[Meet Marilyn Hyland] [Issues] [Success Stories] [Endorsements] [News & Articles]
[Ask the Candidate] [Your Support] [Volunteer] [Mailing List] [Email]
[Home]

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:

  • $30 million from Ohio state capital funds.
  • $15 million loan from the state of Ohio.
  • $30 million in bonds to be paid off from an annual city contribution of $2 million from the city's general fund.
  • $49 million in bonds to be paid off from an annual county contribution of $3.2 million from the county's general fund.
  • $10 million from a one-time contribution split somehow between Kentucky and Indiana. Private funding components are:
  • $30 million from the sale of naming rights, in which a corporation pays to have its name on the building.
  • $20 million from local, private companies.
  • $10 million from the Cincinnati Equity Fund, a collaboration of local businesses that helps finance downtown development projects.
  • $18 million in bonds to be paid off from revenues generated by a 1.5 percentage-point increase in the city's hotel - motel tax. That increase is expected to generate $1.2 million annually.
  • $66 million in bonds to be paid off from the revenues generated by a new 1 percent tax on city restaurants. That is expected to generate $4.4 million annually.
  • $35 million in bonds to be paid off from revenues generated from a 1.5 percentage-point increase in the countywide hotel - motel tax. That increase is expected to generate $2.3 million annually.

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

[More Articles]


[Meet Marilyn Hyland] [Issues] [Success Stories] [Endorsements] [News & Articles]
[Ask the Candidate] [Your Support] [Volunteer] [Mailing List] [Email]
[Home]
Paid for by Citizens for Hyland, 7100 Drake Rd, Cincinnati, OH 45243, Tim Hershner,Treasurer.,
(513)284-4192