Reps: Let Boston pay MCCA Tab

Written By Unknown on Sabtu, 12 April 2014 | 00.32

Skeptical House lawmakers from the South Coast and Western Massachusetts questioned why statewide hotel tax money should be funneled to Boston to pay for a $1.1 billion convention center expansion — and why Hub taxpayers aren't picking up more of the tab.

"From where I am, 110 miles from the State House, no one wants to keep footing the bill in Boston," said state Rep. Nicholas Boldyga (R-Southwick), one of four members of the 11-member House Committee on Bonding, Capital Expenditures and State Assets at yesterday's hearing. "They come here infrequently and they can't even get $10,000 budgeted for a cultural council."

Chairman Antonio Cabral (D-New Bedford) wanted to know why Boston isn't paying more of the expansion costs — like it did in 1997 when it shelled out $157 million to construct the Boston Convention & Exhibition Center.

"Would Boston be prepared to again be a partner since it's the city that's probably going to benefit the most out of the expansion?" asked Cabral.

"Boston feels we are partnering in this proposal and that we are a partner at that table," said John Barros, the city's economic development chief.

Barros said Boston used much of the money in 1997 to help acquire the land the Massachusetts Convention Center Authority now owns, and that Boston and Cambridge contribute 98 percent of the money in the convention center fund that will help pay for the construction.

The Herald reported this week that the state hotel tax fund could be used as collateral to secure the bonds for the convention center expansion.

But in a surprise revelation, Colin MacNaught, an assistant state treasurer, told the committee there's a high likelihood the state will have to dip into that hotel tax fund at some point to pay back bondholders.

MCCA Executive Director James Rooney disputed that.

"I would be willing to bet that if that happened, the Legislature would say, 'Wait a minute. Let's solve this another way. We're not using statewide resources for this. Let's look at those revenues that flow into the convention center today and see if we can raise those taxes instead,'" Rooney told the Herald.

Rooney told the committee the state is losing out on major conventions because the BCEC is too small and the South Boston Waterfront lacks enough hotel rooms. The proposal would expand the BCEC by 1.3 million square feet.


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