BALTIMORE (WBFF) — Baltimore leaders are weighing a roughly $1 billion plan to modernize the Baltimore Convention Center, a proposal supporters say is needed because the city has fallen behind other cities in “generating new economic activity.”
A task force of state and local leaders — including Baltimore City State Senator Antonio Hayes and State Delegate Stephanie Smith — is backing the effort.
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The Baltimore Convention and Tourism Redevelopment and Operating Task Force has outlined a recommended funding mix and timeline that could include new taxes to help pay for the project.
One of the options described in the task force report includes a new 3% food and beverage tax in Baltimore City totaling more than $40 million, along with other taxes in the surrounding area. The plan also considers new taxes on bars, hotels and restaurants, as some businesses say they are already struggling.
Local economist Anirban Basu, of Sage Policy Group, said the overall cost is a major concern.
If that budget were half that, I wouldn’t be so concerned. But, it’s a billion dollars,” Basu said.
He said he has long wanted the convention center to be more competitive because “it’s big business visitation,” but added, “This could really work for Baltimore, for retailers, restaurant tours, hotels, of course, and other economic stakeholders. But the other issue, of course, it’s a billion dollars.”
Basu also raised concerns about the state’s financial position and the long-term obligation of financing the project.
“The state is not in a great financial position, and a billion is a big obligation. That’s a lot of bonds, that’s a a lot debt service, and your viewers are right to be skeptical that such an investment would pay off. When the convention center has not been that successful for decades now,” he said.
The proposal is being discussed as downtown Baltimore faces other challenges, including recent business closures in the area. Hotels and restaurants have shut down, including The Cheesecake Factory at the Inner Harbor. The company said it is closing after “extensive review and analysis.”
Crime concerns have also drawn attention, including multiple recent instances of large, unruly crowds of youths, with some incidents resulting in fights, gunfire and street takeovers. At the same time, the city’s numbers have been “trending in the right direction,” with historic lows in homicides and non-fatal shootings.
Basu said perceptions can matter as much as statistics when it comes to attracting conventions.
Whatever the crime statistics indicate, the bigger issue is the reputational issue. If you’re a convention planner, do you really want to send your patrons to Baltimore, Maryland, when you could, say, send them to a Tampa, Florida or some other city that perceived to be considerably safer?” he asked.
Supporters of the plan are pressing ahead with the goal of generating new economic activity, but Basu said the project would need to deliver large returns to justify the price.
“They’ll come. But, when you’re borrowing a billion dollars or financing a billion dollar project, they have to come in humongous numbers. And the question becomes, will they come in humorous numbers?” he said.
Baltimore is not alone in pursuing convention center development. Other cities across the country are also working on new plans, including Houston, which is pursuing a $2 billion project that is expected to produce the biggest ballroom in Texas.
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