CINCINNATI — Downtown Cincinnati businesses are volunteering to add an additional tax to help fund a new hotel at the city's convention center, a move that passed Cincinnati City Council unanimously Wednesday.
The proposal, through 3CDC, would see businesses in the Downtown Fountain District opt in to contribute 1% or one cent of every dollar to the construction of the new Marriott convention headquarters hotel. It's called the "Convention District Community Authority."
The voluntary tax is expected to generate at least $1.1 million annually until the convention center renovation is complete.
"This is necessary to fund the hotel," said Jeff Cramerding, Cincinnati City Council Budget and Finance Committee chairman. "It's great news that they're voluntarily opting in. It shows how important they think this project is."
The tax zone covers businesses from Central Avenue to Main Street and Third Street to Seventh Street. Only restaurants and bars that choose to participate will collect the fee, though any business within the district boundaries can opt in.
Five Iron Golf, an indoor golf facility on Fifth Street, exemplifies the type of business affected by the convention center's closure for renovations that began in the summer of 2024.
"With the convention center shutting down, we definitely took a bit of a hit," said J.W. Miller, general manager of Five Iron Golf.
The facility offers customers access to over 600 virtual golf courses while they eat and drink, representing the type of entertainment venue that has helped transform downtown Cincinnati.
Miller, whose New York-based company was recruited by 3CDC to help revitalize the Fifth Street corridor, sees the tax as a potential investment in the district's future.
WATCH: One downtown business discusses the new surcharge and their hopes for business development:
"As we're growing here, this is turning into a nice little district right here," Miller said. "It's a little entertainment sort of setup. We're one of the first companies to be on Fifth Avenue here."
However, Miller wants to see more specifics about how the tax revenue will be used.
"I want to see more of what's actually detailed and what actually comes out of it and what's going to benefit all of us," he said.
Despite his questions, Miller said he supports the concept if implemented properly.
"It can be a good idea if it's done correctly," he said. "Basically, it allows the company to buy into what they're actually doing."
The project is a key component that city leaders say is necessary to attract major events and conferences back to Cincinnati's urban core.
The voluntary nature of the tax distinguishes it from traditional municipal fees, allowing businesses to choose whether to participate based on their own assessment of the project's potential benefits.
The tax will remain in effect until the convention center renovation is fully complete, providing a dedicated funding stream for the hotel component of the larger redevelopment project.
