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Dispute not expected to slow convention center
Tuesday, December 01, 1998 By Tom Barnes, Post-Gazette Staff Writer
The ongoing deadlock over stadium funding shouldn't be allowed to slow down site acquisition and other work needed to expand the David L. Lawrence Convention Center, say backers of the third and often-overlooked element of the "Plan B" economic development financing formula.
"The convention center project should absolutely not be delayed because of the dispute over stadium funds," state Sen. Jack Wagner, D-Beechview, a longtime supporter of enlarging the Downtown center, said yesterday.
The senator was referring to the ongoing controversy in the Capitol over whether the state will contribute its share to the local and private money intended for building new stadiums for the Pirates and Steelers.
He said the nearly $150 million pledged by Gov. Ridge to pay about half the cost of the convention center work has already gone through the appropriate state procedures.
"It's in the state capital budget," he said. "There are enough dollars in the capital budget to permit it. As the convention center project needs funding, I am sure the governor will release portions of it."
Wagner called the convention center expansion "the strongest part of Plan B, and I think the public understands that."
He said it would benefit the city and region by adding one or more Downtown hotels, along with the construction and permanent jobs that come with it, plus bringing in more convention-goers and increasing business for airlines, cabs, restaurants and local stores.
"We can move on the convention center (expansion) now," said county Commissioner Mike Dawida.
State Rep. Don Walko, D-North Side, agreed.
"The governor's veto of the stadium funds shouldn't hurt the convention center work," he said. "It's separate from the stadium issue. The convention center work could have been started last year, when the hotel tax was increased."
The Legislature increased the tax on Allegheny County hotel and motel rooms to 7 percent, from 5 percent, effective September 1997. On a full-year basis, it is expected to raise at least $14 million.
Joseph Kane, general manager of the Doubletree Hotel Pittsburgh and head of the Convention Center Design Commission, has said the funds are coming in slightly ahead of expectations. Kane couldn't be reached yesterday but had said last week that he thought the convention center expansion should be able to proceed independently of construction of the two proposed Pittsburgh sports stadiums.
The construction cost of the expanded center has been put at $213 million. But with related land acquisition across 10th Street, plus demolition of several existing buildings, environmental work, architectural fees and interest costs on borrowings, the total project cost is expected to be $267 million to $300 million, Kane said.
Wagner yesterday called for the site preparation work "to move forward as quickly as possible." The expansion will be bound on the west by Garrison Way, on the south by French Way, on the north by Fort Duquesne Boulevard and on the east by the existing center.
Kane's design panel is now considering four architectural firms as finalists to design the expansion. A choice is to be made in February or March. Site preparation is to begin by summer or fall, with actual construction possible by late 1999 or early 2000.
The new building, with nearly triple the exhibit space, more meeting rooms, a new ballroom, more parking and loading docks, is to be open by early 2002.
Ridge earlier this year pledged nearly $150 million in state aid for the project, with an equal amount to be raised locally.
Setting aside $8 million annually in hotel tax funds -- from the $14 million total -- would finance a bond issue of $100 million to $120 million, officials have estimated. They had planned to use $2 million to $3 million from the county's sales tax revenue to increase the bond issue to $150 million. That would comprise the local share of the convention center work.
The sales tax revenue is administered by the Regional Asset District. But with the delay in getting state funds to implement Plan B, there will be a delay in getting the RAD board to release its funds, which are contingent on receipt of the state funds.
Kane said he is studying whether the hotel tax might raise enough money to pay for the entire amount of local funding needed for the expansion project.
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