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Project History
1877
1992
1993
1995
1996
1997
1998
1999 Three young enterprising Scotsmen, Gilbert Thompson, Peter T. Watt and James Shand, arrive in Lancaster looking for a prosperous community where they can realize their dream of opening the dry goods “store of the future.” They acquire the store operated by English-born Joseph Simon who arrived here in 1740. In 1917, at the start of World War I, the Watt & Shand store stood in Penn Square with essentially the same distinctive Victorian architecture seen today. The Lancaster Downtown Investment District Authority (DID) is formed when property owners within the District grant their approval of a special tax to provide a reliable and equitable source of funding for downtown management programs. The DID is a nonprofit municipal authority that is dedicated to the continued economic vitality of downtown Lancaster. April 5, 1992 — The Bon Ton Department Stores purchase the Watt & Shand Building and converts it to a Bon Ton store. June 1993 — The Lancaster Alliance is formed, comprising the CEOs of Lancaster's 16 largest employers, to spearhead and to forward community economic revitalization efforts. March 4, 1995 — The Bon Ton closes the Watt & Shand Building and it goes dark.
March 1995
—
The Economic
Development Company of Lancaster County, Pennsylvania
takes the lead, with Fulton Financial and Lancaster Newspapers,
Inc., to respond to the July 1996 — The Lancaster Campaign is formed out of the structure of the Lancaster Alliance. It is a sustained, comprehensive effort to achieve community consensus to generate significant improvement in the center-city area.
November 1997
—
Efforts to locate a February 1998 — An Economic Action Agenda is adopted by the Lancaster Campaign outlining strategies for revitalization of the City. February 1998 — Penn Square Partners, representing three civic-minded local companies, is formed and purchases the Watt & Shand Building to save it for an as-yet undetermined use. June 1998 — A Convention Center Task Force is formed through the efforts of the Lancaster Campaign, to address the economic action agenda strategy that calls for the development of a first-class meeting facility in Lancaster. September 1998 — Penn Square Partners convenes public hearings on its own initiative to obtain public input about potential uses of the Watt & Shand Building. The consensus: create a “magnet” use for the property as a centerpiece for revitalization. The Watt & Shand Building is added to the National Register of Historic Places, along with such other Lancaster County treasures as the home of the County’s first settler, Hans Herr, and the 1750 Old City Hall Building, directly across the street. Spring 1999 — The Convention Center Task Force formed in June 1998 approaches Penn Square Partners and asks the Partners to consider developing the Watt & Shand Building as the headquarters hotel for the new convention center. Summer 1999 — Penn Square Partners supports a request to the Lancaster Campaign for seed money to study the feasibility of the hotel and convention center idea. When the study is completed, Penn Square Partners and the Lancaster Foundation jointly petition the Lancaster County Commissioners to create a convention center authority and a hotel room tax to support it. September 1999 — The Lancaster County Convention Center Authority LCCCA is formed to make plans to develop a convention center building. A 3.9% hotel room tax is enacted by the Lancaster County Commissioners to fund the Authority. March 2000 — A group of 37 local hoteliers files suit against the hotel tax contending that it is unconstitutional and an unfair burden on them. November 2000 — A three-month feasibility study, commissioned by LCCCA and conducted by PriceWaterhouseCooper LLP, is released. Among other conclusions, the study emphasizes the benefits of sharing facilities and staff between the proposed convention center and hotel and recommends a larger center than originally envisioned by planners.
