Convention center care

Keep a key subsidy to stay in the competition

Given Pittsburgh’s resurgence, it may be surprising to hear that the city has to give below-market rates to groups interested in booking conventions here.

But that, officials say, is the nature of the convention market in Pittsburgh and other big cities around the nation. Competition for these events is stiff, and many would-be hosts, including Pittsburgh, offer discounted rents for use of convention venues.

The issue has come to the fore because of Post-Gazette reporter Mark Belko’s story last Monday that the state is ending the $1.7 million allocation it’s been giving the city annually for the past decade to help cover the difference between revenue and operating costs at the David L. Lawrence Convention Center, Downtown.

The money has come from the state’s gaming revenue. The city is due to get smaller, $1.5 million allocations in each of the next two fiscal years — and then the tap shuts off because the Legislature failed to provide for additional funding when it passed an expanded gaming bill last year.

These subsidies are important; big conventions help the city build cachet, familiarize an untold number of first-time visitors with this remarkable city and provide trickledown business to hotels, shops, restaurants, Uber drivers, the sports teams and Cultural District venues.

The good news is, city officials have two years to tackle the problem, and multiple options are available. The most obvious tack would be persuading the Legislature to reinstate the money. Fortunately for Pittsburgh, House Speaker Mike Turzai, R-Bradford Woods, lives just a short drive up the highway from the city. He is one of the state’s most powerful officials and has the juice to keep the money flowing.

State Sen. Jay Costa, D-Forest Hills, said he was unable last year to persuade legislative leaders to preserve the allocation. But Mr. Turzai should be amenable to the idea. His constituents benefit from Pittsburgh’s growth; just about everyone in the region does in one way or another.

But if Mr. Turzai can’t or won’t help, the city has other paths to explore.

In the scheme of things, $1.7 million isn’t a huge sum to raise. Officials could turn to the foundation community for help or tap the Regional Asset District, which funds cultural and recreational amenities with proceeds from the extra 1 percent sales tax levied on certain Allegheny County purchases. Authority and RAD officials already work together; RAD has given the authority about $14.1 million for costs related to construction of the convention center and the city’s sports venues.

There’s also the possibility of tapping into a new $1.7 million annual allocation the Legislature established last year — through the gaming bill — to create a sports commission to lure big-ticket athletic events to the city. Robbing Peter to pay Paul, however, would make no more sense than legislative budgeting that takes $1.7 million away for one purpose and provides the same sum for something else.

The city needs to continue luring conventions here and work on attracting sporting events, too. Restoring the $1.7 million isn’t much to ask considering the importance of keeping Pittsburgh’s economy moving in the right direction.