The LCCCA hasn’t officially loaned money or extended credit to the Historic Preservation Trust, which simply doesn’t have the cash to pay the obligations which were forced upon them years ago by public officials who were trying to close an ever-widening funding gap. The LCCCA simply does not have the ability to force the HPT to pay up; the LCCCA is left with so little cash (because of the agreements which were rubber-stamped by previous LCCCA boards) that it cannot afford to pay the lawyers which would be needed to pursue any legal action against the HPT. (Note that LCCCA operational funds are completely separate from convention center operational funds, which are managed by Interstate Hotels and Resorts – NOT by the LCCCA.)
The PDCVB knows that the County Commissioners would increase the “hotel tax” to 7% (the maximum allowed by State law) in order to restore any funding lost when Wachovia/Wells Fargo (via M&T Bank) claims the PDCVB’s portion to pay for convention center operational losses (they can do this because Wachovia/Wells Fargo holds a lien against the “hotel tax”). The County Commissioners can get away with this because they promised to not provide any additional funds to the convention center, but made NO promises about additional funding for the PDCVB – which would be justified in the name of supporting the tourism industry in Lancaster County.
EDITOR’S NOTE: An increase in hotel room sales tax is a disincentive for groups and tourists to visit Lancaster County. It has the same economic effect as an increase in room rates. Less visitors translates into more unemployment, less sales tax, and higher real estate taxes for everyone else since hotel assessments are indirectly based on the ‘income approach.’
