PA Dutch CVB board calls meeting to restore lost funding

 Communication to its members:

Marketing of Lancaster County’s $1.8 billion tourism industry at stakeAt a PA Dutch CVB Board of Directors meeting held earlier yesterday, the board voted unanimously to convene a meeting by the end of November of key community stakeholders for the purpose of finding a funding solution for Lancaster County’s tourism industry.

Earlier this year the CVB’s portion of the hotel room tax (approximately $900,000 annually), which is utilized to market Lancaster County to potential visitors, was diverted to address the debt service of the Lancaster County Convention Center Authority (LCCCA). Though we had developed a healthy financial reserve, that fund will quickly dissipate if restorative action is not taken.

CVB Board Treasurer/Secretary Shane Ackermann pointed out that “Next year alone, we will be pulling nearly $625,000 from our reserve fund in order to continue to market this destination. We’ve also made other deep cuts. There’s simply no fat on the bones that we can trim at this point to make up the $900,000 loss.”

“We are concerned that plans are being considered which,” said Board Chair Rick Stammel, “address the Lancaster County Convention Center Authority’s funding crisis at the expense of the tourism community. We need to be at the table, actively involved in identifying a solution.”

Tourism is a leading industry in Lancaster County, responsible for employing more than 30,000 individuals and generating $327 million of tax revenue for the county and state coffers.

Ackermann underscored that, “Adequate funding is crucial if Lancaster County is to remain a competitive tourism destination. It is imperative,” he emphasized, “that our loss of funding is addressed in the near-term.”

According to Stammel, “We’re very concerned about the passage of time and the lack of a fiscal solution, and recognize that we need to play a much more active role in this process.”

The meeting is intended to include leadership within county and city government, the Redevelopment Authority, Penn Square Partners, the LCCCA, and the CVB.

Also at yesterday’s board meeting, the CVB board voted to withdraw support of Commissioner Martin’s proposal, which calls for the county to continue to direct the 20% in hotel-tax revenues earmarked for the CVB to the LCCCA. Other concessions would also be required of the city, Wells Fargo (the LCCCA’s lender), Penn Square Partners (the private developer of the adjacent Marriott hotel, which shares some convention center facilities), and the LCCCA.

“To be clear, we’re not voting to oppose his plan; however, in order for us to be an effective participant in the development of a plan that will make this CVB whole, we need to go into these conversations in a neutral position,” said Stammel.

Earlier this year, the CVB convened a fact finding committee which ultimately presented a Report on the Fiscal Impact & Recovery of the Lancaster County Convention Center Authority this past June. This community-based effort was created to address the current challenges surrounding the LCCCA bond reserves, and to ensure adequate funding for both the convention center’s long-term viability as well as the restoration of our 20% portion of the hotel room rental tax (HRRT) for comprehensive marketing of Lancaster County.

EDITOR:   It appears the Tourist Bureau has just pulled the carpet out from under Commissioner Scott Martin.  Goes to show that no good deed remains unpunished.