City staff pitch $300,000 hotel‑motel tax grant to shore up Keller Convention Center

City staff Presented Ordinance No. 62‑025 proposing a $300,000 grant from hotel‑motel tax revenues to fund interior improvements at the Keller Convention Center.

Director Hall told the council the package would allocate about $150,000 for a new sound system (including screens and audio projectors), $100,000 for replacement chairs and $50,000 as a reimbursement toward carpeting that is part of a larger $83,000–$90,000 carpet project. Under the recommended approach, the convention center would purchase the equipment and be reimbursed; ownership of the chairs and sound system would transfer to the city, which would then lease those items back to the convention center.

Staff said the improvements respond to direct requests from event coordinators and are intended to keep multi‑day conventions in Effingham, maintaining hotel occupancy and associated sales tax revenue. Hall and other staff emphasized that losing regular conventions would reduce hotel/motel tax receipts and retail sales tied to those events.

The council discussed whether private owners or landlords should have funded interior repairs earlier; several council members said the convention center is an economic engine that warrants public support. Staff noted a condition: if the facility ceases to operate as a convention center during a 10‑year period, it would be required to repay the $300,000 to the city.

No final vote on the grant occurred tonight. Staff said the item will return for formal approval at a subsequent meeting after any editing and prior to final placement on the OVA.