Independent News and Commentary for Lancaster County, Pennsylvania
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Convention Center / Hotel Project RISK per Household.
$3,930 for Lancaster City; $840 for Non-City Household*

Commissioners Shellenberger and Henderson are concerned that in the future the City
and the LCCCA will request tax increases to cover deficits.

CITY GUARANTEES – HOTEL
______________________________

City mortgage guarantee: $24,000,000, average 20 years.
Principal borrowed: $24,000,000.00    Term: 20 years   Annual interest rate: 5.00%
Total Principal and Interest Paid:                                 $31,677,840

City School tax guarantee:  $800,000 x 20 years =      $16,000,000
(2% of $40,000,000 hotel assessment)

City Tax Increment Financing (TIF) guarantee
       for 17 of the 20 years:                                              $17,000,000

   $64,677,840


$64,677,840 / 20,933 households = $3,090 risk per City household.


COUNTY / LCCCA GUARANTEES – CONVENTION CENTER
__________________________________________________

 County has guaranteed $20,000,000 of a $40,000,000 bank loan to be converted into tax free bonds.
LCCCA guarantees the other $20,000,000. Since LCCCA is not a taxing authority, risk will be greater than if fully guaranteed by county.

Principal borrowed: $40,000,000.00   Term: 40 years   Annual interest rate: 6.00%  

Total Principal and Interest Repaid:                  $105,641,040


LCCCA is likely to borrow an additional $14 million to help close construction cost gap.

Principal borrowed: $14,000,000   Term:  40 years    Total Annual interest rate: 6.50%

Total Principal and Interest Paid:                               $39,342,696
                                                              $144,983,736

$144,983,736 / 172,560 households =   $840 risk per County household

$3,090 City + $840 County = $3,930 per City household


* These calculations are based upon market conditions. Interest rates and amounts borrowed may vary.

Above information originally published in NewsLanc Newsletter Vol. I, No. 7, Sept. 26, 2006.