January 2001
— Penn Square Partners selects Interstate Hotels, based in June 2001 — Lancaster County Court upholds the constitutionality of the hotel room tax. Shortly thereafter a group of now only 11 hoteliers, led by the Best Western Eden Resort Inn and Conference Center and the Lancaster Host Resort and Conference Center, appeals the ruling to the Commonwealth Court. July 2001 — Penn Square Partners announces that the new hotel in the Watt & Shand Building will fly the flag of the Marriott Hotels Resorts and Suites brand. September 2001 — LCCCA enters into negotiations with Interstate Hotels to manage the proposed convention center in downtown Lancaster. By having Interstate manage the convention center as well as the hotel, the public authority will save about $500,000 annually through staff and facility sharing. December 2001 — Penn Square Partners and LCCCA formalize their relationship through a series of agreements for development, performance covenants and protecting the interests of the community. Winter 2002 — Economic Development Journal publishes Public Subsidies for Headquarters Hotel Development January 2002 — Commonwealth Court remands hotelier's lawsuit to the original Lancaster judge, saying the original ruling that upheld the constitutionality of the tax was flawed. January 2002 — LCCCA finalizes its management contract with Interstate Hotels. February 2002 — LCCCA asks the Pennsylvania Supreme Court to seize hoteliers' lawsuit from the lower courts and to rule on the constitutionality of the hotel room tax.
March 13, 2002
— Penn Square Partners and the LCCCA select
Cooper Carry Architects of April 2002 — The Pennsylvania Supreme Court agrees to expedite a ruling on the validity of Lancaster County's 5% hotel tax. In the two years since the tax was initiated, the rate of increase in hotel room demand in Lancaster County has more than doubled compared with the growth rate in the previous six years. In the second year of the tax, that rate of increase was four times the rate of the previous six-year average, exceeding national trends. (Reported in Central Penn Business Journal, April 24, 2002.) June 2, 2002 — Time has run out for the 11 hoteliers seeking to delay construction of a proposed downtown convention center, contend attorneys representing Lancaster city, county and the county convention center authority in remarks filed with the state Supreme Court. (Reported in Sunday News, June 2, 2002) July 16, 2002 — In a unanimous 7-0 decision, the Pennsylvania Supreme Court rules the hotel tax constitutional. While this is a major victory for the Lancaster County Convention Center and the Marriott Lancaster at Penn Square project, the Court remands other issues in the case back to the Commonwealth Court for an “expeditious review.” These issues include equal access and tax enactments. The 11 hoteliers who are suing Lancaster City, Lancaster County and the LCCCA in an attempt to delay and destroy the project, could appeal the constitutionality issue to the U.S. Supreme Court. However, the Pennsylvania Supreme Court opinion seems to indicate that it would be unlikely that its decision would be overturned. August 2002 — The project design team, led by Cooper Carry Architects, holds a two-day, intensive design charette to seek community input on critical design issues. A set of guiding design principles emerges from the session. See the Frequently Asked Questions section of this site for a list of those principles. September 19, 2002 — A design update community meeting is conducted as an open house at Lancaster's Southern Market Center. More than 80 people in attendance review the preliminary design for the hotel and convention center, which would be "a place sewn into the city," according to Pope Bullock of Cooper Carry Architects. (Reported in Lancaster New Era, September 20, 2002.) November 2002 - Schematic design for the project is completed. December 3, 2002 — In a one-line ruling, the Commonwealth Court affirms the constitutionality of a local tax on hotel rooms. Rejecting the latest bid by 11 local hoteliers to kill the hotel and convention center project, the Commonwealth Court hands a major defeat to the litigants, who repeatedly have lost suits and appeals on their claim that Lancaster County's 3.9% tax on hotel rooms is unconstitutional. (Reported in Lancaster New Era, December 4, 2002.) December 3, 2002 - Lancaster Zoning Hearing Board approves height variance for 14-story hotel tower addition. (Reported in Intelligencer Journal and Lancaster New Era, December 3, 2003) December 5, 2002 — Two days after the Pennsylvania state Commonwealth Court rejected the latest bid by 11 hotelier opponents of the hotel convention center project to kill the project, the same litigants file a new lawsuit against the project, claiming they have "new evidence" that they say the Commonwealth Court would not allow them to present. (Reported in Intelligencer Journal and Lancaster New Era, December 5, 2003) December 6, 2002 — Top Lancaster County and city officials say they are outraged at 11 hoteliers' new lawsuit, filed yesterday, after Commonwealth Court rejects their latest attempt to kill the downtown Lancaster hotel and convention center project. Commissioner