Pueblog USa

Thursday, October 18, 2007

Those opposed to 2C on ballot

Some reasons for voting no on question 2C

Those opposed to 2C say:
1 .  A new tax may not be created or any existing tax increased.  The question is, are the vendors fees going to be used in the best possible way. The $8 million financing of the Convention Center includes paying interest only for eleven years.  The Convention Center has operated at deficit from the beginning and is projected to continue to run a deficit.  Puebloans can not afford to waste millions.
2.  Who is going to gain from the Convention Center expansion.  Certainly not the middleclass or poor people.  Primarily, the type of jobs which will be created are those that are needed to support the tourist trade in the lodging and food industries.  These are relatively low paying Jobs without health or any retirement benefits.  It will be the rich getting richer: hotel and restaurant owners, construction companies, etc.
3.  The revenues from both trade shows and conventions have decreased significantly from 2002 up to 2006:  tradeshows 2002-$71,972, 2006-$2,283; Conventions/Conferences 2002-$401,790, 2006-$206,760.  The potential market for the expansion and revenues is important to know.*
4.  The ability to handle tradeshows requires that the facility have sufficient loading docks and capable of distributing electrical power to display booths.  Colorado Springs has these types of facilities and Santa Fe, New Mexico will have one by 2008.  The competition for conventions/tradeshows is extremely fierce.*
5.  There will be little if any economic impact by the expansion on Pueblo.  Most of the money spent by convention visitors goes to the large restaurants, hotels, convenience stores, grocery stores, service stations, department stores, etc. that are owned by large corporations and the profits go to their corporate headquarters.*
*A Brookings Institute report authored by Heyward Sanders, titled, “Space Available: The Realities of Convention Centers as Economic Development Strategy”.  Abbreviated statements from the Executive Summary:  1.  The overall convention marketplace is declining.  2.  Faced with increased competition, many cities spend more money on additional convention amenities, like publicly-financed hotels($1 million plus to new Cambria hotel ) and deep discounts to tradeshow groups and yet they continue to operate at a loss. (See http://www.brookings.edu/metro/pubs/2005011).