reprinted from:

Civic center expansion drives increase in hotel tax;
Ballroom and arena are intended to attract bigger crowds, such as sporting events and conventions.
 

Editorial by Doug Nurse
Copyright 2000 Atlanta Journal-Constitution
Article date: August 16, 2000
 

The expansion of the Gwinnett Civic and Cultural Center has the potential to be an economic boon for local motel and hotel owners, although some innkeepers expect to hear from the people who will pay the tab.

"The out-of-towners won't like it," said Marla Fuller, general manager of Comfort Inn in Suwanee. "They think the motel taxes are too high as it is. A small increase could have an effect. People can live with $59 a night; they have a problem with $60 a night. But expanding the civic center would be a good thing for us, depending on how well it's advertised."

The Gwinnett County Commission also believes the civic center needs to grow, and on Tuesday approved increasing the tax on overnight stays from 6 cents on the dollar to 7 cents. The tax will become effective Oct. 1. Construction on the civic center could
start by the end of the year and take up to three years.

The taxes will raise an additional $500,000 to $800,000, which will be used with other hotel-motel tax revenue to pay for a $60 million to $90 million addition.

The addition includes an upscale ballroom and banquet area as well as a new arena.

"It will allow us to do bigger events," said Preston Williams, general manager of the Gwinnett Civic and Cultural Center. "We need to grow with our client base. Some of our existing clients are going elsewhere because we don't have the facilities to accommodate them."

According to a feasibility study unveiled in August 1999, the ballroom would cover 59,000 square feet and would accommodate 1,200 to 1,500 people. It would feature valet drop-off, and use the existing kitchen and exhibit hall. The space could be subdivided to manage casual and formal events simultaneously.

Williams said more than half of the civic center's clients are corporations, many of which are looking for places for banquets.

The 310,000-square-foot arena would offer 10,000 lower deck seats and 1,800 upper level club and suite seats. It would allow 11,800 spectators at hockey games, 11,500 for concerts and 14,000 people at center-stage events, such as wrestling matches.

Some of the targeted events include Disney on Ice, minor league hockey, high school graduations, high school sports and concerts, said Caryn Rachke Bean, executive director of the Gwinnett Convention and Visitors Bureau.

Other potential users include conventions, such as for business or religious groups. She said proponents have been trying to keep hoteliers abreast of the proposal, and that feedback has been favorable.

About 10,200 rooms are scattered among 89 motels and hotels countywide with a 68 percent to 70 percent occupancy rate. The average room costs $71.50, according to an industry study in May.

Craig Hillyard, general manager of Atlanta Marriott Gwinnett Place, said he doesn't believe the increase of $1 or less per room per night will make much of a difference to most people.

"I don't anticipate that it will be a big issue for most people," he said. " It's in line with the surrounding area, and if it allows us to pull in more convention business in Gwinnett, that's more room nights. It has the opportunity to afford us a return on our
investment."
 

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