reprinted from:
Galveston council
OKs plans for new convention center;
By Kevin Moran GALVESTON - City Council's decision Thursday to establish a new beachfront convention center has set the scene for a political battle. Council voted to let Houston businessman and island native Tilman Fertitta build and operate a new city convention center at his beachfront San Luis Resort and Conference Center. But banker, developer and insurance magnate Robert L. "Bobby" Moody wants the city to keep its convention center at Moody Gardens, the $300 million nonprofit tourist attraction built over the last decade by Moody's family foundation. Before Fertitta can begin construction of a new convention center, voters must approve an increase in the local hotel occupancy tax from 13 percent to 15 percent to help finance the center's construction. Moody, also a Galveston native, is launching a full-scale campaign to defeat the proposal and keep hotel tax dollars flowing to Moody Gardens. He could not be reached for comment Thursday. The dispute over the convention center's location already has pitted Galveston County Sheriff Joe Max Taylor, a 16-year Moody Gardens board member and current Moody Gardens president, against Moody. Last month, Taylor refused to let Moody Gardens use his name or photograph in advertising supporting expansion of the existing convention center. Taylor said Thursday that Moody has broken promises to support whichever convention center plan the city adopted. "If you give your word you're going to support something, you can't come out the next day and start to fight it," Taylor said. "I just felt this was wrong." He said he believes it was illegal to use nonprofit Moody Gardens funds to hire Austin lobbyist Bill Miller, buy a full-page newspaper advertisement and pay for a citywide mailing about expanding the existing convention center. Taylor said he cast the only vote on the Moody Gardens board opposing the expenditures. "I told Doug I felt we could not hire Bill Miller to oppose an election, and it is against the law to oppose or promote any election with public funds," Taylor said, referring to Moody Gardens Executive Director Doug McLeod. "Any funds we've received by this board, no matter where they came from, were public funds." Moody Gardens attorney Jerry Adams said, however, that tax lawyers the foundation hired approved expenditures for Miller's advice and for advertising Moody Gardens' offer to the city to spend $14 million to expand the existing convention center. The Galveston Park Board of Trustees, which recommended that the City Council adopt Fertitta's proposal, tabled the $14 million offer. When Taylor balked at the advertising expenditure Nov. 13, Fertitta and the city were well into negotiations of the contract awarded Fertitta on Thursday. Taylor remains on the Moody Gardens board, but eight-year veteran Armin Cantini resigned a week after Taylor protested the advertising. Cantini said Thursday that he didn't want to be in the cross-fire of the election battle. "The situation's going to be very difficult for the city of Galveston," said Cantini, a university fund-raiser. "I'm director of development for Texas A&M University at Galveston and very proud of the work I'm doing here in the community, but I didn't want to place the university in an uncomfortable position as this moves forward." McLeod said the council vote to schedule the election prevents him from commenting because he is an officer of the nonprofit Moody Gardens. Details of the Moody campaign against the hotel tax increase were unavailable Thursday, but it is expected to be financed by a political action committee set up by Moody family businesses. Among those is Gal-Tex Corp., a for-profit firm that operates Moody Gardens under contract with the Moody Foundation. After council voted to locate a new convention center at his beachfront resort, Fertitta told hundreds of people at a Galveston Chamber of Commerce luncheon that the facility he plans will accommodate the needs of more than 70 percent of groups in the nation that hold conventions. "We're not going to compete against San Antonio and we're not going to compete against Houston," Fertitta said. "We're going to compete against the tourist cities around the country that we should be competing against." Mayor Roger "Bo" Quiroga agreed with Taylor that Moody reneged on promises to support the city's choice even if Moody Gardens lost the convention center. "I think the community is really behind Mr. Fertitta's deal, but, unfortunately, the resistance is out there," Quiroga said. "Now we're at the stage where we'll ask the voters to approve that 2-cent hotel tax increase in January." Quiroga said council chose the beachfront site because members believe it will best spur economic development on the beachfront and in the city in general. Council also voted Thursday to give 30
days' notice to Moody Gardens that the city will cease turning over any
hotel tax revenues to Moody Gardens. |
