Wednesday, February 20, 2002
Hotels, visitors bureau to talk
Convention tax answer sought
By Dan Klepal
The Cincinnati Enquirer
SHARONVILLE A group representing hotels and motels in northern Hamilton County will meet with the Greater Cincinnati Convention and Visitors Bureau about the proposed financing plan to expand the Albert B. Sabin Cincinnati Convention Center.
The 11 hoteliers will be part of a special committee that formed after Hamilton County Commissioner John Dowlin hosted a discussion on the financing. The committee will begin its meetings early next week.
Mr. Dowlin said he hopes the group will find solutions to concerns over an expansion financing plan put together by Cincinnati Mayor Charlie Luken and commissioner Todd Portune.
The financing plan would double the hotel-motel rates in Cincinnati from 1.5 percent to 3 percent and hike the county rates 4.5 percentage points, to 7.5 percent. Other components include:
$20 million from the city.
$30 million from naming rights.
$16 million from corporations.
$20 million from the state.
Hotels on the county's northern fringes are concerned that the high tax rate will drive customers away.
We are open and willing to listen to people, said Eric H. Kearney, chairman of the visitors bureau. If there's a way to include those ideas in the process, we will do that.
But there isn't much time.
Mr. Portune has drafted a resolution that he will submit to the commission today that would:
Approve the financing plan.
Ask the legislature to grant the county authority to raise the room tax.
Create a board that would manage the new convention center.
Neither Mr. Dowlin nor Tom Neyer, the third commissioner, thinks a vote today is likely. Both say voting in a week or two is more realistic.
We need to decide firmly and quickly what we are going to do, if so how will it be funded, or just stick a fork in it and call it done, Mr. Neyer said.
More than 100 people attended Tuesday's summit. About half represented governmental agencies, the other half hotels or motels. Most who spoke complained that the high tax rate would drive lodgers across county lines.
Shaun Pan, whose family owns three hotels in the county and has been in the business for 21 years, said the city should change its motto: Come to Cincinnati, we just doubled our tax.
We are one of the most expensive cities to travel from and to come to, Mr. Pan said. We are not addressing the right issue.
Mark Schutte, general manager of Red Roof Inn, also signed up for the committee. He said raising the tax is a decision the city and county have to get right.
It looks like this is going to get rammed down our throats, Mr. Schutte said. Let's make sure we're exploring all the possibilities.
Mr. Portune said what spoke loudest at the meeting was what wasn't said.
I didn't hear any other suggestions, Mr. Portune said. If there is another solution, I'd like to hear it.
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