Historical October 1987 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.
On Tuesday, November 3, 1987 voters of the City of St. Louis will be considering two tax proposals that will directly impact the City’s potential for future economic development.
The two tax measures, Propositions 1 and 2, will provide the necessary funding for the expansion of the Cervantes Convention Center.
If approved, the tax proposals will generate the revenue needed to purchase the land for the expansion and cover the costs of construction. Passage of the two tax measures is critical to the continued economic growth of the City of St. Louis.
The expansion plans of the Cervantes Convention Center involve expanding the convention center by 50%.
The existing 240,000 square foot convention center would be increased by 120,000 square feet.
The expansion plans call for increasing the size of the exhibition halls and number of meeting rooms, new lobby space and new kitchen facilities. Also, the land between 6th Street, Highway 70, Cole and Convention Center Boulevard will be purchased to allow for future expansions.
The total cost of the expansion, including the purchase of land, totals $72 million.
Funding for the convention center expansion will be derived from increases in the existing hotel and restaurant taxes. Proposition one would increase the gross receipts tax of restaurants in the City by one half of one percent. What this means to the consumer is that for every $10 on a restaurant bill, the consumer would pay an additional 5 cents in taxes. Proposition two would levy a flat fee of $1.50 per occupied hotel/motel room night.
In 1990, the fee would be increased by another .50 cents to $2.00 per occupied hotel/motel room night.
The license fee would be collected only on occupied, revenue producing hotel and motel rooms. Currently, the hotel room tax is 3.75%.
If approved by the voters, both taxes would be instituted January 1, 1988.
It is estimated that, combined, the two taxes would generate approximately $4.1 million in 1988 and by 1990, revenue would increase to about $5.4 million annually. Approximately $3.6 million of the $5.4 million would be derived from the $2.00 room night fee on occupied rooms and $1.8 million from the increased restaurant tax.
The expansion of the Cervantes Convention Center is a vital component in the continued economic growth of the St. Louis community.
According to an economic impact analysis conducted by the accounting firm of Laventhol and Horwath, the expansion of the convention center would create 4700 new, permanent jobs and an additional 1180 jobs during the construction period.
It is estimated that an additional 458,220 persons will attend conventions in St. Louis after the expansion is completed.
These people are expected to spend an additional $183,870,000 annually in St. Louis.
It is also projected that this additional economic activity will generate increased city, county and state tax revenues of some $30.8 million per year.
The expansion of the Cervantes Convention Center is the key to the continued growth of the metropolitan St. Louis area.
If the convention center is not expanded, St. Louis will lose a great deal of the convention and tourism business that it currently enjoys.
In order to ensure that St. Louis remains on the forefront of economic development, I urge all St. Louisans to vote Yes on Propositions 1 and 2.
Originally published in The Times of Skinker-DeBaliviere, October 1987.
Read this article in the original newspaper issue.
Original source: SD_Times1987_10.pdf, printed page(s) 4; PDF page(s) 4.
