AUGUSTA (AP) – For years, Bangor and Portland officials have talked of building new civic centers to replace aging structures now in use. But talk is silenced when the question of how to pay for them comes up.
On Tuesday, Gov. John Baldacci signed an executive order addressing the sticky issue of money so the discussion of building new convention centers can continue.
The governor said he believes it is about economic development and hundreds of new jobs. His order notes that private investors have proposed large-scale hotels, parking garages and office complexes to complement publicly owned civic, convention and cultural facilities.
“Many of the benefits of these facilities are statewide and the cost of construction shouldn’t be entirely borne by property taxpayers in service center communities,” the order says.
Baldacci’s order brings together more than a dozen stakeholders representing Portland, Bangor, Lewiston, Auburn, Augusta and Presque Isle, as well as tourism, development and other business-related organizations.
They are to submit a report by Dec. 15 outlining suggestions on how to finance civic and convention centers. Their recommendations could take the form of legislation during next year’s session.
Possible ideas could include local option taxes or revenues derived from increased business drawn by the new civic centers, bond issues and financing methods borrowed from other states. The executive order is an outgrowth of Baldacci’s Creative Economy Summit held in May in Lewiston.
Local option taxes have not been well-received during past legislative sessions.
During the 2003-04 session, a bill that sought to allow municipalities to adopt by local referendum 1 or 2 percent local sales taxes on prepared food and lodging failed. At least three other measures seeking authorization for local option sales taxes also ended up in the dead files.
Bangor attempted to get a local-option tax for the city’s auditorium enacted in 2002, but failed. The Bangor Auditorium has structural problems.
In Portland, the Cumberland County Civic Center faces competition from newer, bigger, out-of-state arenas. Last year, a committee of business leaders and public officials recommended that a 10,000-seat arena be built in the city’s downtown.
The $50 million to $60 million building would seat 10,000 fans for concerts and 8,500 people for hockey and other ice events, the committee said. Funding would come from a proposed 1 percent increase in the state’s meals and lodging tax. Some of the tax revenues could benefit similar projects in the state.
AP-ES-07-13-04 1846EDT
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