Under the tourism legislation, qualifying projects begin to receive the rebated sales tax three years after beginning construction, meaning Newport on the Levee will receive its first rebate later this year. The payments will then continue for 10 years.

        Without the tax break, the project would not have been possible, city and state officials have said.

        Under the original bill, Steiner had a deadline of last October to have the final phase of the project under construction to be eligible for the tax break.

        But work was delayed after the economy slowed following the Sept. 11 terrorist attacks, Mr. Ciafardini said.

        To keep the project moving forward, Mr. Callahan filed a bill in this year's legislative session to extend the deadline through the year.

        The bill easily passed the House in February, 89-5, but was hung up by Senate Republicans. Because the bill was not voted on in the Senate, Mr. Callahan, a member of the House budget committee, had the legislation's language inserted into the budget.

        To help persuade Senate Republicans to support the break, only available to major tourism developments like the Kentucky Speedway or Newport Aquarium, an intensive lobbying campaign has been under way, accelerating last week as the budget vote loomed.

        Northern Kentucky Chamber of Commerce president Gary Toebben had meetings locally and in Frankfort with key Senate Republicans, including members of GOP leadership, trying to win their support for the tax break.

        Senate leaders negotiating the final budget can remove and delete items, so Mr. Toebben said it is key the tax-break language not be removed.

        “Newport on the Levee is the No.1 tourist attraction in Northern Kentucky,” Mr. Toebben said. “And it has already shown what great potential it has for the future.”

        All three of the region's judge- executives — Boone County's Gary Moore, Campbell County's Steve Pendery and Kenton County's Dick Murgatroyd — have called and written senators, asking for their support.

        “It's a great regional project that affects all of Northern Kentucky,” Mr. Moore said. “The state made an original commitment to the developer on the tax break, and I think the state should keep that commitment.”

        Mr. Pendery said the importance of the project “can not be overestimated.”

        “The Levee is the anchor of all the growth going on in Newport, and as goes the Levee over the next few years so goes economic development in Campbell County,” Mr. Pendery said.

        Sen. Jack Westwood, R-Erlanger, predicted Friday the tax-break language will not be removed by the Senate.

        “The Levee has progressed so well, we don't want to see it stop now,” Mr. Westwood said.

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