Originally the facility was estimated to cost a little over $59 million, but the cost rose to $62.7 million after the governor vetoed a bill that would have cut construction costs by about $2.5 million, and lately the price tag went up to $63.5 million due to increased labor and insurance costs.

City officials expressed disappointment following the announcement, but were not surprised given current economic forces. The center was part of a three-prong, $80-million project, which also includes a 174-room hotel and 28,000-sf convention center. City officials had hoped the new facilities would attract tourists and help the city compete for small- to medium-size convention business.

Suggesting the city may revisit the idea of an events center at a later date, Mayor Royce E. Pollard indicated that the city now plans to move ahead with the hotel and convention center, which would be build just south of Esther Short Park. Renaissance, which is reportedly close to closing a deal to finance the remaining parts of the project, would continue as the developer.

The city, however, must get the project under way before January 2004 to take advantage of an estimated $425,000 in state sales tax credits that have been earmarked for the project. After that date the funds will go away.