Will City of Natchez decide to expand convention center?
Published 12:00 am Friday, January 15, 2016
NATCHEZ — The Natchez Convention Center manager says the facility is quickly outgrowing its shoes.
Almost a year after the Natchez Board of Aldermen last discussed the convention center’s possible expansion in a meeting, the convention center’s management company is still trying to get the funding needed for its expansion, which might require the city to restructure bonds and increase taxes.
The board voted Jan. 14, 2015, to hold off on restructuring its bond payments for the Natchez Convention Center — and a possible tax increase to fund an expansion — until a later date.
Convention center general manager Walter Tipton said he was still hoping to expand the convention center as soon as possible — a project that would cost approximately $4.5 million.
Tipton said the project would be worth it for the city.
“Last week I talked to one of the regional contractors who built the convention center and went over our plans for expansion,” Tipton said.
The expansion would increase the size of the center’s exhibit hall by approximately 40 percent, which Tipton said would greatly enhance the center’s ability to host more than one function at a time.
“We could, say, have a wedding reception at the same time as a major conference,” Tipton said.
Without the expansion, Tipton said the center has been turning down profitable events every weekend due to space limitations.
Fees for renting the convention center space go to the city, but Tipton said much of the center’s economic impact is a result of the money visitors spend in local shops, restaurants and hotels while they’re here.
“If you don’t have a place for people to meet, they won’t come to Natchez,” Tipton said. “It’s a simple choice: you have the space for meetings here, or the meetings get hosted in Tupelo or Jackson or wherever else. Every meeting you have at the convention center makes a positive impact on the market.”
The proposed expansion was actually part of the original plans for the building. A $12 million bond was issued in 1999 to build and furnish the convention center while also renovating the Natchez Community Center and Natchez City Auditorium.
“The plans we have were drafted in 2006,” Tipton said. “Now we’re 10 years later and we have the track record, so we need to add on to our house here.”
The convention center’s business has been consistently increasing during that time period, Tipton said, so the investment makes sense.
“It’s a natural extension of what we’ve been doing for years,” Tipton said. “We have a constant record of increasing. It’s not even taking a risk in that respect.”
Natchez Mayor Butch Brown said in order for the project to move forward, the board of aldermen would have to vote to send a proposal to the state Legislature.
Brown said the board would have to restructure or take out additional loans, and then ask permission to raise taxes to cover the bonds.
Under the existing structure bond, the convention center debt should be paid in full by 2024.
One of the proposed plans Brown presented to the board last year included restructuring the current bond on the convention center to add 10 years and approximately $4.5 million to pay for the project.
Brown proposes raising taxes only on tourist-related activities, such as hotel rooms and restaurants.
“Our local population doesn’t pay the tax increase,” Brown said. “Maybe pay a minor amount, an extra nickel on a $5 meal or something.”
The extra taxes, Brown said, would not scare away tourism.
“We’re very low on tax compared to (other) communities,” Brown said.
The board would have to take action in order for the project to move forward.
Ward 4 Alderman Tony Fields, who is running for mayor, said the expansion might have to wait.
“I’m in favor of expanding the convention center but I feel we are not in a position to even entertain the possibility right now under any circumstances,” Fields said. ”We are going to first have to get a handle on the city’s current financial situation before the subject even comes to the floor again.”
A 1-percent increase to room tax would bring $166,000, Tipton said during the meeting last year. A 0.5-percent increase to the restaurant tax would bring $243,000 — for a total of approximately $400,000 in additional annual revenue to support the expansion of the convention center.