Council cool to new tax for convention center
Study suggests a 1 percent food, beverage tax be implemented to help fund the project
Creating a new tax to potentially fund a convention is already getting a cool reception from the Lake County Council.
The Northwest Indiana Regional Development Authority recently released a study on the potential to build a new convention center in the area and suggested that the Lake County Council consider a 1 percent food and beverage tax to help finance the roughly $50 million project.
“I’d love to see a convention center here,” said council member David Hamm, D-Hammond. “I’m personally not in favor of instituting any new taxes.”
If a convention center is a good deal and a moneymaker, Hamm said, a private entity should be interested in the venture and taxpayers shouldn’t have to fund it.
“I don’t see the need in taxing people any more,” Hamm said.
Council member Ted Bilski, D-Hobart, said the council has to review the study, review the potential benefits and see whether the good outweighs the bad.
“Nothing is off the table for me,” Bilski said.
If something brings in jobs, helps grow businesses and helps make Lake County a great place to live, Bilski said that’s a good deal.
“I’m 100 percent in favor of that,” Bilski said.
Bilski said there are more questions than answers about how a convention center project could move forward, including the costs, the need for it and how it would be supported.
The council should look at all the possible options, Bilski said.
“We can’t be the group that says ‘no’ to every possibility,” Bilski said.
The study said an estimate from the Indiana Legislative Services Agency showed a 1 percent food and beverage tax could yield $9.4 million in revenue during 2019 and $9.8 million in 2020. The study said those estimates predict that the tax revenue would cover a $3.37 million annual bond payment for a $50 million project and leave $6.47 million for the county or other local municipalities.
“I will not vote to impose any new taxes on this community,” said council member Elsie Franklin, D-Gary.
Many residents of Gary and her district are struggling, Franklin said, and it would be wrong to burden her constituents with a new tax.
“It would be a hard sell for me to accept it,” said council member Dan Dernulc, R-Highland.
Council member Jamal Washington, D-Merrillville, said people have to weigh the pros and cons. He said he thinks it would be good to have a convention center.
“I don’t think the citizens can take another hit at this time,” Washington said.
He said he’d want to hear what his constituents think about the convention center and whether they want to pay for it.
“I’m always open to hear ideas,” Washington said. “The choice to be made is ultimately up to the citizens.”
In 2016, the council passed a resolution asking the RDA to do a feasibility study for a new convention center after the announcement that the Radisson and Star Plaza Theatre in Merrillville would be torn down.
“I’m not opposed to the convention center,” Dernulc said. “It would be very good to have.”
Dernulc said that while the convention center would bring people into the area and have economic benefits, it would hit residents’ pockets hard.
Dernulc said he’d like to see a partnership between private and public groups to fund a convention center.
“I’ll look at anything,” Dernulc said. “Historically, I’ve been against any type of tax.”
Hamm said the council has asked for a presentation on the convention center study during its August meeting.
Council member Eldon Strong, R-Crown Point, said he has no problem with a Lake County convention center, but he does take issue with making the taxpayers pay for it.
“They need private funding, not a tax,” Strong said.
Council member Christine Cid, D-East Chicago, was not available for comment Friday.