Congratulations! You have just been appointed to your city’s council. You discover that a hot topic soon to be presented to the council is the construction of a convention center. Your initial research shows that several midsized cities are considering the convention center as 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 transient occupancy tax (TOT)—that is, 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 get reelected, 50 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 TOT, but that might dissuade some groups from coming to your city because other cities have lower TOTs.

What would you do? What information do you need in ordert o decide whether to support or oppose the convention center?