Jul. 28, 2003 - In one of his first public speaking appearances since being sworn in, Anchorage Mayor Mark Begich stumped for a proposal that was rejected by voters last year: a new convention center for Alaska's largest city. 

"The time is right and we need to move forward," Begich told the Anchorage Convention and Visitors Bureau at the group's July 11 monthly luncheon. 

A measure on the April 2002 municipal ballot called for boosting the city's hotel and motel bed tax to pay for a new center, but the proposition was soundly defeated by a 70 percent margin. 

Begich and other supporters of a renewed effort to get the idea on the April 2004 ballot say voters did not have enough information the last time around, and that the public was not sufficiently involved in the process from the outset. 

"It was more of a high-level media campaign," Begich said. "Versus a grass-roots campaign, getting into people's living rooms and explaining the value of the thing, and we need to do that. The public will make the final call." 

Supporters are now planning a series of meetings, polls, and a revamped advertising campaign to convince the electorate of the need for a new facility to supplement the 38,000-square-foot Egan Civic and Convention Center. 

When asked if the city might be pursuing excessive taxes on tourism, such as a recent hike in rental car taxes and the revised call for a bed-tax increase, the mayor said that is far from the case. 

"That has not shown any negative impact," he said. "Actually, we have some of the lowest (taxes) compared to other convention communities around the country. We're in really good shape." 

Begich stressed that any new facility would not be a drain on local taxpayers, and would eventually pay for itself. 

"This convention center has to have additional co-development that goes with it, and be private-sector driven in order to make it 'cross out' and keep it off the property tax rolls," he said. "That is our fundamental belief, and I believe the industry is willing to step up to the table and make it happen." 

The last time the idea was put forward, cost estimates for building the center were between $85 million and $115 million. Begich said he has been hearing "a lot of good ideas" from tourism industry leaders that can help keep the price tag down. 

The mayor said the new center cannot be a "stand-alone facility." 

"That's what they tried to do last time," he said. "What we want to do is present kind of a downtown re-development. Everything will be on the table, everyone will see the cost, everyone will see what the impact is and the benefits." 

Begich said there is great potential to bring together small and large businesses, the Alaska Railroad, the World Trade Center of Alaska and other players to take part in planning for a new center as part of a redevelopment vision for downtown. 

Proponents say the city has outgrown the Egan Center, and is missing out on opportunities to host large conventions and other gatherings. 

"We did some polls recently that show about 40 percent of the people believe that we need a new convention center today," said ACVB President Bruce Bustamante. "And of the 60 percent who don't think we need one today, a large percent stated that we'll need one someday. Well, someday is 2006 ... we need to get started today." 

He said the city is losing bookings from major organizations, because the Egan Center is too small to accommodate large conferences and exhibitions. 

Securing funding for new construction is one thing. Finding a location is another matter. A few years ago, backers were eyeing a site across from the east end of the Fifth Avenue Mall. That site now houses a new U.S. Park Service facility. 

Bustamante said there are two sites downtown that could tie a new center into the Egan Center, but he did not say which sites developers have in mind. 

He said skybridges could be built to connect the new center with the Egan, which would allow for construction of a smaller, less expensive project. 

Another concept that was making the rounds in 2002 called for building a 280,000-square-foot convention center below the downtown bluff area, near Ship Creek. Much of the property in that area is owned by Alaska Railroad Corp. 

Begich said his administration is not going to push for any specific site. 

"I think there is a lot of discussion in the private sector right now on alternatives. And we'll let them percolate it up," he said. 

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(c) 2003, Alaska Journal of Commerce, Anchorage. Distributed by Knight Ridder/Tribune Business News.