LETTER: $20 million is but the beginning of County “guarantee”

Posted on June 24th, 2009 in News and Commentary

LETTER: $20 million is but the beginning of County “guarantee”

“Yes, Lancaster County is only liable for $20 million of the $64 million in [Convention Center] construction bonds. But that does not tell the whole story.

“If ‘hotel [room sales] tax’ proceeds fall short of the amount needed to make construction bond payments, Lancaster County government is liable to make up the difference. About the only way that would happen is if hotel occupancy would collapse to about half of its current level; since ‘hotel tax’ collections have only slipped a few percentage points during the worst recession in decades, that is not likely to happen.

“*But what about the OPERATION of the convention center?* This is the issue that Craig Lehman has failed to address.

“It is obvious that the operational budget for the convention center is woefully inadequate. It is already clear that the convention center will need to generate more revenue than anticipated by the “pro-forma” estimates to make ends meet. This will be difficult, especially since utilization of the LCCCA’s spaces is booked at not much more than half of pre-opening estimates. And no major trade shows have been booked beyond the spring of 2010.

“Note that the LCCCA does NOT have any taxing authority; only the County Commissioners can raise taxes. Yes, the LCCCA can legally take the share of the ‘hotel tax’ that currently goes to the Pennsylvania Dutch Convention and Visitors Bureau. But would the County Commissioners willingly let the PDCVB lose such a large part of its funding? Especially since the ‘hotel tax’ funds the three full-time PDCVB employees whose job it is to promote the hotel and convention center.

“What will happen when the convention center needs additional funds to pay for its unanticipated operational losses? Would the County Commissioners really allow the convention center to close when it runs out of money?

“*Of course not.*

“Craig Lehman’s promises will quickly be forgotten, ignored, or rationalized when the LCCCA eventually is forced to come begging for more money.

“I challenge anyone to ask Craig Lehman exactly what he will do when the LCCCA needs additional operating subsidies. It will be interesting to see what kind of spin he puts on that answer.”

Share

Leave a Reply

*

More News

Credo

"....I have never made it a consideration whether the subject was popular or unpopular, but whether it was right or wrong; for that which is right will become popular, and that which is wrong, though by mistake it may obtain the cry or fashion of the day, will soon lose the power of delusion, and sink into disesteem." Thomas Paine, Common Sense, on "Financing the War", March 5, 1782

Blog Archives

Categories

Convention Center Series

Convention Center Series Index

Convention Center Series Index

Prologue Chapter One: Genesis Chapter Two: The Dream Team: Penn Square Partners Chapter ...

Convention Center Authority calls for increase in Hotel Room Sales Tax

Kevin R. Molloy, the executive director of the Lancaster County ...

Santa Monica Reporter

HOLIDAY DISAPPOINTMENTS: “Holmes,” “Hugo,” and “Young Adult”

HOLIDAY DISAPPOINTMENTS: “Holmes,” “Hugo,” and “Young Adult”

By Dan Cohen, Santa Monica Reporter "GAMES OF SHADOWS" Any resemblance between ...

Women in jeopardy: three very different thrillers

By Dan Cohen, Santa Monica reporter “The Skin I Live In” When ...

Memoirs

Observations at the top of “Things to do” list

Observations at the top of “Things to do” list

“To be and not to do is not to be ...

Birth rate plummets in Brazil

From the WASHINGTON POST: Fertility rates have dropped in many parts ...

LGH Series

From ‘Soak The Rich’ To ‘Soak The Poor’: Recent Trends In Hospital Pricing

From ‘Soak The Rich’ To ‘Soak The Poor’: Recent Trends In Hospital Pricing

From HEALTH AFFAIRS: FIFTY YEARS AGO the poor and uninsured ...

How Doctors Could Rescue Health Care

By Arnold S. Relman, MD * From THE NEW YORK REVIEW: ...

Penn State/Sandusky

Corbett tries to explain away NewsLanc’s accusations

WJACTV.COM:  Since day one of the Jerry Sandusky investigation Pennsylvania ...

Timeline: Penn State / Sandusky / Corbett

By Bill Keisling Editor's note: Associates of Pennsylvania Governor Tom Corbett ...