Convention center near tax pledge

BILL STEWART

VANCOUVER -- Clark County is ready to pledge 97 percent of a $500,000-a-year state sales tax stream for Vancouver's downtown hotel/convention center but wants to keep the door open for fairgrounds projects.

The newly constituted Clark County Public Facilities District, which met for the first time Tuesday, is expected to pledge its share of the hotel/convention center financing Saturday in a joint meeting with its city counterpart and the city's Downtown Redevelopment Authority.

The tax dollars -- $700,000 for the city and $500,000 to the county -- would come from existing sales taxes.

The 1999 Legislature approved diverting 0.033 percent, or 33 cents on a $1,000 purchase, to projects that promote tourism. Those projects must total $10 million, including interest, and construction must start by Jan. 1, 2004.

With an estimated cost of $62 million including bond interest, a combination hotel/convention center across West Sixth Street from Esther Short Park is expected to generate a profit of $1.1 million a year, according to city projections.

Bronson Potter, the deputy prosecutor who is advising the new county public facilities board, said that after expenses such as bond repayments, the county would get half of the remaining money from the center's operation until its tax investment is repaid.

Although the initial diverted sales tax dollars must be spent in a narrowly defined area of tourism, the returning money is under no limits. But the first priority, Potter said, would be to create a county rainy-day reserve fund in case the hotel income slumps.

The 3 percent of taxes not handed over to the city -- about $15,000 initially but expected to rise -- would be enough to get the county's foot in the door for fairground projects.

The new draft fairgrounds master plan, to be unveiled next week, is expected to include a new exhibition hall for trade shows such as boats, camping, gardening and crafts.

Other projects, which Potter said could be incorporated as one project, include an 88-acre community park and competition-level sports complex. The fair association also says it needs to replace most of its old pole-barn buildings.

To get the financial industry's OK for a fairgrounds bond issue, the county would have to pledge to repay the bonds from the general fund, said Bill Barron, county administrator. He said the treasurer's office is looking at such a bond issue. No public vote is required for the hotel bond, where the county has no liability, or for a fairgrounds bond sale.

Returns from the city hotel/convention center are "not secure enough to guarantee a (fairgrounds) bond issue," Barron said. "No bond underwriter will accept the profit from (amphitheater operator) Q Prime" as a guaranteed repayment source.

He advised the new county public facilities board that Saturday's meeting will see the city ask for "a declaration of support, a reality check." The county commissioners do not plan to attend the session.

The county named two members of the new board, and the city added two. Before the four picked a fifth member, Potter cautioned that the board someday might want to raise the hotel/motel tax, and to do that, the facilities panel must include a member from the lodging industry. With that in mind, they selected Brett Wilkerson, general manager of the Heathman Lodge, who expressed interest in serving.

Other members of the new panel are Paul Winters, a self-employed management consultant, chairman; Deborah Abraham, a member of the Vancouver-Clark Parks Advisory Commission, vice chairwoman; Phil Parker, chairman of the Labor Roundtable of Southwest Washington; and Gerald Kolke, a Battle Ground businessman. The board will meet twice a month, from 5 to 7 p.m. the first and third Mondays in the county commissioners' hearing room.

Bill Stewart: 360-896-5722 or 503-294-5900; billstewart@news.oregonian.com