Dropping convention center was prudent

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Count the Journal Star editorial board among those who think it was wise to drop the convention center from the Haymarket arena project.

None of the three proposals put before the public this week show a convention center, although hotels planned for sites near the arena presumably would include conference and meeting space.

Originally, plans for the project envisioned a $20 million, 70,000-square-foot convention center as part of the project.

This spring, however, a consultant hinted that construction of the convention center would be a risky proposition.

John Kaatz of Convention, Sports and Leisure told the arena study group that a new convention center’s cost would be “very, very high,” and would likely attract only a half-dozen big national conferences a year. Existing conference space in Lincoln can handle most of state and regional events, he said.

Around the country, convention centers have been struggling in recent years. For example, revenue from convention business at Omaha’s Qwest Center has been below expectations. Omaha city leaders finally had to go the Legislature to write a formula that allowed more of the sales tax generated by the Qwest Center to go to paying off its debt. Otherwise, Omaha might have had to raise property taxes.

Kaatz said that most communities subsidize convention centers to the tune of several hundred thousand dollars a year to more than $1 million a year on the premise that they help attract out-of-town visitors who contribute to economic vitality and provide sales tax revenue.

In recent years, Lincoln taxpayers have been providing a subsidy of around $500,000 a year to Pershing Auditorium.

Kaatz suggested that the arena study group could try to find a private developer as a partner for the convention center.

The more prudent option is to just drop the convention center from the project altogether.

The move ought to make the Haymarket arena project more palatable to voters. Financial projections for a 13,000- to 16,000-seat arena without a convention center are much more encouraging. City leaders plan to put the project to a public vote in spring 2009.

In addition, by dropping the convention center, supporters can focus attention on the positive aspects of the project, such as the proposed new Breslow Ice Center, and the advantages a new arena will have over the old Devaney Center as the possible new home for Husker basketball and the venue for other entertainment events.

The public will get a chance to see how the new arena and surrounding development might look during a meeting on Sept. 3 at Memorial Stadium’s West Stadium Clubhouse.

Visitors will find the more realistically sized arena project seems more doable. They may even find it exciting.