Convention Center Confusion…

I must be confused about the convention center issues. From what I have been reading and hearing the center has lost money for a long time. I hear and read that the center brings money to businesses when a convention is held there and people spend money at restaurants, hotels, and shopping. My question is why must the city lose money on the deal? Some say the city gains the tax revenue. My proposal is….Sell the center to a private owner/business! Let someone else lose money. Or maybe the city is afraid they private sector will actually make a profit. The city and local businesses won’t be out anything. Why? It is simple….The people who go to the center will still stay in hotels, eat at our restaurants, and by merchandise from our local stores. Wow, what a concept!!! Why must the tax payers lose money on something and drain the general fund when the private sector can run it and the city still reaps the benefits. Something is NOT right here. I have a feeling someone is lining their pockets with tax payer money. An independent audit should be done to track every penny that tax payers put into that center.

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greek1

Let me try to clear some of your confusion. First a little clarification: "Convention Centers" by their nature are not designed to be profit centers for the cities that operate them. They are designed to draw events from outside the community which will cause the organizers, exhibitors and those in attendance to spend money in the surrounding community. "Civic Centers" (like the Phoenix Expo Center) are designed for smaller regional and/or local events. They too benefit the community by the organizers, exhibitors and those in attendance spending money in the surrounding community. But their facilities can not support certain events because of their size limitations. Example: the circus could not use the Phoenix Expo Center because the ceilings are too low. Many centers which are privately owned (like Hammonds in Springdale) use the exhibit space as a loss leader to generate sales of rooms in their hotel. A major mistake was made many years ago when our City leaders, in their infinite widsom, did not enact a proper hospitality tax (which is common around the U.S.). Then when the present Convention Center was completed 11 years ago, again they did not enact a proper hospitality tax because the State of Arkansas was turning back funds for the operation of the Convention Center. They (the Board Of Directors of which have been a number of different people over the years)knew the funding was going to come to an end in June of 2010 and they just "kicked-the-can" down the road so to speak. One of the first issues the present B.O.D.undertook was addressing the Convention Center. An adhoc committee was formed to determine the best course of action. One of the suggestions WAS to sell the Convention Center to a private entity. A few people inquired, but no one felt they could turn a profit. The one percent prepared food tax should have been put in place years ago but I guess it was politically expedient for the elected officials to say, "See how great we are." It will be paid primarily by people who do not live in Fort Smith (not only those who come here for events at the Convention Center but people from Van Buren & Barling, & Greenwood, etc.) Yes, the tax will generate more than necessary to just operate the Convention Center. The extra will be used to expand the Convention Center so it can have a commercial kitchen and be able to support larger events, purchase to old bakery in order to increase parking, and do more marketing of ALL that Fort Smith has to offer (the Convention Center, Phoenix Expo Center, the Fort Smith Event Center, the Marshalls Museum, the National Historic Site, etc) to those who want a place to visit and to groups looking for places to have their meetings and events. Rental rates will also be able to be more flexible to entice groups to use the Convention Center. This controversy has escalated due to a very vocal few who feel it is their duty to protest any type of tax and that is their right; but the present B.O.D. acted in a both legal and responsible manner by passing this by ordinance. All of which is now moot since it will be going to a public vote in November. I can only hope that those who vote will take the time to educate themselves and not just vote against it just because it is a tax. BTW - I am not a government official. I go to work every day and sometimes wonder if we will have enough at the end of the paycheck. But I understand that we need to keep growing and moving forward. Respectfully, jkole

A couple comments

Anonymous your first sentence""Convention Centers" by their nature are not designed to be profit centers for the cities that operate them. If this statement is true the City of Fort Smith has done a bang up job of losing money so I can give then an A+ on losing money. Second sentence "They are designed to draw events from outside the community which will cause the organizers, exhibitors and those in attendance to spend money in the surrounding community." What events are we talking about that they are bring to town? Are we talking about maybe 3 or 4 for major events a year? There needs something going on 75% to 80% of the time.

List FSCC Events

Can anyone please list 12 major FS Convention Center events that bring substantial overnight guests: 1. Battle at the Fort (volleyball) 2. Jehovah's Witness Convention 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

List Events

I will admit that I am not aware of all the events that took place at the Convention Center but off the top of my head here are ten. Each brought in out-of-town guests for multiple days/nights. Battle at the Fort (volleyball) Jehovah's Witness Convention Bridal Fest Contrail Auction Home Show Presidents Elect Training Seminar Arkansas Bandmasters Cattlemen Conference Frontier Trails Robotics Various Gun Shows jkole

Events

jkole can you tell me what the guest numbers were at local hotels were on the dates of the Home Show and the numbers of the weekend before and the weekend after? Lets compare apples to apples.

Events

jkole, Please list the number people that stayed at area hotels/motels on the Bridal Fest, Contrail Auction,etc weekends and list the number of people that stayed the weekend before and the weekend after these events. Think you will see not much difference rooms being rented.

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