What you need to know
The bond would not raise property taxes since city officials expect the convention center to pay for itself using sales tax produced from the project, Mayor Pro Tem Holly Gray said.
The bond would include costs for designing, constructing and equipping the convention center facility. The center would include conference and meeting rooms, ballrooms and gathering space that will be attached to a full-service hotel.
The election will be held May 3.
Zooming in
Along with the hotel and convention center, a parking garage will be constructed on the 3.5-acre lot.
The hotel would be privately owned and funded, and conversations are still ongoing about what type of hotel will be constructed, said Steve Risser, vice president of business development at Gallagher Construction Company.
“The idea is to have a boutique-style hotel,” Risser said. “We want to make sure that Roanoke maintains its uniqueness.”
Additional details
Because of a state statute, the city is required to call a bond election for the convention center. The bond would increase the debt for the city but officials are planning to rely on Roanoke's Economic Development Corporation and sales tax from the hotel to pay the debt.
The estimated interest of the bond would be $50,573,637 based on the interest rate of 4.25%, which was calculated using current market conditions, according to city documents.
Currently, the city’s debt, including interest, is $140,824,165.
The background
The city had planned to construct the Peabody Hotel and convention center in the location by city hall, but plans fell through.
The city announced the end of its partnership with Peabody on Dec. 6, saying that multiple factors led to this conclusion, including hotel officials bypassing the 2023 groundbreaking deadline, Community Impact previously reported.
The hotel was initially supposed to break ground in 2020 after the project was approved by city council in 2019.
