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Taxpayers: Ears burning?
Convention boosters eye new levies Cincinnati Enquirer February 26, 1999 by Lucy May
Cincinnati and Hamilton County taxpayers could be asked to cough up nearly $80 million to help finance a proposed expansion of Cincinnati's downtown convention center. In addition, the state could be asked to contribute as much as $45 million in state capital funds and loans to help pay for the project. A preliminary financing plan obtained Thursday by The Cincinnati Enquirer is subject to revision, but it offers the first indication of how proponents of the project may ultimately want to split the cost of the expansion between taxpayers and the private sector. More than doubling the size of the Dr. Albert B. Sabin Convention Center is estimated to cost between $325 million and $350 million. Advocates argue the convention center - unchanged since 1987 - must be expanded to regain the city's competitive position in the lucrative convention industry. But they wouldn't talk about the financing model obtained by The Enquirer. In an interview Thursday, they would say only that the plan is evolving and that they have no intention to seek a general tax increase. "We're not anywhere near the point where everyone's signed off on it," said Michael Wilson, president of the Greater Cincinnati Convention and Visitors Bureau. "To say we're committed to any specific amount is not a fair statement." Taxpayer elements of the preliminary funding plan are:
All those funding sources are $22 million short of $335 million, which is the project cost used in the preliminary plan. State law would have to be changed for some elements of the preliminary funding plan to work. And city council and county commissioners would have to approve various tax increases and funding commitments. The city owns the convention center, and council would have to approve any expansion plans. Already, seven of the city's nine council members have offered enthusiastic endorsements of the expansion. Hamilton County Commission President Tom Neyer Jr. also has endorsed the expansion. And in a videotaped testimonial shown Tuesday, Ohio Senate President Richard Finan, R-Evendale, said the city and county would be wise to take on the expansion. State law would have to be changed to institute the new restaurant tax, according to city officials. Neither the new restaurant tax nor the increase in the city and county's hotel - motel taxes would require voter approval. County Commissioner John Dowlin confirmed he has seen the numbers obtained by The Enquirer, and he has concerns about the contributions the county is being asked to make. "Without consulting with us, somebody has decided we could afford to pay the debt service," Mr. Dowlin said. "I think this is, at best, a nice thing to do as opposed to the core service the county provides." Mr. Dowlin said he is far more concerned with passage of a countywide levy to raise $63.7 million to improve the county's emergency communications system used by police and firefighters. "I think the timing is unfortunate," he said. "The timing hurts the emergency communications issue." A report by consulting firm PriceWaterhouseCoopers recommends expanding the 246,000-square-foot convention center to 640,000 square feet. The report says the massive expansion and renovation would generate $312 million annually in economic benefits for Cincinnati, Hamilton County, Ohio, Northern Kentucky and Kentucky. Copyright 1999 The Cincinnati Enquirer
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