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Clueless in Corbin

Bluegrass Institute

Kentucky taxpayers are already footing the bill for construction of a $12 million monstrosity known as the Southeastern Regional Agriculture and Exhibition Center. Corbin citizens should prepare themselves for a barrage of new taxes being considered by local politicians to pay for convention center’s maintenance costs.

No need to worry, say local officials.

It was brought to the attention of the city’s elected officials at a recent Corbin City Commission meeting that only a few convention centers in North America actually generate enough revenue to offset their expenses. Mayor Amos Miller’s convenient response was that the convention center does not have to make a profit and that the center will benefit businesses.

Of course, Miller did not venture to explain how building a center that increases taxes on existing businesses – and maybe even force some to close their doors – can provide such a great boon.

Commissioners admit they have no idea what the estimated annual maintenance costs of this boondoggle would be because no feasibility study has been conducted. Common sense would suggest that such an analysis be done before officials take on such an immense operating responsibility.

Despite having no clue about the cost of maintaining the convention center, officials do have some definite ideas on how to confiscate more of taxpayers’ hard-earned money to pay for the project. Proposals include a 3-percent restaurant tax increase, a 1-percent motel tax increase and a payroll tax. Corbin’s politicians have already recently introduced a “progressive privilege license tax” that would greatly harm some local businesses.

If politicians agree to this $12 million boondoggle, Corbin residents will be forced to provide life support for a project that will require cash transfusions for years to come. Instead, saying “no” to this risky project delivers the potential for real economic development to Corbin.

Sources:

“A first-class demotion” by Joel Peyton, Bluegrass Institute

“Space Available: The Realities of Convention Centers as Economic Development Strategy” by Heywood Sanders, The Brookings Institution

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