From ‘word on the street’, here is some local commentary assuming the Pennsylvania Dutch Convention and Visitors Bureau (PDCVB) pulls its support for the Martin Plan:
It does not really matter. The PDCVB is not currently getting its 20% of the hotel room sales tax. Its part of the plan was to forego its 20% (of the bed tax) for 5 years either way. While it has some set of numbers that claim they might get it back, it is highly unlikely that they would ever see that 20%, on a regular and consistent basis, ever again.
If the Martin Plan does move forward and resolves things for the short-term, it is reasonable to expect that the PDCVB will make an immediate push to raise the excise tax to replace the $1 million it lost in the bed tax.
But if the Martin Plan now fails because PDCVB has pulled its support and the County partial convention center bond guarantee comes into play, it is highly likely that Commissioner Scott Martin would then move to raise the bed tax portion of the hotel room sales tax. If that happened, the PDCVB would be far less likely to then get an increase in the excise tax portion of the hotel room sales tax.
So does the PDC VB new position shoot itself in the foot?
What Wells-Fargo, the convention center bond holder, really wants is the full county guarantee. After that, they could care less who pays for what. They will now be able to collect in full.
And from the point of view of Penn Square Partners, the county will now be much further committed to pay for the maintenance and continuation of the convention center… a tax payer bail out of the convention center and, indirectly, PSP which leases and is equitable owner of the adjoining Marriott.
It would not be surprising if Mayor Rick Gray pulls out the City next in hopes of forcing the Commissioners hands to what he and PSP want, the hotels and county to pay the entire cost now and forever.
BOTTOM LINE: Another big victory for the Lancaster Newspapers, Inc. and Dale High at City and County tax payers expense.
Article up on LNP, link below. I’m glad somebody is standing up.
Way back when, Fulton Bank dropped out of PSP. I don’t know their motive, but I’m thinking they should receive some recognition for excusing themselves from PSP.
http://lancasteronline.com/news/local/pa-dutch-visitors-bureau-rejects-martin-plan-for-convention-center/article_d588028e-fbcb-11e3-bb9b-001a4bcf6878.html
EDITOR: For one thing, NewsLanc’s publisher advised Fulton’s then CEO that they were jeopardizing its Pennsylvania banking license by participating in the partnership due to unsavory and possibly illegal activities. He submitted evidence.
We are not aware of Fulton thereafter having invested further funds in the venture. It sold out as soon as the project was underway.
The episode is covered in NewsLanc’s series of articles on the Convention Ceneter whch is posted on our home page.
Lancaster County taxpayers should NOT be held responsible to guaranteeing ANYTHING more than we are already being held hostage to. LET THIS THING DIE…….we’re on the hook for 20 million now (which is WAY TOO MUCH!!), rather than the entire amount.
Whatever happened to all the early proponents……their silence is deafening!!!!!
It appears the tourist bureau was FOR it, before they were against it, before the were FOR it again. Is John Kerry on thier board?
EDITOR: According to LancasterOnLine, they may again be for it when they take another vote this Thursday morning. We hope so.
Finally some straight talk about the CC Project:
Don Ranck, treasurer/secretary of the Bureau’s board, said he was one of four votes against the collaboration agreement when it fell 4-2 Tuesday, and he hopes it is defeated again Thursday.
The convention center is “nothing but a sponge to soak up tax money,” Ranck said.
What took them so long?
The horse is already out of the barn, where has the PDCVB been for 15 years?
Ranck is right but way, way, way late to the party…imagine if the PDCVB had provided some support to the hoteliers or to Henderson & Shellenberger?
EDITOR: The hoteliers were out spoken in their opposition to the Hotel Room Sales Tax and the convention center/ Marriott project. They called it for what it turned out to be. Of course, they knew because it was their industry. Dale High is a hotelier and he likely also knew.