Explanation
Background: This legislation authorizes the Director of the Department of Finance and Management to enter into contract with the Greater Columbus Arts Council (GCAC) and the Franklin County Convention Facilities Authority (FCCFA) for the purpose of distributing 2019 Admissions Tax proceeds from the Facility Stabilization Fund for the purpose of infrastructure investment in Nationwide Arena, as well as other cultural arts, sports, and performance arts venues in the greater Columbus area.
Nationwide Arena is home to the Columbus Blue Jackets and attracts national events, conventions, conferences and performances. The Arena is a cornerstone for Columbus economic development and directly and indirectly supports thousands of jobs in the city. As Columbus grows, and as the city earns an increasingly elevated status as a destination for concerts, conventions, and other major events, the demands upon the Arena will increase as well. Since the Arena is a publicly-owned facility, there is an inherent responsibility to plan for and support the costs of long-term maintenance and repairs.
As such, Columbus City Council authorized the establishment of the Facility Stabilization Fund, pursuant to Ord. 3379-2018. This Fund was created in order to provide for the resources necessary to maintain this integral facility, as well as to invest in other cultural arts, sports, and performance arts venues in the greater Columbus area. Proceeds were made possible via the enactment of a 5% tax on admissions to events in Nationwide Arena. This tax is estimated to yield approximately $3 million per year in revenue. Of that revenue, 80%, or up to $2.4 million, will be contracted with the Franklin County Convention Facilities Authority for long-term capital improvements and building infrastructure at Nationwide Arena.
Of that revenue, 20% or up to $600,000, will be contracted with the Greater Columbus Arts Council for disbursement to outside organizations to invest in other ...
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