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Galveston gives boot to hotel tax boost
Copyright 1999 The Houston Chronicle Publishing Company A controversial plan to help pay for a convention center expansion with a 2-cent increase in Galveston's hotel tax was soundly defeated Tuesday. North of Houston, however, voters in Willis easily approved two measures to boost their sales tax and finance a range of improvements. Those were just two of the elections in area cities and school districts as voters resolved issues and filled school board seats. Final returns showed the proposal to raise Galveston's hotel tax from 13 cents to 15 cents losing by a count of 2,335-1,501. The 2-cent increase had been intended to pay off more than $10 million in bonds to cover the city's share of a proposed $56 million expansion of Galveston's official convention center at Moody Gardens. The charitable Moody Foundation agreed to put up the rest of the expansion costs if voters approved the tax rate increase, but the plan met with suspicion among many Galveston residents who are wary of the influence the powerful, wealthy foundation wields. Moody Gardens is a nonprofit tourist attraction run by the foundation. The facility already receives 1 cent of the hotel tax per year - now about $578,000 - to operate the convention center. City Councilwoman Dianna Puccetti, who opposed the tax rate increase, said she believes the city needs a viable convention center, but that there must be an agreement spelling out how it will be used, financed and managed. "When the issues of what is included and how it will be financed are settled, then we should go back to the voters a second time," she said. Doug McLeod, Moody Gardens board chairman and Moody Foundation development director, said he didn't know whether foundation chairman Robert L. "Bobby" Moody Sr. and other trustees will be willing to put up $46 million or any other amount in the future. "We hope we can do some great things at Moody Gardens still, such as build the proposed parking garage, if we cannot expand the convention center," McLeod said, noting that the foundation would pay for the garage. He said he expects Moody representatives to meet and decide what, if anything, to do regarding a possible expansion. Sheila Lidstone, chairwoman of the Galveston Park Board of Trustees, which owns the
land and buildings at Moody Gardens, said she is pessimistic that the Moody Foundation
will make as large an offer in the future. |