Committee says new convention center could be as high as $300 million

[thelakelander]

By Alison Trinidad,
The Times-Union

Outlook is growing dark for building a larger convention center downtown.

There isn't enough money to pay for the project, and there are other public projects that also need funding, according to a draft report from the finance committee of a city task force studying the issue.

The committee is scheduled to present its findings at 5:30 p.m. Thursday during a public meeting in the Main Library, 303 N. Laura St.

According to the committee, it would cost between $200 million to $300 million to build a new convention center. It would cost about $250 million to renovate the Prime Osborn Convention Center and build a headquarters hotel nearby, not including the cost to buy land.

Ron Barton, executive director of the Jacksonville Economic Development Commission, told the task force that about $288 million is needed to improve infrastructure downtown, like fixing the riverwalk bulkhead and create more pedestrian-friendly streets. Other initiatives of the JEDC include spurring market-rate housing, retail and entertainment downtown.

Potential sources of funding include the percentage of hotel taxes that is being used to pay off the debt owed on the Prime Osborn. That will be paid off in 2009. The committee estimated that could generate about $45 million to $55 million, if leveraged to issue a bond. Other sources could include a food and beverage tax, an increased local sales surtax or entertainment tax.

"This does not preclude the community from investing in such a structure [a convention center]," the report says. "However, a history of financial shortsightedness has made it difficult to create the kind of downtown needed to support convention business."

The mayor created a task force to determine whether it would be feasible to build a bigger convention center in Jacksonville. Tourism advocates say the Prime Osborn is too small and too far from hotels to attract the number of visitors a city the size of Jacksonville should. The task force is expected to make a recommendation to the mayor by November.

While several sites around downtown were put out as possible locations for a new center last month, specific costs associated with those sites have not yet been determined. A third-party consultant from Minneapolis will present those costs to the task force in September.

alison.trinidad@jacksonville.com,

(904) 359-4268

This story can be found on Jacksonville.com at http://www.jacksonville.com/tu-online/stories/082207/bus_193613010.shtml.

[thelakelander]

Nothing really shocking annouced in this article that wasn't already assumed for a while.  Based on what's rising in other cities, something in the $200 million range for a well laid out new center or renovation should have been expected.  The interesting thing and what really needs to be explored is financing options.  Instead of raising taxes, maybe we need to look at situations where the private sector is heavily involved? 

Any thoughts on this, as opposed to raising taxes?

[thelakelander]

Here's one example of a public/private partnership looking to bring a convention center and hotel to Lancaster, PA

Public-private partnerships bring together the experience and skill of government with the innovation and efficiency of business to produce significant economic development and public service projects for communities.

These partnerships are created through a contractual agreement between a public agency and a for-profit corporation. Through the agreement, the partners share skills and assets to deliver a service or facility for the use of the general public. The partnerships are intended to bring to a project greater efficiency, better access to capital, and increased intellectual resources. They typically result in increased quality at a reasonable cost.

The Lancaster County Convention Center and the Lancaster Marriott at Penn Square

In 2001, a public-private partnership was formed in Lancaster for the purpose of developing, designing, building, and operating a convention center and hotel. The most important regional economic development project in decades, this project is expected to bring new hope, new jobs, and new financial strength to Lancaster City.

The partnership joins:
The Lancaster County Convention Center Authority. In September 1999, the Lancaster County Convention Center Authority was formed and charged with the mission of bringing the best convention center to Lancaster. The Convention Center Authority is directed by a volunteer board, which is appointed by Lancaster County and City governments. The Lancaster County Convention Center Authority’s executive director is David Hixson.
Penn Square Partners. Penn Square Partners comprises general partner Penn Square General Corporation, which is affiliated with High Industries, Inc.; Fulton Bank; and Lancaster Newspapers, Inc. Formed in February 1998, this alliance has been actively involved in furthering public discussion and consensus on the revitalization of downtown.
The partnership agreements between Penn Square Partners and the Lancaster County Convention Center Authority establish performance covenants and carefully protect the interests of the community.

http://www.lccca.com/partners.htm

The convention center is currently under construction.  The project will include a 183,917 square foot convention center and a 13 floor, 300 room Marriott Hotel.  As a part of the project, a nearby historic building will be restored and converted into a multi-level 20,000sf history museum and interpretive/education center.  This $169.7 million dollar complex is expected to open in 2008.

[vicupstate]

Yes, cities like Lancaster PA, can pull off a convention center, but Jacksonville can't.  Par for the course there.     

These 'findings' certainly aren't surprising, since Peyton has been against it from the beginning.  Of course, the Crist Crisis will be the excuse for not doing anything that Peyton doesn't want.   

Everyone knew it was going to cost $200mm to do anything, so why even bother if that was out of the question from the start?  To appease. That's why.

It is good to know that a re-do on the Prime Osborn is just as expensive as building new elsewhere, which is what needs to happen.

Like everything else, we will have to wait for the next mayor to see any progress.