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Convention center officially opens
County rules Marriott Hotel tax-exempt
Intelligencer Journal
Jun 19, 2009 00:56 EST
Lanaster
By DAVE PIDGEON, Staff Writer

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The hotel/convention center on Penn Square opens for business today, a day after dignitaries and developers cut a large Marriott ribbon during an indoor ceremony.

"Well, we're here at last after a long journey," Mark Moosic, general manager of the $177.6 million complex, said during the ceremony.

 

Convention center, hotel unveiled 
Tour convention center, hotel 
Preserving Watt & Shand facade 
Architect on center/hotel design

 

Today's opening marks the start of efforts to operate a successful facility and pay down tens of millions of dollars in debt.

To that end, private developer Penn Square Partners appears to have cleared a major tax hurdle.

Patrick Hopkins, the city's chief financial officer, said Thursday that the Lancaster County Property Assessment Office had deemed the 300-room Marriott Hotel to be exempt from county, city and school property taxes. That's because the building is owned by the Redevelopment Authority of the City of Lancaster and leased back to Penn Square Partners.

The Intelligencer Journal confirmed the hotel's tax status with John Malrides, interim director of the Lancaster County Office of Property Assessment.

Had the property been deemed taxable, Lancaster city government would have been liable for county and school district taxes, but assuming there's no future legal challenge, that appears to no longer be a concern.

The convention center, as a public facility, is not subject to local taxes either.

Penn Square Partners teamed with the Lancaster County Convention Center Authority and the Redevelopment Authority of Lancaster City to construct the 300-room Marriott Hotel and 220,000-square-foot convention center on Penn Square.

Penn Square Partners pledged $11 million in cash up front and $24 million in lease payments to the redevelopment authority during the next 20 years. The other $142 million is public funding of various types. Should developers default on their debt or lease payments, which are worth tens of millions of dollars, local government would assume responsibility.

An enthusiastic 45-minute ceremony was held in the convention center's main lobby before about 300 people. Dignitaries and hotel/convention center leaders, flanked by dozens of staffers dressed in red, white or black uniforms, spoke about the effort over the last decade to spirit the project forward and about its role in the future of Lancaster city's economy.

"No businessman would say that this is the economy that you want to open a business in," Nevin Cooley, president of Penn Square Partners, said about the national economic malaise. "But maybe, just maybe, the fact that we are bringing 200 new jobs to this community in this economy is the exact right time to open this facility."

The audience was composed mainly of elected officials and other community leaders, as well as a horde of media.

Retired state Sen. Gibson E. Armstrong, an advocate for a city convention center since 1985, called Thursday an "emotional" day and said the community will determine the facility's success.

"Because when people come here they're going to have a great time," Armstrong said. "When they walk out that door and they meet someone on the street, it's how that person greets them or talks to them (that will determine) whether they're coming back or not or they'll tell their friends.

"So if you see a conventioneer on the street, thank them for coming."

At one point, a staffer collapsed and needed medical attention. Moosic told the crowd after a five-minute interruption that the unnamed staffer was taken to the hospital and "should be OK."

Thursday's ceremony was the first of two public events. From 11 a.m. to 4 p.m. Sunday, the hotel/convention center will be open for public viewing.

Penn Square Partners consists of general partners Penn Square General Corp., a High Industries affiliate, and Penn Square Ltd. LLC, an affiliate of Lancaster Newspapers Inc., publisher of the Intelligencer Journal, Lancaster New Era and Sunday News.

E-mail: dpidgeon@lnpnews.com


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QUOTE (littledutchboy @ Jun 19 2009, 07:42 AM)
Wasn’t the SDL offered a tax “bone” of something like $150,000 per year? What happen to the “bone”?

It is history.

QUOTE (littledutchboy @ Jun 19 2009, 07:42 AM)
It’s interesting to note that Real Estate taxes that the project would generate was one of the original selling points of this project.

QUOTE (littledutchboy @ Jun 19 2009, 07:42 AM)
We hear every year how much revenue the hotel room tax brings in, why haven’t we heard anything this year, has it fallen that much?

Chris Barrett of the PDCVB announced at the LCCCA PR, Marketing, and Hospitality Committee meeting on June 19th that "hotel tax" revenues have been essentially flat this year over last.
Artie See
Retired state Sen. Gibson E. Armstrong, an advocate for a city convention center since 1985, called Thursday an "emotional" day and said the community will determine the facility's success.

**************************************************************

Maybe LNP will publish a ridiculously stupid quote from Gib Armstrong as a daily feature? Caveat emptor! Gib, who rammed this ill-conceived project down our throats, just told us that we are now responsible for its sucess in spite of the fact that these projects fail in 90+% of the cases nationwide. It certainly wont be his fault.

As for the proerty tax question, I assume that someone can file an appeal. This should be a losing argument for PSP as the case law, specifically a landmark case involving the Philadelhia Parking Authoirty leasing "for-profit" retail space in a municipal garage, suggests that the hotel porttion, "private" and for-profit, should be paying property taxes. I doubt this issue is finally resolved as of yet. As for SDL, I think the LCCCA/RACL/PSP position could best be described as "screw-them". Chalk up a "benefit" to SDL as just another bait-n-switch on this project just like the 4-star hotel designation.
enlightened176
WOW.
hispanic in lancaster
QUOTE (enlightened176 @ Jun 19 2009, 09:08 AM)
Retired state Sen. Gibson E. Armstrong, an advocate for a city convention center since 1985, called Thursday an "emotional" day and said the community will determine the facility's success.

**************************************************************

Maybe LNP will publish a ridiculously stupid quote from Gib Armstrong as a daily feature? Caveat emptor! Gib, who rammed this ill-conceived project down our throats, just told us that we are now responsible for its sucess in spite of the fact that these projects fail in 90+% of the cases nationwide. It certainly wont be his fault.


The robber blames the victim
Nicknack
Wasn't that PSP $11 million in upfront "cash" mostly equity ?
Sweet deal for the Politburo, having unloaded the expense of an empty building onto the City, able to bail out "if" it all goes sour, but, as I understand it, first in line for profits ?
I'll bet Gib has a permanent place on Dale's Christmas list.
Hard to believe this government hands-out is the Lancaster County "Republican Party".
knowntome
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