Lancaster First
Lancaster, Pennsylvania

The "Smoking Gun"

How does a 61,000 square foot convention center (according to the Lancaster New Era of August 19, 1999) planned as a "public-private partnership" turn into a taxpayer-owned facility of 183,917 square feet PLUS 66,745 square feet of "shared space" (with Penn Square Partners) according to the Lancaster County Convention Center Authority's Web site?

A document released by the Penn Square Partners on March 28, 2003 clearly provides important clues as to why. CLICK HERE to read the original document.

Distributed among a number of diversions and excuses are a few interesting tidbits:

  • "Architects for the Lancaster Marriott and Lancaster Convention Center project developed their initial program plans around a number of design constraints, many of them driven by requirements of various public sector incentives upon which the private sector relied. These included the need to locate the exhibit hall, meeting rooms, and ballrooms of the convention center facilities within the "footprint" of the convention center itself; retaining the facade and major portions of the historic Watt & Shand Building; PSP's intention to apply for historic tax credits and Tax Increment Financing (TIF) support; and the need to build in and around existing historic structures valued by the community."

    Later in the same document, the Penn Square Partners make an important admission:

  • "Further, PSP cannot qualify for historic tax credits and recent Pennsylvania Court decisions regarding Tax Increment Financing and prevailing wages make the costs of accepting this incentive higher than its potential value."

    As a result, Penn Square Partners planned to submit a new proposal to the LCCCA board:

  • "The revised plan best meets the requirements of both the hotel and the convention center in a more efficient "package" at the budgeted cost. The design changes would be transparent to a visitor to the hotel or to the convention center. The historic facade of the Watt & Shand Building still would be rescued and important historic properties still would be incorporated into the design of the convention center. The "look and feel" of the design still would be sensitive to its historic downtown Lancaster site."

    THIS is the point where it was decided the entire Watt & Shand building would be demolished, EXCEPT for the facade. Together, the above statements prove the ONLY reason that ANY part of the Watt & Shand building was to be saved was so the Penn Square Partners could collect lucrative historic tax credits.

    As for the reference to "efficient"? It is beyond obvious that $170 million (plus interest) cannot possibly be more "efficient" than the $75 million 1999 project. Neither can 250,662 square feet be more efficient than 61,000 square feet.

    Yet it is obvious that even in early 2003, the Penn Square Partners' were looking for ways to reduce their cash investment in the project, while coercing the Lancaster County Convention Center Authority to assume more and more of the Penn Square Partners' responsibilty:

  • "The proposed restructuring would provide the most expedited approach for PSP to proceed with the project, reduce the long-term cost to the public for operating the convention center and transfer ownership of the historic Watt & Shand building from private to public ownership."

    This document proves the Penn Square Partners primary motivation has alway been what is best for the Penn Square Partners, NOT what is best for Lancaster or its taxpayers.
    • updated July 25, 2007 at 10:00 PM

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