May 23, 2006

Dear Concerned Residents of Lancaster County and Friends,

The need to revitalize and to promote Lancaster City is an important goal. With support from the public and private sectors, Clipper Magazine Stadium and the Pennsylvania Academy of Music provide examples of what can be done through cooperation and a commitment to action. But, not all potential can be realized. Not all good intentions translate into worthy projects.

We come to the issue yet again of the downtown Convention Center. We are in our 8th year of analyzing, discussing, debating, and reviewing the propose Convention Center and Hotel on the square in center city. Taxpayers in Lancaster County cannot help but ask: Is a Convention Center really worth this much? Is this project worth all the fuss? And, most importantly, is it worth spending tax dollars?

I believe the answer is "No". It is time to move on. As I said nearly a year ago... "After winter, spring will come"... There is a Plan B if the current project ends.

The PKF Consulting study on the likely financial performance of the proposed Center is deeply disturbing. According to PKF, under best possible tax status, the Center will operate with a $2.2-million deficit yearly. Under circumstances that would allow taxation of bonds and real estate, the yearly operating deficit balloons to $4.8-million.

PKF Consulting was hired by the Board of Commissioners to provide an independent analysis. Let me state that PKF consulting is one of the most respected independent hospitality consulting firms in the nation and in fact the world, to provide us with the information needed regarding the feasibility of this project.

A deeper look at PKF study shows weak demand for a convention center in downtown Lancaster. For all of our area's strengths, the attributes that attract tourists and people who relocate here, there seem to be countervailing weaknesses when it comes to attracting conventions. Even if the Convention Center is marketed well, which requires still more dollars that are not budgeted, the PKF study suggests the larger consumer/trade shows will not come to Lancaster. These are the kinds of shows that provide significant venue for the Center and spread money across the community. In plain words, we cannot expect the Convention Center to rescue itself from its operating deficit. Outside revenue will be needed. WHERE WILL THAT MONEY COME FROM?

Reviewing reports of opened bids for the Convention Center construction provides no comfort for taxpayers. I see a projected construction cost that is $24-million over budget. That assumes no change orders as work progresses. That $24-million is 28.6-percent OVER budget. Again, on behalf of County and City taxpayers, I must ask the question - WHERE IS THIS MONEY COMING FROM?

In good conscience, I cannot support placing County taxpayers in a position of ultimate financial responsibility for this Convention Center. We are staring at ballooning construction costs and very serious operating deficits if and when the Center is constructed. I work for the taxpayers of this County who can reasonably ask why undertake a project that grows less attractive and more expensive every day? The County cannot and will not throw the hard earned tax dollars - good money after bad.

Please be assured that as your County Commissioner, I will continue to stay close to this issue and make responsible action on behalf of the taxpayers in Lancaster County and City.

Respectfully,
Dick Shellenberger