Committee advances petition to form Convention District community authority to help finance convention hotel

The Budget Advance Committee of the Cincinnati City Council advanced a petition and a follow-up resolution to establish a Convention District community authority intended to assist in financing a convention center hotel.

City planning and economic-development staff told the committee the authority would be formed by private property owners and tenants in the Convention Center/Fountain Square area and would be authorized to impose a user charge; staff and district representatives said about 29 businesses had voluntarily agreed so far to a proposed 1% charge on food and beverage sales. "They are proposing that they would put a 1% charge in place," Caitlin Feldis of 3CDC said, "that would then go to support the goals of those members, including development of the convention center hotel." Mark Von Alman of Community and Economic Development said proceeds would flow into the capital stack for the hotel.

Committee members pressed staff on the authority's powers and limits. A staff representative said the entity would be a narrow financing tool rather than a general redevelopment authority: its primary purpose, as explained to the committee, is to provide a revenue stream that would be pledged to bonds to fund construction of the hotel. "This will be really predetermined as part of the bond issuance ... largely locked up to help support that financing structure," the staff representative said. Council members asked whether the district would cover Fountain Square as well as the Convention District; staff said the petition as filed covers both geographies but additional properties could be added later through separate petitions and council approval.

Council members also asked about governance and duration. Staff said the city's appointments and property-owner appointments would form the new authority's board and that the county would have a representative; appointments would be subject to council approval. On revenue, staff cited a recent projection that the 1% charge could yield "over $1,000,000 annually" toward the project's capital stack. Staff said the anticipated bond term would be roughly 30 years and that the authority would remain for the life of the bonds unless otherwise altered.

Council members repeatedly sought clarity about the authority's discretion. Caitlin Feldis said the authority's actions would be guided by the bond covenants and project documents rather than open-ended fiscal discretion. The committee placed both the petition (item 14) and the legislative resolution to advance to a public hearing (item 15) on for passage. If the petition is accepted, staff told the committee, the ordinance would trigger a public hearing that must be noticed and held within 30–45 days; a subsequent council resolution and appointment process would follow.

Officials who answered questions at the meeting included Mark Von Alman (Community and Economic Development), Caitlin Feldis (3CDC), and Assistant City Manager Webber; council members asking questions included Councilman Jeffries, Council member Parks and others. The petition and resolution were advanced to move the process forward; no final bond authorization or vote on the hotel financing occurred at this meeting.