An ongoing operating subsidy has become the proverbial "fly in the ointment" for Jefferson City's plans to attract a conference center.
The two remaining developers that have submitted proposals unveiled details at a public session on Thursday. Neither ruled out the potential need for an operating subsidy from the city - which some council members have attempted to avoid.
The need for an operating subsidy also was among the reasons a third developer cited in withdrawing its proposal from consideration.
An operating subsidy is not the only disconnect between the city and the developers.
The city requested development plans for a facility with 30,000 square feet of exhibit space with an accompanying 200-room hotel.
Both developers deemed the request unworkable and proposed downsized projects.
Farmer Holding Company, a local developer, proposed a 20,000-square-foot facility with a 126-room hotel at the Capital Mall, which it recently acquired.
Ehrhardt Hospitality Group, based in Hannibal, unveiled a proposed 22,500-square-foot facility. The concept shows a 200-room hotel, but the developers favor a structure with 150 rooms.
Farmer Holding projects costs at $25 million, Ehrhardt at $36.8 million. The city has committed up to $9 million in lodging tax revenues for construction.
Negotiations are the obvious next step.
Each step forward, however, makes retreat more difficult - even if retreat remains the wisest course.
Elected city officials have an obligation to look ahead - at both best-case and worst-case scenarios.
A best-case scenario is a thriving conference center that enhances economic development and rewards private and public entities.
Worst-case scenarios revolve around a money-losing conference center that must be vacated or infused with a perpetual subsidy of city tax dollars.
The emergence of a subsidy is a signal to city officials to proceed with caution.