Reference no: EM132548244

A Convention Center

Congratulations! You have just been appointed to your city's council. You discover that a hot topic soon to be presented to the council in the construction of a convention center. Your initial research shows that several mid-sized cities are considering the convention center to a way to increase economic activity, including job creation. The challenge these cities face is how to finance the convention center; projected costs are $100 million. Voters may resist a ballot to increase local taxes (either property or sales), but there is still the taxes paid by people staying in local hotels - to consider. However, that tax is already earmarked for various local charities, and as we all know, good politicians want to be reelected; so voting against several worthy causes would not be popular. How can the center be financed and built? The city could float a bond on the market or could raise the taxes, but that might dissuade some groups from coming to your city because other cities have lower taxes

Questions:

Question 1. What would you do?

Question 2. What information do you need in order to decide whether to support or oppose the convention center?