Ron Ford says the hoteliers "are holding the people of Lancaster County hostage to their own self-interest.” Chairman of the commissioners, Paul Thibault adds, "They won't stop until they have killed this project ... this has to stop.” (Reported in Lancaster New Era, December 6, 2002) December 10, 2002 — The Lancaster Parking Authority and Lancaster County Convention Center Authority avert a possible parking shortage that the new convention center might have caused in a deal to build $9 million garage at no cost to taxpayers. (Reported in Lancaster New Era, December 10, 2002.) December 27, 2002 — It's a good news and bad news day for the hotel and convention center project. The good news: a request by the Lancaster County Convention Center Authority and the Lancaster County Commissioners to the Commonwealth Court for an expedited hearing of the latest lawsuit by the 11 hoteliers how are trying to kill the project, is granted. The bad news: Drew Anthon, president of the company doing business as the Eden Resort and Suites and James Cosgrove, manager of the Best Western Revere Motor Inn, two of 11 hotelier litigants trying to kill the hotel and convention center project, write letter to County Treasurer demanding refund of their hotel room tax payments. Treasurer says he doesn't have the authority. (Reported in Sunday News, December 29, 2002) December 31, 2002 — 11 hoteliers trying to kill the hotel convention center project file new suit asking Pennsylvania State Supreme Court to review evidence they say has not been considered properly by the lower court. January 2003 — The Marriott Lancaster at Penn Square and Lancaster County Convention Center get the nod from several key city agencies to move ahead These include issuance of the required "certificates of appropriateness" for new construction and related demolition plans. This will allow developers to selectively demolish portions of the buildings behind the facade of the historic Watt & Shand Building while preserving protected historical structures that will be incorporated into the design of the project. The plans were fully supported by the Lancaster City Historic Commission. This followed the early December approval by the Lancaster City Zoning Hearing Board of a height variance for the 14-story tower that will be part of the hotel. In November, Lancaster City Council issued the conditional use permit for the convention center. (Height variance reported in Lancaster New Era, December 2, 2002.) January 2003 — Peter Chiccarine, a consultant for the Eden Resort and Conference Center and a lead litigant in the barrage of lawsuits aimed at killing the downtown Lancaster hotel and convention center project, is asked to halt his group's lawsuits against the convention center and hotel project or resign his seat on the board of the Pennsylvania Dutch Convention & Visitors Bureau (PDCVB). The PDCVB receives more than $2 million annually for tourism promotion provided by the hotel room tax that Chiccarine's group of litigants calls "unconstitutional." January 1, 2003 — In December 2002, in its latest attempt to thwart the downtown Lancaster hotel and convention center project, a group of 11 hoteliers sued the County of Lancaster, the Redevelopment Authority of the City of Lancaster, the Lancaster Convention Center Authority, the Commonwealth of Pennsylvania and Penn Square Partners. In its suit, the group also targeted the Commonwealth’s Department of Community and Economic Development, which provides $1 million annually for Lancaster County tourism promotion. Since March 2000, the group’s claim that the County of Lancaster’s 1999 ordinance, which created a 3.9% room tax to fund the building of a new convention center, violates the group’s Federal and state constitutional rights. The claim has been rejected repeatedly by Commonwealth courts, including the Commonwealth’s Supreme Court. In its January 24, 2003 decision, the Commonwealth Court rejected this latest lawsuit saying, in 27 pages, that the hoteliers have no standing to sue the Commonwealth. Despite this latest suit, the hotel and convention center project is making significant progress. (Reported in Lancaster New Era, December 31, 2002 and Intelligencer Journal, January 1, 2003.) January 5, 2003 — Penn Square Partners has joined with the LCCCA and the Lancaster County Commissioners in pending legal action to be brought under Pennsylvania's Dragonetti Act when the 11 hoteliers trying to kill the hotel and convention center project lose their latest case. The Dragonetti Act allows defendants who win their cases to sue the parties who brought suit against them for damages caused by their "wrongful use of civil proceedings." The law was enacted in Pennsylvania to discourage frivolous lawsuits. (Reported in Sunday News, January 5, 2003) January 15, 2003 — In a press conference, Wendy Nagle, president of the Pennsylvania Dutch Convention & Visitors Bureau calls upon the 11 hoteliers who continue to throw legal challenges in the way of the revitalization of downtown Lancaster to halt their ongoing lawsuits. "The litigation has been an incredible drain on our industry,” she said. In December 2002, the hoteliers filed yet another appeal, this one to the State