City officials say the creation of a convention facilities authority based at Marietta's Armory Square would not only help pay for operations of that facility, it would also increase the number of smaller conventions and other events in Marietta and Washington County.
"Many other progressive communities have been making use of this device for several years, and if the county commissioners will work with us, we'll show how vital this can be," said Marietta Mayor Michael Mullen.
He said state law allows counties to establish a CFA, including a director and six-member board, to market local convention facilities to groups for trade shows, conferences and other events.
The authority would be funded through the city and county hotel and motel bed tax. Ohio Revised Code allows county commissioners to levy a 1 percent to 4 percent increase in the local bed tax that is allocated exclusively to the CFA. The money must be used to market the community for conventions.
Marietta Councilman Harley Noland, D-at large and chairman of council's lands, buildings and parks committee, said the CFA would not only help grow the number of local conventions and other events, it would help fill more hotel beds and bring business to area restaurants and attractions. Noland is the owner of the Levee House Cafe and Marietta Trolley Tours.
"We already have facilities at local hotels, and soon at Armory Square, that can accommodate many smaller conventions," Noland said. "And money from bed taxes during those events, by state statute, would go back into the CFA's marketing efforts."
Mullen said a 1 percent increase in the bed tax would generate approximately $80,000 a year for a local CFA. That would result in a 7 percent bed tax for hotels within the city, and a 4 percent bed tax for lodging outside the city limits.
Noland said the CFA would not have the same duties as the Marietta/Washington County Convention and Visitors Bureau because the bureau concentrates on developing tourism.
The CVB also has its own major source of funding, which is half of the city's current 6 percent bed tax.
Wendy Wharff, executive director of the local CVB, said the bureau concentrates on both tourism and marketing the area for conventions, trade shows and similar events.
"We do that now as the county's CVB," she said. "And we try to promote all properties in the area for those events. And I would hope we could make progress without having to form another organization.
"Also, our partners would be concerned about sharing their business with a CFA," Wharff added.
If the CFA brought in new conventions that don't already come to the area, it could be a benefit, she said. But there may be concerns about the CFA drawing returning ones away from their established venues.
Wharff noted that, although Armory Square provides a large gathering space, meeting planners and groups the CVB deals with in its convention marketing efforts are usually looking for properties where attendees can sleep, eat and meet under one roof.
"But many planners are now also looking for something unique, and an historic building like the armory would be a unique setting for a meeting," Wharff said.
Frank Christy, who owns two Marietta hotels, was concerned about an increase in the bed tax.
"The timing is not ideal for another bed tax," he said. "2009 was the worst performance year that the lodging industry has ever had, and I think other hotel operators would also worry about adding a tax at this time."
Christy said if the tax is increased, it should be kept to a minimum and perhaps split between a CFA and the Hippodrome/Colony Historic Theatre Association, as the restored theater would also be a draw for the community.
Mullen, Noland and city development director Mike Stocky have asked the Washington County Commission to consider creating a CFA, and Mullen is scheduled to make another presentation to the commissioners today.
But Commissioner Sam Cook said the commission had listened to the presentation, but no decision had been made.
"I think we need a lot more information," he said.
