According to the County Treasurer’s office, total receipts from the 5% Room Rental Tax came to $6,487,128, which is $504,497 above collections for 2011.
This is good news for the convention center. However, it means that most of $6.5 million dollars came out of the pockets of county hotel operators, thus seriously depleting their profitability and ability to fund renovations and additions. Also, by upping the total cost of rooms, it discouraged travel to the region.
With few exceptions, there were no benefits from overflow of rooms from the Marriott Hotel which adjoins the convention center. Moreover, much of the convention and show business that previously was situated on Rt. 30 East and so benefited the suburban hotels has now been displaced.
Despite infusion of the extra half million dollars, the convention center project faces multi-million dollar annual deficits were the usual reserve for replacement and renovation set aside.
I sure would like to see a breakdown of the income for the Convention center. How much of the event/space booking income actually goes to the Convention Center and how much is earmarked for Penn Square Partners/Marriott Hotel?