Aerial view of the the convention center, looking east. It will be expanded west over the current WCPO property. (Glenn Hartong photo) | ZOOM |

        Cincinnati City Council unanimously approved an increase in the city's hotel tax Monday, clearing the final financial hurdle for the $160 million expansion of the Albert B. Sabin Cincinnati Convention Center ... Make that the Cinergy Center.

        Just two hours before the vote, Cinergy Corp. announced a $12 million, 30-year deal to buy naming rights for the expanded center. Cinergy will pay $3 million a year for four years, beginning in 2003.

        Cinergy's contribution firmed up what officials admitted was a “risky” financing plan and gave the expansion some last-minute momentum after 12 years of debate.

        The commitment is less than the $30 million that Delta Air Lines had committed two years ago, when city officials planned a $325 million expansion. Delta pulled out in August because of poor earnings in the airline industry.

        But with a scaled-down $160 million expansion, the $12 million is worth roughly the same, Mayor Charlie Luken said.

        And more importantly, it's cash at the front end of the project, which means the city won't have to borrow as much. “I'll take $12 million over four years before I'd take $30 million over 30 years anytime,” said Hamilton County Commissioner Tom Neyer Jr.

        The Cinergy money wasn't essential to the plan; the city and county were prepared to move forward without it. But it will give the city some wiggle room if the project exceeds its $145 million estimate. The additional $15 million is for contingencies.

        Cinergy's announcement came, almost literally, out of left field. The deal comes just as the power company's marquee nameplate - the naming rights for the field formerly known as Riverfront Stadium - makes a date with dynamite.

HOTEL TAX SAMPLE

Hamilton County and Cincinnati hotel taxes will increase Dec. 1. Here is a comparison of rates before the tax increase and with Northern Kentucky, where taxes are not increasing. Tax on a $100-a-night room:   • Cincinnati: From $12 to $16.50   • Blue Ash, Forest Park, Harrison, Sharonville, Springdale: From $12 to $15.50   • Green Township: From $11 to $14.50   • Northern Kentucky: Stays at $10.24.   Source: Enquirer research

        The Reds stadium has been known as Cinergy Field since 1996, when the company pledged $6 million over 5 years. Wrecking crews are expected to use explosives to demolish the 32-year-old stadium in December to make way for the Reds' new home, Great American Ball Park.

        Mr. Luken declined to say how long he had been working with Cinergy, or what other bidders he had for the naming rights.

        Mr. Neyer said he wasn't in the loop. “My first reaction was, hallelujah. This takes a good news day and turns it into a great news day,”he said after learning of Cinergy's commitment Monday.

        Cinergy Chairman and CEO James E. Rogers said the timing of the announcement wasn't entirely coincidental.

        “One of the things that was critical to us coming forward was the sense that the city and county were coming together,” Mr. Rogers said. “We wanted to be a part of that momentum.”

        Cinergy's announcement surprised even council members, who met less than two hours later to vote on the expansion. And it swayed an almost certain “no” vote.

        Chris Monzel, an anti-tax Republican, said he could no longer vote against the plan.

        “One of my concerns was that the corporate community wasn't getting behind this,” he said. “And then Cinergy came in and just killed one of my main reasons for not supporting this.”

        City Council also approved borrowing money to buy the WCPO-TV studios from Scripps Howard, a deal worth up to $10.9 million.

        Earlier Monday, Hamilton County Commissioners approved minor revisions to the county's agreement with the city.

        In addition to a 6 percent sales tax and a 4 percent city bed tax (increased Monday from 3 percent), the total tax on a hotel room downtown will rise to 16.5 percent - the third-highest rate in the country behind Houston and San Antonio.

        The tax hike becomes effective Dec. 1.

        Monday was the state deadline to approve the tax increase or lose the authority to do so.

        An 11-member Convention Facilities Authority will collect the taxes and issue bonds to finance the expansion. Under state law, that board will be controlled by members appointed by Hamilton County - a fact that still worries Cincinnati officials.

        City Manager Valerie Lemmie told the mayor and council members that she will personally oversee the construction to ensure it's on time and on budget, and she promised monthly status reports.

        Construction on the expansion will begin in 2004 and be completed in 2006.

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