Convention centers vote is delayed

PROVO — Two convention center projects came knocking for a treat of taxes from the County Commission Tuesday, but both projects left with more homework to do and no promises.

Commissioners delayed signing an inter-local agreement with Pleasant Grove for at least another week and vaguely agreed to a resolution in support of moving a Provo convention center project to the next level.

"It's not to the point where we can discuss or vote on either of them," said Commissioner Jerry Grover.

Pleasant Grove representatives hit a snag Tuesday in presenting an updated inter-local agreement that asks for 1 percent of the transient room tax generated by their proposed project to be returned to the city. The city has also requested an additional 1 1/4 percent room tax increase — to be voted on next week by county commissioners — to be applied to the city if it is passed.

The 1 1/4 percent transient room tax increase can be used or attributed by the county to "brick and mortar" building funds for public projects that promote tourism. At issue is whether Pleasant Grove's convention center qualifies to receive the money as a public project.

"We think (the commissioners') concerns are valid," said Pleasant Grove economic development director Richard Bradford. "We just need to go do some homework now and come back with answers."

The city is requesting a portion of the taxes that would be generated by their project to help pay for a $35 million debt the city will incur to purchase land for the project. Pleasant Grove plans to give 37 acres, located near exit 275 on I-15, to John Q. Hammons Hotels and Resorts to build a hotel and convention center.

The debt is expected to be paid over 25 years.

If the city doesn't receive 1 percent of the transient room tax, as well as a potential additional 1 1/4 percent room tax increase, Bradford says the project will fail.

"It would kill the convention center," Bradford said. "We couldn't fund the purchase of the site."

Pleasant Grove's deadline for retrieving their $200,000 land deposit is this weekend. After that, the city has a 30-day extension until another deposit is due. The city then has another 30 days until the purchase must be complete, or the city will have to renegotiate the purchase of the land.

"Once we gain the confidence of the county commissioners and the county attorney, I am very optimistic that the deal will happen within the time frame that we're given," Bradford said.

Provo economic development director Leland Gamette is also optimistic that a "county convention center" will soon be built, with the cooperation of the county, in Provo.