Election
BY HEATHER MCCULLOUGH
A $62 million bond is on Roanoke’s May 3 election ballot for a downtown-centric convention center, city officials announced during their Feb. 11 council meeting. The city discussed funding for the center during its March 4 council meeting and how it plans to pay the debt using hotel revenue from: • 1% local sales tax • 6.25% state sales tax due to qualified city status • Hotel Occupancy Tax, which levies 13% per room price • User fees • 0.5% economic development sales tax Roanoke voters to decide on $62M bond in May
The breakdown
The impact
Convention center location
Roanoke hotel and convention center
On the ballot
1 Meeting areas
2 Ballroom/ convention center
3 Hotel entrance, restaurant and hotel amenities
4 Hotel reception lobby and administrative services
5 Market/ retail
6 Hotel rooms
7 Parking garage
PEABODY WAY
Ray Garfield, founder of Garfield Public/ Private LLC, said that with a hotel in downtown Roanoke, guests will go from spending $30 a day in the area to $300 per day, including the hotel room cost. “As a business owner close to the location of the hotel, it can only be a positive impact on my business,” said Annett Van Grinsven, owner of Wine:30 on Oak Street. The convention center will also provide a large space for organizations to meet, bringing in more revenue for Roanoke. “We are limited with facilities in the area that can accommodate large groups, [including] large businesses for conventions and retreats, nonprofit organizations for fundraising events and even our schools for proms and celebrations,” Metroport Cham- ber of Commerce CEO Sally Aldridge said.
The plans include a hotel and convention center east of city hall with the hotel being privately owned and funded, officials said. The convention center will be owned by the city and leased to the hotel owner for operation. The project would include conference rooms, meeting rooms, a ballroom, the hotel entrance, hotel amenities and a restaurant. The convention center is the only piece of the project included on the May 3 election ballot for bond approval. The hotel portion is not on the election ballot. “We really want to be where people come during the week to conventions and stay several days and then walk up and down the street and spend time and money,” City Manager Cody Petree said. Roanoke City Council stated the bond would not increase property taxes since city officials expect the convention center to pay for itself using sales tax produced from the project. The bond would also include costs for designing, constructing and equipping the convention center facility.
MONROE AVE.
Hotel details: 200
377
5
Roanoke
PARISH LN.
rooms Market and retail spaces
6
1
N
4
A venue tax could be voted on in a future elec- tion to increase revenue by $350,000 to $400,000 annually, Mayor Scooter Gierisch said. Garfield Public/Private LLC, the project’s design manager, predicted the hotel operating revenue will be $22 million by 2030 with a net income of $7.5 million, assuming a 72% occupancy of the hotel, city officials told Community Impact . The convention center’s annual debt is about $3.6 million, officials said. The net income will first pay off the hotel debt, then the convention center debt.
3
Restaurant
2
Fitness area
7
Pool
7
SOURCE: CITY OF ROANOKE/ COMMUNITY IMPACT
Ground floor
Hotel room accommodations
KELLER 101 Keller Smithfield Rd S (817) 482-8295
WESTLAKE 2341 Highway 377 (817) 490-9072
CITADEL 9564 Citadel Way Dr (817) 200-3080
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