Tuesday, September 24, 2002
Convention center plan worries commissioners
By Dan Klepal, dklepal@enquirer.com
The Cincinnati Enquirer
Hamilton County commissioners on Monday said they were uncomfortable with portions of a $160 million plan to expand and renovate the city-owned Albert B. Sabin Cincinnati Convention Center.
For the expansion to happen, commissioners must raise the countywide hotel tax from 3 percent to 6.5 percent. They have only until Sept. 30 to make the decision, according to special state legislation allowing the taxes to be raised.
As part of the plan devised by the city, county officials are being asked to split a guarantee of $115 million in debt payments with Cincinnati. The guarantee would mean that the county would have to make those payments out of its general fund if the higher tax does not bring in enough revenue to pay off the debt. The city also wants the county to contribute $500,000 per year for 30 years.
Commissioner Tom Neyer asked city officials why the county is being asked to guarantee half the debt. I continue to have heartburn over the guarantee, Mr. Neyer said.
There is risk in this project, said Tim Riordan, acting deputy city manager. If we didn't do that, we probably couldn't even issue the bonds. There needs to be deep pockets to guarantee this, and we think that should be a shared risk.
There also is little enthusiasm on the commission to spend $500,000 per year on the project out of the county's general fund.
Commissioner John Dowlin said the money would be hard to come up with in a tight budget year. He also questioned why corporations are contributing $10 million instead of the $16 million initially promised. Mr. Dowlin also said the anticipated $20 million from the state isn't even on the radar screen.
These are serious, serious questions that need to be answered, he said.
Commissioner Todd Portune said he feels uncomfortable voting for a higher tax when there are still funding gaps in the expansion plan. So far $10 million in naming rights, $20 million from the state, the $500,000 contribution from the county and the $10 million from the corporate community have not materialized about 40 percent of the financial package.
I don't know how you get around those issues before Sept. 30, Mr. Portune said.
Sharonville Mayor Virgil Lovitt, who has acted as a spokesman for the interests of suburban hotels, asked how an expanded convention center downtown can be such a high priority in a county that has severe flooding problems and must spend billions to stop sewers from spilling into waterways. Northern hotels are concerned that a higher bed tax will cause visitors to bypass their properties in favor of hotels with lower taxes to the north.
Northern hoteliers also say they won't receive any benefit from an expanded convention center because they are too far away from downtown. The higher tax rate on northern properties will bring in about 52 percent of the money needed for the expansion.
Go down to Delhi and tell people there that this is the county's top priority, Mr. Lovitt said. The fact that this expansion has loomed out of the fire and is now attacking the county's general fund is a dangerous issue. That will affect everyone in the county, whether it's with sewers or road projects or the sheriff's office. It's just mind-boggling.
Mr. Lovitt said the Cincinnati Business Committee is behind the expansion, and their influence is very long indeed. The CBC consists of the area's top corporations.
The city has pledged to raise its bed tax from 3 percent to 4 percent, but cannot act until after commissioners do. If the county doesn't vote Wednesday, commissioners will have to vote at their staff meeting Sept. 30, which would require the city to call a special council meeting.
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