What's Going Down(town)

Hotel delay may risk conventions
Grand Wayne unsure new Harrison Square hotel will be done by 2010

“Uncertainty over the downtown Courtyard by Marriott has forced Grand Wayne Center staff to be cautious in touting the project, but it is unlikely to cost the city numerous conventions.

The convention center’s board Wednesday discussed the center’s performance last year and its outlook for 2009 and beyond. Michael Coffeen, Grand Wayne director of sales and marketing, said at least five convention groups hope the new downtown hotel will be built in time for their events in 2010.

While he expects most of those groups to come to Fort Wayne regardless, representatives of at least one won’t sign a contract until they know the new hotel will be there, he said.”

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“Greg Leatherman, city redevelopment director, said the city could cope with a year’s delay, but it would require more public money. The property taxes from the hotel were to help finance the public portions of the development, although it was expected to generate only about $3,300 in taxes the first year.

Bob Lister, Grand Wayne director, said that because his employees don’t know what will happen with the new hotel, they have been cautious in using it as a marketing tool to attract new conventions.

“We’ve been real careful not to promise anything for the spring next year,” he said.”

And on a related note:

Grand Wayne asks county to take over collection of hotel tax
Link (NS)

“Long concerned about a perceived shortfall in revenue generated by the 7 percent tax, the directors of the Grand Wayne Convention Center said Wednesday they have asked Allen County to take over collection and enforcement duties from the state – a change they say could increase revenues by 20 percent.”

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“Allen County is one of only four counties statewide relying on the state to collect the room tax, which helps subsidize the convention center. Other counties that have taken over collection have seen a dramatic increase in revenues, and board members hope the proposed local attempt will have a similar impact. There are about 40 hotels and motels in Allen County.”