SAG team members prepared a feasibility study, hotel tax projections and bond offering due diligence for the expansion of the Baltimore Convention Center. The expansion was funded by the State of Maryland and the City of Baltimore. The City’s obligation was funded through a municipal bond offering supported by the City’s hotel tax.
The scope of services included market and financial due diligence procedures to provide the City and bond buyers the information needed to make investment decisions. The expansion was to be funded by an increase in the City’s hotel tax. The hotel community believed that growth in the lodging market would provide funding for the expansion and that the tax rate did not need increased. A unique “blinker” feature was incorporated into the bond offering whereby the tax rate could be adjusted each year depending on the lodging market performance. This made the hotel community comfortable that the hotel rate would remain as low as possible.
Project Components: Convention Center
Project Value: $150 million