HomeMy Public PortalAboutORD12499 i
BILL NO. 96-52
BY COUNCILMAN Vincent
SPONSORED
ORDINANCE NO.
j AN ORDINANCE OF THE CITY 0 EXECUTEONAN MISSOURI,
AGREEIMENTI�WITH N PRICE
MAYOR AND CITY CLERK
ONVENTION CENTER FEASIBILITY STUDY.
WATERHOUSE FOR C
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
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FOLLOWS:
Section 1. The Mayor and City Clerk are hereby authorized and directed to execute
an agreement with Price Waterhouse for Convention Center Feasibility Study.
Section 2. The agreement shall be substantially the same in form and content as
that agreement attached hereto as Exhibit A
Section 3. This Ordinance shall be in full force and effect from and after the date
of its passage and approval.
Passed: Approved: �-
.. � I�/����/�♦�•V✓fill[L h
Pr iding Officer Mayor
APPROVED AS O FORM:
ATTEST: ff
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City Cle City Counselor
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Convention/Civic Center Study k ;
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t- :1 June 11,1996
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Presented by: `
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t1r y }FS'+tRt�sitt(t t{, S i f J Ci0nt8CL David C.Petersen,Managing Director ;; t °trLL�+ sx 4r�1r Fyt '
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JEFFERSON CITY
M�- Table of Contents
E Our understanding of Your Objectives .... ......... ...................................... 1
Scope of Services .... .. ............. .. ....................... .... ......:........... 1
ri
Proposed Work Program ..... .. ....... ......... 2
Phase I-Market Analysis .. .. ......... .. ....... .................. .. .................. 3
1 Task LA-Study Team Orientation and Work Session 1 ....... .... ........... ....... 3
Task 1.8-Local Venue Inspections and Business/Civic Leader Interviews .............. 3
Task I.0-Evaluate Candidate Sites .......................... ........... 4
i Task I.D-Economic and Demographic Characteristics .......... .................. 4
{
Task LE-Evaluate Competitive or Comparable Centers .......... .................. 5
Task I.F-Interview Major User Groups and Event Promoters ...... .................. 6
Task I.G-Describe Cost-Effective Building Program............... ................ 6 1.
Task I.H-Estimate Future Occupancy and Attendance ............................ 7
Task 1.1-Progress Report and Work Session 2 .................................. 13
}
1
Phase 11 Financial Viability ................................... ....................... 8 "
Task ILA-Operating Revenues and Expenses ............ ....... ................ 8
Task 11.6-Economic and Fiscal Impact Analysis . 8
Task ILC-Final Report and Work Session 3 .............. ....... ................ 9 '
Price Waterhouse Qualilicalions .............. .. ..... ........... .. ..... .. .............. 9
4
ProjectReferences .. .. .. ......................... ........... .. ..... .. ............. 13
,
Project Stab t
c
Time and Budget Requirements.......... ......................... ...............
..... 21 f ,
Engagement Terms .. ............................................
22
1 d'
Authorization to Proceed ............... ............................................. 23
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Suite 2600 Telephone 013 223 7577
400 North Ashley Street
P.O.Box 2640
t Tampa,FL 33601.2640
Price Water house.LLP
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June 11,1996 e
City of Jefferson
Purchasing Agent
320 East McCarty Street
{ Jefferson City,Missouri 65101
re: Proposal 1639-Update of Convention Center Study
The Price Waterhouse Convention,Sports&Entertainment Group(the"PW Group')is pleased to
respond to your request for this proposal to evaluate the need for a convention/civic center in
Jefferson City,Missouri. This proposal includes our understanding of your objectives,proposed
scope of services,our qualifications to conduct this study,project staff,time and budget
requirements,engagement terms and authorization to proceed. If you believe a modification to
our proposal would better suit your needs,we would be pleased to discuss this with you.
I
Our Understanding of Your Objectives
1 ..
- The City of Jefferson(the"City")has requested a proposal to evaluate the financial and usage f
characteristics of a convention/civic center facility. In 1988,the study commissioned the firm of
Laventhol&Horwath to conduct a two-phase study of such a facility,including Market Analysis and
Financial/Economiclmpact. It is our understanding that the City is seeking proposals to update 4
these studies and provide information regarding market demand/usage characteristics,building
program requirements,financial operating characteristics,and economic/fiscal impacts.
iz
Scope of Services
The following work program includes three work sessions to provide maximum interaction and ;
communication between the PW Group and the City.
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1` Proposed Work Program l
Esllmstsd Wsora to Complete
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Plan 1:MUMIN irtis
LA .Orientation 6 Work Session 1 W W•WorkSsnbn
I.e -Local Venue Inspections 6 0.Draft Repod
+1 ausineseCMc Leader Interviews F' aepoN ,4
LC Evaluate Candidate sites
I.D •Economic Characteristics of Markats
LE -Evaluate Compot WeiComparable Ctrs.
