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DC Does Not Have Enough Money to Pay for the Proposed New Convention Center. . . .

October 1997

D.C. DOES NOT HAVE ENOUGH MONEY TO PAY FOR THE PROPOSED NEW CONVENTION CENTER,

SO THE D.C. COUNCIL PLANS TO RAISE YOUR TAXES

The Council is set to vote for a bill that would direct the Mayor to raise taxes to pay for the convention center if available funds are short. From D.C. Council Bill 12-379 'The Mayor shall impose a surtax, to become effective on before the first day of the upcoming fiscal year, on each of those taxes dedicated to the Authority, except the tax on sales of restaurant meals and alcoholic beverages, in an amount equal to the pro rata share of the difference between (i) the sum of the projected expenditures and reserve requirements ...and (ii) the projected revenues."

AFFECTED TAXES INCLUDE
** Incorporated and Unincorporated Business Income Tax: Paid by every business in D.C.
** Sales Tax on Rental Cars and certain other items

THERE IS NO CAP ON THESE TAXES. THE LAW WOULD REQUIRE TAX INCREASES TO PAY FOR ANY FINANCING SHORTFALL.

THE COST OF THE NEW CONVENTION CENTER IS SKYROCKETING

Meanwhile, the choice of the Mt. Vernon Square site for a new convention center -- requiring excavation to build 500,000 sq. ft. of exhibition space underground and the construction of extensive truck tunnels and ramps below and above ground -- is driving initial estimated costs for the project upward. As late as Sept. 25, 1997, the U.S. Government Accounting Office said the total cost of the project is "uncertain."

Washington Convention Center Authority 1993 Estimate, $455 million
WCCA February 1997 Estimate, $550 million
WCCA July 1997 Estimate, $650 million
GAO Estimate, $737 million
Committee of 100 Estimate Including Land Value (GAO plus $85 million), $822 million
Committee of 100 Estimate plus reported $100 million construction bid overrun*, $922 million
*Reported by the Washington Business Journal and the Washington Times.

RESULT: UNLIMITED TAXATION TO PAY FOR A PROJECT WHOSE COSTS ARE OUT OF CONTROL BEFORE. CONSTRUCTION BEGINS

CALL:

Harold Brazil 724-8174
Carol Schwartz 724-8105
Frank Smith 724-8179
Harry Thomas 724-8028
Kevin Chavous 724-8068
Jack Evans 724-8058
Hilda Mason 724-8064
Linda Cropp 724-8032
Arrington Dixon 724-7772
Kathy Patterson 724-8062
Sandy Allen 724-8045
Charlene Jarvis 724-8052

Testify: D.C. Council Hearing on Bill 12-379
Tues. October 14, 1997, 9 a.m.
Sign up to testify by calling 724-8152

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