Would selling the convention center and hotel eliminate the deficit in the Village’s General fund?
No. The hotel and convention center was 100% financed using bonds. If the property was sold these bonds would need to be paid off. Due to the recession and associated decline in property values it is unlikely a buyer could be found that would be willing to pay the entire amount of the outstanding bonds. It would benefit the Village to hold this asset until such time as the market rebounds. If the property was sold taxes in place to support it could be reassigned to the General fund, but they amount to $6 million per year and the deficit is $17.6 million. Without a property tax the Village could not capture any property tax generated by privatizing the facility. Claim 1 False. Claim 2 Misleading. General Fund revenues have been used on the Convention Center. Selling the convention center would greatly reduce, if not eliminate, the General Fund deficit. The Convention Center has received support from the Schaumburg’s General Fund in the past, including a $5,188,000 transfer in the 2007.
