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About The Project

The planned Lancaster County Convention Center and the Lancaster Marriott at Penn Square project is the centerpiece of downtown Lancaster’s renaissance. The most important regional economic development undertaking in decades, this project is expected to bring new hope, new jobs, and new financial strength to Lancaster City.

In creating a downtown convention center and hotel, community leaders seek to leverage Lancaster’s position as one of the most popular tourist destinations on the East Coast. Lancaster County’s wonderful variety of family entertainment, its historic sites, and its reputation for quality and value draw millions of tourists each year.

This project is expected to continue the momentum of recent endeavors to revitalize the city, including the Clipper Magazine Stadium, the Lancaster Quilt Museum, the Pennsylvania Academy of Music, and the Pennsylvania College of Art & Design. It also will restore Lancaster’s most historic streetscape and bring new life to its treasured landmark, the former Watt & Shand Building.

Lancaster’s Economic Development Action Agenda

In 1997, a group of community leaders comprising The Lancaster Campaign and The Economic Development Action Group contracts with LDR International, Inc., to create a plan to stimulate the economic revitalization of the City of Lancaster.

Through a comprehensive process involving community participation, research, urban design, and strategic planning, LDR International, Inc., develops Lancaster’s Economic Development Action Agenda for Prince and South Duke streets and downtown Lancaster. The plan identifies almost 60 projects and strategies important to the development of these downtown commerce areas. This list is reduced to seventeen strategies, including separate proposals to develop a state-of-the-art downtown conference center and to revitalize Lancaster’s historic Watt & Shand Building.

As proposed, the action agenda envisions the conference center as part of a redevelopment of Lancaster Square, including the former Armstrong/Lancaster Square Building and the Hotel Brunswick. Separately, the plan recommends adaptive reuse of the Watt & Shand Building to include a mix of retail stores and offices, with one or more tourism attraction venues.

Task Force Evaluates Strategy; Project Evolves

Through the efforts of the Lancaster Campaign, a Convention Center Task Force is formed in 1998 to address the Economic Action Agenda strategy that calls for the development of a first-class meeting facility. As a result of the task force’s deliberations and initiatives, the original strategy from the Economic Development Action Agenda evolves to become a combined Lancaster County Convention Center and first-class headquarters hotel at Penn Square.

Task force members approach Penn Square Partners about the potential of developing the Watt & Shand Building for the privately owned headquarters hotel. [Penn Square Partners had purchased the dormant Watt & Shand Building in February 1998. The historic structure had been vacant since the Bon Ton Department Store closed in 1995.] Penn Square Partners comprises general partner Penn Square General Corporation, which is affiliated with High Industries, Inc.; and Lancaster Newspapers, Inc.

After an independent feasibility study of the hotel and convention center idea, Penn Square Partners and the Lancaster Foundation jointly petition the Lancaster County Commissioners to create a Convention Center Authority and to enact a hotel room tax to support the project. County officials seek public input and debate the proposals before taking action in September 1999.

Convention Center Authority Forms, Partners with Private Sector

On September 15, 1999, the Lancaster County Convention Center Authority is established under the Municipal Authority Act of 1945 and the Third-Class County Convention Center Authority Act.

The Convention Center Authority is run by a seven-member volunteer board, which is appointed by city and county officials. Current board members include: Chairman Ted Darcus; Joseph Morales of Lancaster-Lebanon IU13; Willie J. Borden, Jr., of PPL; David Schwanger of Schwanger Brothers Inc.; Laura Douglas of MAX International Converters, Inc.; Debra Hall of Ephrata Area Chamber of Commerce; and R.B. Campbell, Jr., of Business Marketing Works, Inc. The board’s plan of action is implemented by Convention Center Authority Executive Director David Hixson.

The board is charged by local officials with developing a unique and inviting convention venue for this area and to work with a private-sector partner to develop a first-class lodging facility to enable the convention center to achieve its goals. In addition, the Convention Center Authority is encouraged to work with local experts to preserve any significant historical buildings that may be located at the site.

In 2001, the Lancaster County Convention Center Authority and Penn Square Partners formalize their relationship for the purpose of developing, designing, building, and operating a convention center and hotel. The partnership agreements between Penn Square Partners and the Lancaster County Convention Center Authority establish performance covenants and carefully protect the interests of the community.

Convention Center Project Funded with Hotel Room Tax

In January 2000, Lancaster County imposes a 3.9-percent tax on hotel room rentals to generate funding to construct and market a publicly owned convention center. Twenty percent of this funding is distributed to the Pennsylvania Dutch Convention and Visitors Bureau to promote Lancaster County as a convention and meeting destination.

In March 2000, local hoteliers file the first of several lawsuits challenging the constitutionality of the hotel room tax. For 3½ years, the Lancaster County Convention Center project is, in effect, put on hold while the litigation is resolved. Total cost to the Convention Center Authority is many millions of dollars, including litigation costs and increased construction material and labor costs resulting from the delay. Penn Square Partners also incurs substantial additional costs including maintaining the Watt & Shand Building, litigation, and increased construction costs.

Project Benefits

In late 2000, the Lancaster County Convention Center Authority commissions an independent study to evaluate and quantify the community benefits of the project. According to the analysis, the convention center and hotel will:

• Create 520 to 590 construction jobs.
• Create 200 to 300 full-time jobs to staff the hotel and convention center.
• Increase Lancaster County tourism by an additional 114,000 to 147,500 visitors annually.
• Inject $150 million into the local economy during construction: $110 million in sales of Lancaster County-produced goods and services and $40 million in personal income.
• Inject $42 million per year into the local economy during operation: $31 million per year in sales of Lancaster County-produced goods and services and $11 million per year in personal income.
• Generate additional tax revenue for Lancaster City, Lancaster County, and the School District of Lancaster.

Project Partners

With a project of this magnitude, the Lancaster County Convention Center Authority relies on the expertise of various individuals, companies, and firms, including:

Cooper Carry, Inc.: Atlanta-based architects contracted to design the Lancaster County Convention Center and the Lancaster Marriott at Penn Square.

George K. Baum & Company: A West Conshohocken-based advisory firm under contract to assist the Lancaster County Convention Center Authority with financial matters.

High Associates, Ltd.: Master developer of the Lancaster County Convention Center and the Lancaster Marriott at Penn Square

Interstate Hotels: Hired by Penn Square Partners and the Lancaster County Convention Center Authority to manage the Lancaster Marriott at Penn Square and the convention center, respectively. The selection of a common hotel and convention center operator is expected to enhance operational efficiency and allow for better coordination in handling large conventions and trade shows.

MM Architects, Inc.: Lancaster-based architectural firm contracted to design a parking garage to enhance downtown parking.

Reynolds Construction, Inc.: Harrisburg-based construction manager for the convention center project.