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Franklin County Convention Facilities Authority warns of $250M+ facility needs, asks FRAC to protect and grow bed tax
Summary
The CFA presented facility needs at the Greater Columbus Convention Center, Hilton Columbus Downtown and Nationwide Arena, outlined a $400 million arena renovation and said current revenue flows and incentives are not sufficient to sustain competitiveness.
Ken Paul, executive director of the Franklin County Convention Facilities Authority, told the Funding Review Advisory Committee that Columbus’s convention and arena infrastructure needs immediate, sustained reinvestment and asked the committee to "protect and grow the bed tax."
Paul described the CFA as an independent entity operating under the Ohio Revised Code and said the authority manages significant public debt and facilities that underpin the city’s travel economy. He listed assets that include the Greater Columbus Convention Center, the Hilton Columbus Downtown, Nationwide Arena and six parking facilities. Paul said the convention center campus totals about 1.8 million square feet with 447,000 square feet of exhibit space and more than 4,700 adjacent parking spaces.
The CFA said the convention center hosted more than 260 events and roughly 780,000 visitors in 2024, and it is advancing a $100,000,000 capital program but that a recent facilities condition assessment identified needs exceeding $250,000,000. For Nationwide Arena, Paul said the CFA has launched a $400,000,000 renovation plan to modernize a 25‑year‑old building.
Paul explained the current revenue flow: bed tax and hotel revenue first cover debt service, management fees, reserves and capital obligations; only after those obligations are satisfied do residual funds flow into a hotel residual fund, which currently helps repay loan obligations associated with Nationwide Arena. He said the Hilton retains the bed tax it generates for debt purposes (a structure that reduced the percentage of bed tax available to Experience Columbus), and that this practice will also apply to new properties that keep the taxes they generate to cover their own debt.
The CFA highlighted a related shortfall: incentives used to secure high‑impact conventions and sporting events are increasingly necessary and are currently funded through a Business Development Fund (BDF) that is "heavily subsidized by the CFA" and at risk of insolvency. Paul said other destination cities often discount facility charges as a competitive strategy and create incentive pools; he said the current local model requires a sustainable, long‑term solution for incentives.
Paul described steps the CFA is taking: a master plan to explore future facility development and revenue opportunities, continued investment in short‑term maintenance and a work group led by Franklin County to explore alignment between the CFA and Experience Columbus. He also described the CFA’s industry investments, including contributions to Experience Columbus and the Greater Columbus Sports Commission and support for the Short North Special Improvement District (SID). Paul said the CFA has committed $250,000 to sustain a summer crime interdiction program when cuts threatened the initiative, and that the CFA is the largest investor in the proposed Short North New Community Authority model.
When asked about potential funding sources, Paul said the authority will seek a public/private capital stack for arena renovation that could include state resources available under the most recent state budget (he cited formulas that could cover up to roughly 25% of a project), additional CFA debt, and a cash ask of the city and county. Paul said he expects a mix of public and private funding but emphasized the need for new dedicated revenue streams if the CFA is to issue additional debt.
Paul closed by listing five specific asks for the committee’s consideration: protect and grow the bed tax; reinvest in CFA facilities (convention center, Hilton, arena); establish a sustainable solution for the Business Development Fund; expand destination marketing investment (Experience Columbus); and support the CFA’s planning and funding efforts for future projects.
Ending: The CFA framed the facilities and marketing as interdependent priorities and asked the committee to consider structural funding solutions to sustain Columbus’s competitiveness. Paul said alignment with Experience Columbus and a community‑level capital strategy will be necessary to keep facilities world class and maintain visitor demand.