Supreme Court asking it to throw-out the Commonwealth Court's October 4 decision to deny the hotels an entirely new trial. (Reported in Intelligencer Journal, January 15, 2003) March 14, 2003 — In a one-sentence ruling, the Supreme Court of Pennsylvania deals a fatal blow to the 2000 lawsuit by 11 local hoteliers that challenged the constitutionality of the hotel room tax levied to fund the Lancaster Convention Center and to promote regional tourism. In it’s ruling, the Court rejects the hoteliers’ appeal to the Supreme Court to overturn a Commonwealth Court ruling that denied the hoteliers a new trial. The hoteliers asked for a new trial because they claimed that the hotel and convention center project has changed since the suit originally was filed. According to Nevin Cooley, president of Penn Square Partners, “This ruling essentially means that the fundamental legal issues regarding constitutionality of the tax, due process and the benefit/burden analysis have been fully adjudicated in the courts. We hope this is an indicator of how the local and Commonwealth Courts will view the hoteliers’ most recent attempt to kill the project, a request to allow a completely new lawsuit on the same issues. We believe that you can’t try the same case twice and we think the Courts will agree.” Preliminary arguments in the proposed second trail were heard by Judge Louis J. Farina on March 5 by the Lancaster County Court of Common Please and a decision is pending. (Reported in the Lancaster New Era, March 18 and 20 2003 and Intelligencer Journal March 21, 2003) March 21, 2003 — In a sharply worded, 17-page ruling, Judge Louis J. Farina of the Lancaster County Court of Common Pleas, shut-down the attempt of 11 local hoteliers to re-start their three-year old campaign to kill the downtown Lancaster hotel and convention center project. Just one week ago, the Pennsylvania Supreme Court ended all appeals of the hoteliers’ first lawsuit (see below). Saying that “Litigation must have an end. Plaintiffs have had their day in court,” Farina denied the request for a second trial with prejudice. (Reported in Intelligencer Journal, March 21, 2003.) April 2003 — Architects are directed to re-design the project to reduce construction budget costs both for LCCCA and PSP; Hoteliers appeal the Court of Common Pleas’ rejection of a bid for a second lawsuit. New governor and other elected leaders pledge to resolve PSP’s loss of public financial support. (Reported in Sunday News, April 20, 2003) April 2003 — House Bill 1004 and Senate Bill 554, to avert the potentially devastating impact of a ruling by the Pennsylvania Supreme Court on the use of prevailing wage and the subsequent interpretation of that ruling by the Department of Community and Economic Development (DCED.) These actions could result in the loss of 20,000 existing Pennsylvania jobs and 10,000 new ones. The Pennsylvania Chamber of Business and Industry speaks out in articles in its publications, The Sentinel and The Advocate. May 2003 — A public opinion poll commissioned by the Lancaster County Convention Center Authority among adult residents in Lancaster County shows that:
May 2003 — An anonymous letter attacking the project is delivered to Chamber leaders, others. It is widely seen as attempt to influence the upcoming election of County Commissioners. A Scientific public opinion poll conducted by LCCCA shows high awareness of the project, 2 in 3 say it will help to revitalize the city. (Reported in the Sunday News, May 19, 2003); Revised design of hotel and convention center is unveiled. (Reported in Sunday News, May 11 and May 18, 2003) June 2003 — After three years of appeals, hoteliers say they will not appeal Pennsylvania Supreme Court’s rejection of their first lawsuit but ignore community leaders’ pleas to put an end to second suit. (Reported in the Lancaster New Era, June 16, 2003). LCCCA says it will sue individual hotel litigants under the Dragonetti Act to recover $2 million+ costs associated with hoteliers’ frivolous lawsuits. (Reported in Lancaster New Era, June 16, 2003) August 2003 — "It's history," reported the Lancaster Sunday News, on August 10, 2003; "The 11 hoteliers who once had two lawsuits against the Lancaster County Convention Center Authority [LCCCA] have dropped their latest, ending nearly 3 1/2 years of litigation.” Representatives of the former litigants said that the hoteliers were "forced" to withdraw their latest lawsuit because of legal action the LCCCA had promised should the hoteliers' latest attempt to thwart the convention center project be struck down, as was the first suit. City and County officials interviewed for the same article expressed decidedly contrary opinions; the mayor added that his personal ban on attending events at litigants' facilities would end. Expressing cautious optimism on behalf of Penn Square Partners, Nevin D. Cooley, president of Penn Square General Corp., a High Industries affiliate and the general partner of Penn Square Partners, said: "Obviously, this is a good event for us and the entire community. A key road block to progress has been surmounted and we can now focus on the work at hand: developing an upscale, full-service hotel and a world-class convention center."
