SEATTLE — The $1.8 billion addition to the Washington State Convention Center is a giant construction project in Downtown Seattle.
Suddenly, finishing it is in jeopardy.
"As uncomfortable as this is, I have to admit we're in a crisis. We have a big problem," developer Matt Griffin of Pine Street Group told reporters Friday.
Griffin said in 2018, the convention center issued more than a billion dollars in bonds, the most allowed at the time.
Developers knew they would need $300 million more and planned to issue bonds in the next year or so with revenue from higher hotel taxes.
As of February, Griffin said everything was on track.
"Then the virus hit."
Hotels are all but empty.
The lodging tax revenue Seattle leaders were counting on has dried up.
"I love convention visitors to our city. They're like relatives that come to visit and pay your electric bill and buy you groceries before they leave," said Jon Scholes of the Downtown Seattle Association.
Scholes warns the tax burden could shift to city residents.
Griffin said the only solution is federal help, either a grant or security for the bonds.
"If we don't have additional funds to complete this project we'll have to stop in 10 to 12 months," Griffin said.
Labor unions say that would affect a thousand direct construction jobs.
The potential of an unfinished marquee project alarms leaders of business and government.
"This would have a ripple effect statewide," said King County Executive Dow Constantine.
Tom Norwalk of Visit Seattle said more than 30 conferences are booked for the new space beginning in 2022, and that convention bookings in Seattle extend all the way to 2029.
He’s confident the convention business will come back after this crisis.
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