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Hotel-motel revenue down; Legends Global details capital needs and deferred repairs at Huntington and Glass City centers
Summary
Grants compliance staff reported a projected shortfall in hotel-motel (occupancy) tax receipts and Legends Global presented a list of deferred capital repairs at the Huntington Center and Glass City Center. Presenters said occupancy and related receipts are down and that the fund carries both short-term and long-term debt obligations.
Grants compliance manager Elena Tyrell told the commissioners the county's hotel-motel (occupancy) tax supports the Glass City Center, the Huntington Center, Destination Toledo marketing, and arena debt obligations. She reported occupancy was down approximately 8 percent from recent figures and projected hotel-motel receipts of about $7.7 million for the year versus $8 million the prior year, producing an approximate outflow of $9.4 million and a near-term deficit that may draw on the fund balance.
Tyrell said four debt structures exist for arena obligations; two are payable by 2032 and two extend to 2040. "If we remain flat for the next five years, that will eat up the entire deficit," she said, adding the reserve presently stands near $7 million.
Steve Miller of Legends Global, which manages the Huntington Center and Glass City Center, reviewed operating and capital needs. He listed deferred or upcoming capital items: an escalator modernization and an elevator replacement at the convention center, HVAC repairs and glycol leaks, replacement of house drape (fire-treatment required), a 20-year-old forklift replacement, spotlight bulbs at the arena, a new basketball floor, exterior stone and limestone cleaning and repair, badge-access and security upgrades, and mass-casualty kits.
Miller said the convention center historically operates at a planned loss as an economic engine that helps drive hotel and sales tax revenue; the Huntington Center has a smaller operating gap that depends on routing concerts and events. He also said some capital items are deferred and will require significant funding when scheduled.
Commissioners discussed revenue opportunities and noted increased competition from short-term rentals (Airbnb/VRBO) that do not always remit lodging tax in a uniform way; staff said they are exploring vendor data to identify short-term rentals and determine potential revenue and administrative costs to collect tax from those units.
No final funding decision was made during the hearing; commissioners and Legends agreed to continue exploring revenue and cost-management options.
