If the convention center were a business, it would be reporting that during 2010 it lost $1,400,000 on revenue of $1,300,000, with operating costs the total of both. The tragedy is that taxpayer dollars seem to be considered somehow different than business dollars.
Meanwhile, the Penn Square Partners keep their revenue figures a closely-guarded secret, even though they are operating rent-free in a taxpayer-owned building. They are paying down a $24 million construction bond for their building, in addition to their initial $11 million “equity” investment to furnish and equip the hotel. The total cost of the hotel building was in excess of $76 million, with taxpayers funding the balance.
That’s not all.
Adding insult to injury, the hotel receives ALL revenue from the third and fourth floor ballroom and meeting rooms, even though these spaces were built and are being maintained by taxpayers. Many events have already been held in the “convention center” where the organizers and attendees had no idea that their money was going directly to the Penn Square Partners.
But wait, there’s more!
100% of the hotel’s kitchen was built and is being maintained by taxpayers, as is the connection between the parking garage and the hotel lobby, half of the hotel lobby (including the piano!), and portions of Interstate Hotels and Resorts’ offices. The public also has total responsibility for both the Queen Street lobby and the Vine Street lobby.
All of these – and much, much more – are a part of the agreements negotiated by Stevens & Lee with the Penn Square Partners on behalf of the Lancaster County Convention Center Authority (taxpayers).
