The Monroe County Council considered a 1% food and beverage tax levy during its April 23 work session. The tax would fund the Bloomington-Monroe County Convention Center’s expansion.
“It’s certainly not an ‘if you build it, they will come’ situation,” said Mike McAfee, executive director of Visit Bloomington.
The convention center was built in 1977 using money raised by the innkeeper’s tax, which is levied on those staying at hotels in the county. But the food and beverage tax would impact local residents, as well as visitors.
“This is a tax on our local folks, and we have to make sure that they’re behind it,” said Marty Hawk, Monroe County councilor representing Richland Township.
The convention center has hosted 12,000 events with more than 1.2 million attendees. In the last three years, Indiana University has held 140 events there.
Expansion of the convention center, which is the smallest in Indiana, was first proposed 23 years ago.
McAfee told the council that the convention center could hold 250 to 300 people “comfortably.”
He said the convention center is often rejected by prospective clients for two reasons: its size and because it does not have an attached hotel.
“We need a true headquarter hotel. We need to be able to get a room block for these groups,” McAfee said.
The convention center pieces together lodging for visiting groups using small blocks of rooms at different hotels in downtown Bloomington.
McAfee said expanding the convention center would enable his sales team to draw bigger clients. Businesses catering to its clientele would develop around the building. Before that, a $30 million expansion would create more than 100 construction jobs.
Some of the estimated 200 full-time jobs created would be management and trades, but most would be low-wage retail and service jobs.
The details of the food and beverage tax have not yet been worked out, though it seems clear the council will opt for the state to collect the tax to minimize the burden on restaurant owners and county tax officials.
“There’s still a lot of work to be done between all parties in coming up with any kind of arrangement,” said Geoff McKim, president of the Monroe County Council.
Once collected, the food and beverage tax would be split into two funds: county and city. Restaurants within Bloomington city limits would pay into the city fund. Those in the county would pay into the county fund.
McKim stressed, however, that he wants to act as though there is only one fund. The county council will have to work with the Bloomington City Council to make sure that happens.
A cap on how long the taxes could be collected without acting was discussed. If after five years the convention center had not acted, it was suggested, it should be forced to make a decision.
“It will be a lot of work, but it will be worth it,” said Talisha Coppock, executive director of Downtown Bloomington. But she stressed that officials should be prepared for another 20-year commitment if they move forward.
Originally published in Ellettsville Journal, 2013. Republished here for archival and portfolio purposes.