(The following was posted on a private list by a contributor in response to a request for an update concerning the finances of the Convention Center.)
I’ve been watching all of this very carefully for the last several years. This has led me to believe the following:
- Additional money will be required to complete the construction of the project. I’m guessing this will be in the $1 million to $3 million range, but we may not know for certain much before the end of 2009. A certain amount of this is because of the unanticipated delays in opening the facility.
- A tax increase (most likely the “hotel tax”) will be required to keep the convention center in operation. I was caught totally off-guard by the repeated delays in the project, since I heard the same promises as the LCCCA board; these delays have most likely accelerated the need for additional revenue to pay for operational losses. But there are other factors: a large number of events are being held in the hotel’s space instead of the convention center, from which the LCCCA receives little or no revenue. And not one single trade show has been booked beyond the current fiscal year; as has been noted many times, conventions are usually booked years in advance.
- A number of significant lawsuits will result from the delays in completing construction of the project, both from contractors and from clients. NO party involved with this project will be immune from this upcoming
litigation, which could drag on for years.
My biggest concern is that the CURRENT LCCCA board could be blamed for these issues. We all know that Art Morris, working closely with R.B. Campbell and Laura Douglas, spent MANY unpaid hours untangling the twisted financial web they inherited from Ted Darcus’ mismanagement; without their tireless efforts, the project would have already experienced a major financial crisis. But the blame for the project’s inevitable shortfalls and weaknesses will most likely fall on the incumbents; after all, would the “private partners” blame the very same board members which rubber-stamped their every wish and desire?
Admittedly much of this is speculation on my part. But all of it is based n my personal observations of the last several years.
