Lake County
Convention facility may be good idea, but cost a large concern
The Lake County Council is open to the idea of a new convention center in the area but wants to know two things: Who is paying for it and where it is going?
The Lake County Council on Tuesday heard a presentation about the potential to build a new convention center in Lake County, with representatives from the Northwest Indiana Regional Development Authority and South Shore Convention and Visitors Authority asking the group to consider collecting proposals for the facility.
Speros Batistatos, president and CEO of the South Shore Convention and Visitors Authority, said he’s asking the council to keep an open mind and listen to proposals and options that might be available.
“We’re here to ask you to keep an open mind,” Batistatos said.
It is important to send a signal to developers that the county wants to hear their ideas, Batistatos said, and to not stunt the process before it starts moving.
In 2016, the Lake County Council passed a resolution asking the RDA to do a feasibility study for a new convention center after the announcement that the Radisson Hotel and Convention Center and Star Plaza Theatre in Merrillville would be torn down.
A convention center could cost about $60 million, according to Bill Krueger, principal with CSL International, which put together the feasibility study.
The facility would have an annual operation cost of roughly $400,000, Krueger said.
“If it’s about a
The study said an estimate from the Indiana Legislative Services Agency showed that a 1 percent food and beverage tax could yield $9.4 million in revenue during 2019 and $9.8 million in 2020.
The study said those estimates predict that the tax revenue would cover a $3.37 million annual bond payment for a $50 million project and leave $6.47 million for the county or other local municipalities.
Bill Hanna, president and CEO of the Northwest Indiana Regional Development Authority, said the plan presented a number of funding options, but those can be considered when a development is being considered.
“There’s a lot of different funding options,” said Councilman Ted Bilski, D-Hobart.
The county could float a bond to cover the construction, Bilski said, but the taxpayers would carry the bulk of that financial burden.
Bilski said a food and beverage tax would be not just on Lake County residents but people visiting the area.
A 1 percent food and beverage tax would be 30 cents on a $30 meal, Bilski said.
Bilski said before discussing the financing, the council should figure out if it wants a convention center.
“We have to make that decision first,” Bilski said.
From an economic development perspective, Hanna said a convention center would be a driver for Lake County. He said a convention center could generate upward of $200 million in new investment, with 70 percent of that coming from the private sector.
Councilwoman Elsie Franklin, D-Gary, said she will not support a project that includes a new tax on residents to pay for the construction.
“I won’t do that,” Franklin said. “They’re taxed to death.”
Councilman Jamal Washington said the council agrees that a convention center would be a good idea, but it might not be financially feasible.
“No one’s talking about can we even afford it,” Washington said.
Bilski said he wants to see Lake County grow and give young people a reason to stay in the area.
“I think it’s through projects like this,” Bilski said.
Besides the potential funding, the council had questions about what the most suitable location would be.
“There’s five sites that rise to the top,” Krueger said.
Franklin said many of the potential sites are in the southern portion of the county, but she thinks it needs to be in a city setting.
Krueger said the study reviewed a number of potential sites across the county.
A major flaw for many sites was the lack of land available, Krueger said, and the access to hotels.
The convention center will need an adjacent 225-room full-service hotel; 400 other rooms within walking distance; and 700 hotel rooms in the immediate area, according to Krueger.
He said the sites also must be near restaurants and shopping, so conference attendees have places to go.
Hobart Mayor Brian Snedecor said he realizes building a new convention center looks like a big challenge, but he wants the chance to put together a proposal.
“Give us all an opportunity,” Snedecor said.
Councilwoman Christine Cid, D-East Chicago, said she’s seen convention centers that have empty malls nearby. Many companies and groups are moving to online training, Cid said, and not booking conference centers for that function.
“I’m still not even sold on the need,” Cid said.
Cid said the study shows that potential exists for the convention center not being self-sustaining.
“The taxpayers would take a loss,” Cid said.
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