Columbus City Council voted Monday night to increase admission fees and send more of the city's share of state casino tax revenue towards renovating Nationwide Arena.
The legislation passed unanimously. Ticket and admission fees to Nationwide Arena will increase from 5% to 7%, while the share of the city's casino tax that goes towards the project will increase from 32% to 50% over the next four years.
The money would go to the Franklin County Convention Facilities Authority, the nonprofit created by the city and Franklin County to oversee Nationwide Arena and other facilities.
The FCCFA wants to renovate Nationwide Arena at a cost of $400 million. It is angling for $100 million in state funds from the same unclaimed funds pot of money that will help fund the new Cleveland Browns stadium in Brook Park.
Columbus City Councilmember Nick Bankston said renovating the arena is financially responsible and will be cheaper for the city in the long run.
"Think about this, the average cost to build a new arena is roughly between $1.2 billion and $2 billion," Bankston said.
Bankston said keeping Nationwide Arena up to date is key to the city maintaining its competitive advantage for events and experiences.
Ken Paul, executive director of the FCCFA, said these changes have a minimal impact on the city's budget while ensuring that those who benefit from the arena's success, help pay for its future.
Monday's legislation comes with caveats that councilmembers will hope save the city some money. First, the increase in casino tax revenue will be held until that state funding is secured. If not, it goes back into the city's bank accounts.
Second, the percentage of the casino tax will go back to 32%, its original level, when bonds funding the project are paid off. Some bonds last for 30 years.
An amendment added Monday night ensures these caveats and also requires the FCCFA to create a community benefits agreement. This agreement will ensure union members work on the renovations.
Councilmember Melissa Green voted for the measure, but expressed frustration over the legislation being pushed through quickly. She pointed out that the Community Shelter Board and other organizations have been asking for more funding for more than a year.
The city is in a tight budget year and may face cuts to homeless services and the Columbus Promise under Mayor Andrew Ginther's proposal.
