Summary: The District of Columbia has proposed building a new, larger convention center to better compete for larger conventions and trade shows. The proposal is still in the early stages of development, and the District will need more information before precise cost and benefit projections can be made. The most recent convention center proposal indicates that the project should be able to generate enough revenue to cover known expenses; however, several unanswered questions could significantly affect these projections. Construction costs are very tentative--the project does not yet have an environmental impact study or an architectural and engineering design. Current cost projections also do not include needed infrastructure changes or total land costs. The project would be financed through the issuance of revenue bonds backed by specific District taxes. The District's high debt level makes the use of general obligation bonds to finance this project unlikely. The District has outlined the next steps that need to be taken to answer various questions. One key step will be authorizing contracts for various studies. These studies will better define the project and allow the District to specifically assess its costs and benefits.
