Convention Center group refines recommendations

Members of the Fort Smith Convention Center ad hoc committee worked Wednesday (June 2) through several refinements to funding recommendations the committee plans to present to the Fort Smith board of directors.

The ad hoc convention center 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 report is expected to be presented to the board during a June 8 study session to begin at Noon in the Community Room of the Fort Smith Public Library.

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.

As part of that endorsement, the committee called for a management merger of the convention center and the Fort Smith Advertising and Promotion Commission. They also said the city needs to focus on public education if it wants to gain approval of efforts to support the convention center and other quality of place projects.

Moschner, committee chairman, requested language be changed in the draft report to note that the committee did not perform a detailed audit of the city budget, but did conduct a broad review if city finances. Moschner said the review was enough to show that there “doesn’t appear to be much leeway” in the city budget to absorb the up to $1 million annual operating deficit of the convention center.

Another point committee members wanted clarified in the report is that the city of Fort Smith and the Fort Smith A&P develop a precise plan on how tax proceeds would be used and improve management oversight of the convention center. The plan should be formalized with a contract, the committee recommends.

Moran said voters need to see “clearly-defined expenditures” related to tourism and convention center operations that would be supported by the hospitality tax.

According to state law, only an A&P can collect and administer hospitality tax proceeds. The Fort Smith A&P now collects a 3% hotel tax.

Other changes to the draft recommendation included:
• Stating more clearly that reallocation of the city’s 1% street tax to support the convention center was not a top recommendation because committee members believed the program has been “too important” and “too successful” to jeopardize;

• Noting that up to 50% of the prepared food tax is a “discretionary” tax, and will be paid by non-Fort Smith residents;

• Adding language that encouraged the board to push for a feasibility study on a wide range of services the convention center staff could engage to raise extra revenue; and,

• Changing language throughout the report to say the convention center benefits the Fort Smith region rather than only the city.