Christopher C. Conner

The hoteliers, represented by Harrisburg attorney Christopher C. Conner, counter that there is no evidence that a delay will jeopardize construction of the convention center.

Even though Stump, of Stevens & Lee law offices, Lancaster, and Sprague, of Sprague & Sprague, Philadelphia, allege the hoteliers have no case, the opponents point out that six of the seven Commonwealth Court judges had questioned Lancaster County Judge Louis J. Farina's application of a benefit-burden analysis -- used to weigh the benefits of the tax against its burden -- and concluded he had not gone far enough in determining the impact on local hotels and motels.

The 5 percent tax actually is two levies.A 3.9 percent room-rental tax (80 percent of which supports the construction and operation of the convention center) and a 1.1 percent excise tax.

The excise tax benefits the Pennsylvania Dutch Convention & Visitors Bureau, which promotes county tourism.
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Although the hoteliers' characterization of the proposed Marriott as "unfair competition" was discounted by Farina as capitalism at work, attorney Conner has argued that project changes following Farina's decision bolster the hoteliers' claims that by collecting the tax, they are helping to finance a hotel that will compete with them.

Farina had concluded the public convention center and the private hotel would be mutually dependent, but separately financed.

Conner noted that about three months after Farina ruled on the case, the Marriott hotel developers, Penn Square Partners, proposed a "new" project with common management, shared design, shared space, shared personnel, joint purchasing and "a public/private partnership which inextricably ties the hotel and convention center components financially, physically and operationally."

Penn Square Partners is composed of general partner Penn Square General Corp., a High Industries affiliate, and limited partners Fulton Bank and Lancaster Newspapers Inc., publisher of the Sunday News, Lancaster New Era and Intelligencer Journal.

The hoteliers charge that through contracts between the authority and Penn Square Partners, Marriott will receive more than $10 million in public subsidies.

About $8 million in subsidies come from savings the hotel developers will realize from sharing kitchen and meeting room space with the center.The center will construct those facilities and lease them to the hotel at $100 per year.

The hoteliers contend that the physical and financial dependence of the hotel on the center is what differentiates it from previous cases in which the Supreme Court upheld hotel room taxes.