It is obvious that the predictions made about “hotel tax” revenue before convention center construction began were at best overly optimistic, at worst a fantasy concocted to railroad the project through while it was still possible.
So what will become of the convention center’s nearly $64 million in construction debt?
Thanks to former County Commissioners Paul Thibault and Terry Kauffman, Lancaster County taxpayers have guaranteed $20 million of the convention center construction debt. If the banks were to declare this debt in default (which it technically is already), Lancaster County would be forced to borrow $20 million to pay off its guarantee. This would leave nearly $44 million in debt remaining, which actual “hotel tax” revenues should be able to cover.
Lancaster County property owners would see a slight increase in their real estate taxes to pay off the unexpected $20 million in borrowing, so that the convention center could remain in operation. Conversely, other programs could be cut in order to pay for the additional debt service.
