Convention Center ad hoc group to work on report

Members of an ad hoc committee tasked to review funding options for the Fort Smith Convention Center agreed Thursday that they are ready to begin work on preparing a report of recommendations for the Fort Smith Board of Directors.

The committee was formed by the board of directors after the board spent more than 18 months trying to come up with a solution to plug an up to $1 million annual deficit when a state turnback program ends in June 2010. The city has received about $1.8 million a year from the tourism turnback fund, but the city will receive only $888,723 in 2010.

Members of the ad hoc committee are:
Tom Caldarera, restaurant owner
George McGill, businessman/insurance
Kevin Moran, Sparks Health System
Lavon Morton, Arkansas Best Corp.
George Moschner, Baldor Electric Co.
Craig Rivaldo, Arvest Bank
Ben Shipley, attorney

The committee first met April 22 and have reviewed several options, including a 1% hospitality tax, finding cuts in the city’s roughly $40 million operating budget, reallocating a portion of the city’s 1% street tax, re-instituting a business license fee and finding a 3rd party operator. The legalities of merging the convention center operations and the Fort Smith Advertising and Promotion Commission also have been discussed.

An informal consensus expressed Thursday was that there is no fiscal room in the city’s operating budget to absorb up to $1.1 million in convention center expenses. Also, a consensus formed against recommending a 3rd party operator. Not only would a 3rd party operator not allow the city to avoid some large expenses — utilities, capital expenses — but would negate a promise that opened the convention center to be serviced by all possible vendors (area restaurants, party equipment companies, sign companies, etc.).

Committee Chairman George Moschner said the 3rd party operator would get to use the facility and likely leave the city with a “considerable expense.”

A 3rd party operator might also void previous facility-use agreements made by the city with the University of Arkansas at Fort Smith, Fort Smith Symphony and other area organizations and charities.

“We owe an allegiance to the people who stuck with us on this project from day one. We need to honor that,” said George McGill.

The committee is expected to meet May 26 and June 2 to work on drafting and approving its report. Both meetings will be held at Noon, in the Green Room of the Fort Smith Convention Center.