Politics Wires

Selling Charlotte: DNC convention business requires millions from taxpayers

 

Charlotte Observer

Unlike a medical convention or a trade show, most SMERF attendees pay their own way.

And most are on tight budgets.

• In estimating what convention attendees spend, the CRVA has routinely made erroneous claims, sometimes contradicting itself.

When Charlotte landed the 2010 National Rifle Association convention – one of the city’s biggest-ever meetings – the CRVA estimated gun enthusiasts would spend $10.3 million.

After the NRA left, the CRVA inexplicably increased that total by 600 percent – adding tens of millions of dollars of spending that was trumpeted to the public.

In other events, the CRVA said some conventions were attended by thousands more people than actually showed. For the recent Shriners convention, the tourism authority overestimated attendance by 40,000 people.

In interviews with the Observer earlier this year, the CRVA’s research department adamantly defended its spending formulas.

Recently, however, the CRVA acknowledged that many of its past spending estimates were erroneous. It is now using a new formula that more realistically reflects visitor spending – and has cut most estimates in half.

“We owe it to the community to be as accurate and as conservative as possible,” said Kimberly Meesters, who became CRVA spokesperson this spring as part of a reorganization by new chief executive Tom Murray. “We plan to take a much more disciplined approach in the future.”

The CRVA, which manages the center, and the city, which owns the building, argue that the center’s economic benefits remain crucial for the growth of Charlotte.

Murray acknowledges that the Convention Center loses money, which is the case in many cities.

“Not all businesses are designed to make a profit,” Murray said. “The real mission is to create economic impact.”

He says he believes it’s a moneymaker for the city. The convention business pays off, he said, in jobs and new tax revenue for the city.

“The wonderful secret is that for every $1 in tourism tax … (it yields) $1.10 in general fund tax,” Murray said.

That’s only true, however, if roughly $25 million of Convention Center expenses are ignored, including nearly $22 million in annual debt payments.

In fact, there is no evidence that the city makes its Convention Center money back in new taxes from visitor spending. The city of Charlotte, Mecklenburg County and the state may make as little as 35 cents for every dollar they spend on the convention business. Convention origins

Cities across the country, including Charlotte, believe convention centers are must-haves, like stadiums or museums. They argue that conventions give their cities nationwide exposure, making it easier to attract businesses.

One of Charlotte’s earliest forays into the convention center business came at the turn of the last century.

A group of eight businessmen built a privately financed civic auditorium at Fifth and College streets and a hotel where the Marriott Center City is now.

But there was a problem: The building lost money, and the original investors were soon in bankruptcy court. The city ultimately bought the building in 1911 and jumped into the convention center business.

Fast forward to the late 1980s, when business leaders, including Hugh McColl, lobbied to build a new publicly financed convention center to replace the old city-owned center at the site of what is now the EpiCentre entertainment complex.

Read more Politics Wires stories from the Miami Herald

  •  

FILE - In this April 26, 2013, file photo police officers stand by as Muslims leave the Islamic Society of Boston mosque in Cambridge, Mass., which was attended occasionally by Tamerlan Tsarnaev for Friday prayers, according to Islamic Society of Boston leaders. Within hours of the blasts at the Boston marathon, government officials and members of Boston’s Muslim community called each other, offering assistance. Representatives from the Justice and Homeland Security departments offered support to Muslim communities in case they suffered backlash or threats, though it would be days before law enforcement connected the suspected bombers to a violent interpretation of Islam.

    Community outreach key to Obama counterterror plan

    Within hours of the Boston Marathon blasts, government officials and Boston Muslims called each other to offer assistance, calls that were the fruits of years of cultivating such relationships in an effort to ultimately prevent the very type of attack Boston experienced April 15.

  •  

FILE - In this March 18, 2013, file photo, Sen. Mazie Hirono, D-Hawaii, holds a hearing in the Senate Judiciary Committee about immigrant women and immigration reform on Capitol Hill in Washington. For all the soothing words she heard from fellow Democrats on the Senate Judiciary Committee, Hirono never had a chance to win a relatively modest change to far-reaching immigration legislation. Instead, the hidden hand of the bipartisan Gang of Eight reached out and rejected her attempt to create an immigration preference for close relatives of citizens with an extreme hardship _ the same force that had already derailed dozens other proposals deemed to violate the delicate trade-offs made by the bill’s bipartisan authors.

    Key senators tightly control immigration debate

    For all the soothing words she heard from fellow Democrats on the Senate Judiciary Committee, Sen. Mazie Hirono of Hawaii never had a chance to win a relatively modest change to far-reaching immigration legislation.

  •  

Defense Secretary Chuck Hagel arrives for a graduation and commissioning ceremony at the U.S. Military Academy, Saturday, May 25, 2013, in West Point, N.Y.

    Hagel: Cadets must stamp out sex assault scourge

    Defense Secretary Chuck Hagel told cadets at the U.S. Military Academy at West Point on Saturday that they must stamp out the scourge of sexual assault in the military.

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category