Recently I inserted a question in our weekly email referring to an article written in the August issue of C.E.O magazine about the lack of hotel space in downtown Columbus. Having a strong interest in the progress and continued growth in Franklin County, this article sparked some additional thought.
In the article Mayor Coleman shared that in 2008 Columbus lost the opportunity to host the Republican National Convention due to the lack of hotel rooms available in walking distance to the Convention Center. Columbus, Franklin County, the Franklin County Convention Facilities Authority (FCCFA) and Experience Columbus announced plans to build a publicly financed, $160 million, 500-room hotel adjacent to the convention center. “
Having lived in several other cities, I agree that in order to stay competitive in the convention business we must have a additional hotel rooms near the convention center ideally within a one mile radius. The OFA (formerly the Ohio Florists Association), which holds its convention in Columbus each year brings 10,000 people to Columbus every July. "The number one complaint is that they are staying all over the place, not just around the convention center. And what hurts out customers, hurts us," says the association's interim DEO, Jim Broderick. Competition is steep. Larger national and regional conventions will continue to pass up by. A proactive approach to adding "heads in beds" here in downtown Columbus makes good sense. Revenue from the city's "bed tax" of 10 % paid by guests at the new hotel makes for great revenue.
After years of offering developers tax abatement's and other incentives with no takers, it was clear another alternative had to be found. Currently 90% of the of the business that turns our community down and states the number one reason for not coming here is due to our hotel mix or package. To further cement the need for additional beds, a consultant confirmed late in 2006 the need for more rooms near the Convention Center.
It seems like the perfect storm.
"With the financial gap being so large, it's difficult to put that kind of financing structure together," says Bill Jennison, executive director of the FCCFA. We all know consultants don't pay for hotels or build them, nor do real estate investors. "The only way to bridge the gap was go through public financing route," said Jennison.
Economic development is very complex process and results are often not seen immediately but often years down the road. Our city and county officials as well as the Franklin County Convention Facilities Authority & Experience Columbus are confident this is the best plan for the current sustainability and the future growth of Columbus. We as public tax payers now have some skin in the game.
This is a unique opportunity and a good time to be involved in decisions that affect our city. If you need additional information please feel free to contact us here at the Upper Arlington Area Chamber of Commerce 614-481-5710 or Experience Columbus @ ww.experiencecolumbus.com.
Becky Hajost
Monday, August 24, 2009
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