September 21, 2003
— Today's Lancaster PA Sunday News features a series of
related articles examining the October 29, 2003 — In a two-to-one vote today, the Lancaster County Commissioners approved partial County backing of a bond that will be offered by the Lancaster County Convention Center Authority (LCCCA). The bond will finance construction of the planned 80,000 square-foot convention center that will be linked with Penn Square Partners' Marriott Lancaster at Penn Square in downtown Lancaster. The County's backing for the bond will allow LCCCA to obtain more favorable rates on the bond issue and, thus, save money and interest over time. At the meeting during which the vote was taken, business, civic, government leaders and others argued forcefully that the County's support of the bond is crucial to funding the convention center's construction as it currently is designed. As designed, the convention center would be a unique "product" in the region, critical to success as a convention destination and, thus, to the revitalization of downtown Lancaster.
Year 2004
March 16, 2004 — Pennsylvania Governor Ed Rendell releases a
$15 million grant to the Lancaster County Convention Center
Authority, saying that the convention center and hotel project
“promotes the rich tourism industry in Lancaster County and also
stabilizes an entire community.” Dave Hixson, executive director of
the Lancaster County Convention Center Authority, says the grant “is
an essential part of our financial package.” The grant, approved by
former Governor Tom Ridge was released through the Department of
Community and Economic Development. (Reported in Intelligencer
Journal, March 17, 2004.) June 17, 2004 — The Lancaster County Convention Center Authority and the Lancaster Parking Authority executes an agreement that will provide adequate parking for the new Lancaster County Convention Center Authority. Resolving parking was a key issue delaying further design of the project. As a result of the agreement, Penn Square Partners and the Lancaster County Convention Center Authority authorize additional architectural drawings for this key downtown Lancaster revitalization project. September 14, 2004 — Revised models and floor plans for the hotel and convention center are unveiled at a meeting of the Lancaster County Convention Center Authority. November 11, 2004 — “It’s as solid as it gets.” Senator Gib E. Armstrong assured the Lancaster County Convention Center Authority that a $22 million funding gap in the hotel and convention center project will be filled from several state sources. These include an innovative Tax Increment Financing plan that will allow the project to reinvest its sales tax revenues in the project, a $6 million pledge from Gov. Ed Rendell and other sources. “I have their commitments,” he said. It’s as solid as it gets.” (Reported in the Intelligencer Journal, November 11, 2004.) December 16, 2004: Financial and Business Structures Approved The Lancaster County Convention Center Authority board approved the financial and partnership structures that propel this vital downtown revitalization project to the next stage. More>>
YEAR 2005 February 24, 2005: The Redevelopment Authority of the City of Lancaster recommended creation of a Tax Increment Finance District (TIF) for the Marriott Lancaster at Penn Square and the Lancaster County Convention Center, to qualify project for state Act 23 funds. More >> March 16, 2005: School Board rejects TIF proposal. Read local news coverage, "Downtown project in trouble after SDL rejects tax deal; Developer says district vote 'stops' Penn Square venture." Read Penn Square Partners’ response. March 28, 2005: Alternative to TIF plan proposed by City, State officials. Read local news coverage. Read Penn Square Partners’ response.
April 2005
YEAR 2006 Since April 2006, the project's history has been maintained as a local news archive. For current news and archives between April 2006 and the present, please visit our current news page.
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