PRESENTED BY:

LANCASTER COUNTY COMMISSIONER

SCOTT F. MARTIN
May 23, 2014
Lancaster County Convention Center
Funding Plan
Lancaster County Convention Center Funding Plan
The agreement requires seven year participation
from:
City of Lancaster/Redevelopment Authority of the City of
Lancaster/Lancaster City Revitalization and
Improvement Zone Authority
Penn Square Partners
Lancaster County Convention Center Authority
The agreement requires five year participation
from:
Wells Fargo
Pennsylvania Dutch Convention and Visitors Bureau
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
Requirements of the City of Lancaster:
$100,000 annually for seven years
5 Million from the CRIZ for funding FF&E between 2014-2020
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
Requirements of the Lancaster County Convention
Center Authority (LCCCA):
The LCCCA agrees to make payments to support the marketing
of priority 1 and 2 events in the amount of $35,000 in 2014
and $85,000 annually the remaining six years.
The LCCCA agrees to make annual payments to support a
marketing budget of $97,000.
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
Requirements of Penn Square Partners (PSP):
PSP will make annual payments to market priority 1 and 2
events of $100,000.
Annually will forgive $50,000 of LCCCA debt to PSP for a
total number of $700,000.
Agrees to allow LCCCA to provide concession services at the
facility for seven years (valued at $50,000 annually).
Requirements of the Pennsylvania Dutch Convention
and Visitors Bureau (CVB):
Voluntarily agree to allow 100% of the hotel tax revenues to be
directed to the LCCCA for a five year period beginning July 1,
2014 through June 30, 2019.
They acknowledge that if, as of December 31, 2016, and at the
same time each year for the remaining years, the LCCCAs
reserves are at 5.75 million, the PDCVB will be eligible to receive
up to 20% of the hotel tax back.
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
Wells Fargoagrees:
TogivetheLCCCA105basis point reductionininterest cost (average annual
savingsof $661,000or$3.305Milliondollarsavingsoverfiveyears.)
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
If all partners execute the agreement, the County of
Lancaster agrees:
An ordinance providing for a full guarantee, via the hotel tax, of the
principal and interest payments on LCCCAs debt will be placed on the
Commissioners Agenda for consideration.
If approved by the County, this means that the County would be required
to pay any principal and interest due on the LCCCAs bonds only if the
hotel tax revenues and reserves are insufficient to cover those payments.
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
K E Y C O M P O N E N T S
In order for the County to place the Ordinance on its Agenda, all parties will be
required to execute and return the Agreement to the County by close of
business on Tuesday, June 10, 2014.
The County will then place the required advertisement in appropriate
publications for purposes of considering the Ordinance at the public meeting
scheduled for Wednesday, June 18, 2014.
If the parties have not executed and returned the Agreement by June 10, 2014,
the Ordinance will not be placed on the Countys Agenda and the current
extension of the LCCCAs financing agreement with Wells will be permitted to
expire on June 30, 2014.
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
TIMING
The plan does NOT include an increase to the
Hotel Tax. It will remain at 3.9%.
Lancaster County Convention Center Funding Plan
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
HIGHLIGHTS OF THE AGREEMENT
Sets the LCCCA on solid financial footing, including for future
refinancing, with an assumption of only 1% growth in the hotel tax
revenues.
Funds FF&E.
Funds marketing for priority 1 and 2 events.
Concessions by all partners.
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
Lancaster County Convention Center Funding Plan
THINGS TO LOOK FOR
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
Added attractions.
SWAP termination fee.
Improvement in the economy/growth in the hotel tax.
Lancaster County Convention Center Funding Plan
END
Presented by: Lancaster County Commissioner Scott F. Martin, May 23, 2014
Lancaster County Convention Center Funding Plan