More convention center study angers Mayor Baker

Fort Smith Mayor Ray Baker and George Moschner, the chief financial officer for Fort Smith-based Baldor Electric Co., share a frustration related to the future of the Fort Smith Convention Center.

Moschner recently served as chairman of an ad hoc committee appointed by the Fort Smith board of directors to study future convention center funding options. The seven-person committee was formed 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. (Link here for more details on the convention center funding issue.)

The committee first met April 22 and 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.

On May 26, the committee unanimously endorsed the idea of a 1% hospitality tax (prepared food tax) to fill an up to $1 million funding shortfall related to the Fort Smith Convention Center. The 1% tax would also support the U.S. Marshals Museum and art and entertainment facilities and programs.

When the committee presented its report June 8 to the board, the board gave the committee a tepid response, suggesting the need for more study.

“My parting comment is, ‘Folks, let’s move on with this,’” a frustrated Moschner told The City Wire after the board meeting. “You all (board of directors) have studied this thing for so long that it’s time to move on and make some decisions.”

The city board has held special meetings and discussed the convention center issue for more than 18 months. The board voted 5-2 on Jan. 26 to seek voter approval of a 1% prepared food tax to fix the funding problem. But there has been no movement since the board vote to push a plan to voters.

During the board’s regular Tuesday meeting (June 15), City Administrator Dennis Kelly said a tentative date of June 29 has been set for another board study session on the issue. The board approved the date, but Mayor Baker was clearly upset by talk of another study session. He said there was no reason to appoint a committee to review the issue if the board was not going to follow their recommendations.

“I hope this is the last session. … We need to get on with it,” Baker said.