LF •interview Mal Promoters
I.G •Describe Cost-affective aulkiing Program i
I.H -Estimate Occupancy 6 Attendance
I.
I.I .
Progress Report&Work Session 2 0 W
plan II:Flrancla lbblllty a Davobprnent Planning
IIA-Operating Revenues b Expenses
11.9 - Economic 6Flscal Impact Analmis
II.0.Final Report b Work Session 9 11 F
The scope of services is two-phased. The Phase I market analysis measures the level of demand
for a new Convention/Civic Center("Center'),evaluates alternative Center sites and provides
recommendations for a cost effective building program. Phase II estimates the economic viability
of the project based on estimates of financial operations and economic and fiscal impacts. At the
conclusion of Phase I,a work session will be held to provide a full presentation and discussion of
the findings. This information will assist the City by providing the information necessary to decide t
whether or not to proceed with Phase II. The proposal is designed to enable the City to authorize
Phase I independently of Phase 11.
The Phase I scope of services includes:
• Evaluation of 2 to 4 candidate sites identified for the proposed Center;
• Assessment of the current and estimated potential City of Jefferson convention/meetings �.
market;
• Estimates of future levels of market demand for conventions,trade shows,consumer shows
and local events(meetings,banquets,spectator events,etc.)which could be attracted to a
new Center;and
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Description of a cost-effective building program which enables the City of Jefferson to
• compete successfully for additional,as well as larger events than those which can currently
be hosted.
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City Jefferson
Page 3
If,after Phase I of the analysis,the City chooses to continue with the study,Phase II will consist of
the following services:
• Estimates of financial operations(operating revenues and expenses)for the proposed
Center;and
Quantify oconomic and fiscal impacts resulting from new or increased event related spending F
based on estimated utilization of the proposed Center.
Phase I-Market Analysis
—1 The market analysis will evaluate the current and future potential levels of demand for conventions,
1 trade shows,public/consumor shows,local meetings and spectator events in Jefferson City.
Based on this evaluation,we will identify the a cost-effective building program for a new Center,
-1 and will estimate the Center's occupancy,attendance and event mix. Several analytical techniques
are included in this analysis to provide s balanced and stable foundation for preparing re//ab/e
estimates,based on reasonable circumstances.
• Task IA- Study Team Orientation and Work Session 1
Within ten days following receipt of authorization to proceed,the PW Group will meet with the
City to:
- Review and refine the proposed scope of services and work program;
Identify PW Group and City contact persons;
Establish dates for delivery of draft reports and future meetings;
- Identify
Prior relevant studies and reports including Laventhol&Horwath's 1988 study
a --� Multiple purpose convention/special event center sites 4
Lists of key persons to be Interviewed
Data available from local sources I
Planned additions or expansions to lodging and meeting facilities
Past"turn-sways"and lost business reports
Proposed or committed related/support development(hotel,retail,
parking/transportation improvements,etc.)
1 Task I.B- Local Venue Inspections and SaWness/Civic Leader Interviews
J ,
The PW Group will conduct interviews with officials from the Jefferson City Convention and
Visitors Bureau(CVB),Chamber of Commerce,City/local government,planning agencies,
restauranVretail associations,managers from major meeting hotels and other local event
promoters. During these interviews,the PW Group will ohtain an understanding of community
and industry leaders'opinions regarding the study effort,data availability,anticipated growth
in hotel room supply and hotel room rates/occupancies, Existing area meeting,trade show
and spectator event facilities,such as hotels and other facilities will be inspected at this time,
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The Inapoctlorytour of the potential Center sites suggested in Task LA will also be conducted i
by the PW Group at this timer
l Task LC- Evaluate Candidate Sites
Two to four potential altos(from the list of candidate sites provided by the City)within the City
»� will be Identified as being favorable for conventiontspecial events center development in
torrnn of the following"critical success"factors:
Silo size and configuration;
Visibility;
= Vehicular and pedestrian access;
Proximity to parking facilities;
Proximity,to hotel facilities; i
= land availability nearby for future hotel development and facility expansion;and
Proximity to entertainment,restaurants,attractions.
Those potential sites will be ranked in terms of the above criteria. This analysis will provide the
City with a rocomrnondation or ranking of convention/special events center sites in terms of
Center marketability. This to:k will be a collaborative effort,including staff members of City,
CVD,PW Group and local planning staff,as appropriate. The site identification procedure,at
thin level of analysis,will not take into consideration criteria not listed above such as land
value,subsurface conditions,zoning,etc.
• Task 1.0-Economic and Demographic Characteristics of Markets for Events at the Center
Relevant event market characteristics and trends which would support the wide spectrum of
events in a now Center will be evaluated. These include: t
Hotel room supply and availability;
- Employment and commercial activity/trends;
- Regional economic diversification/specialization;
Population(age,Income,growth);
Accessibility to attendees via highway and air service;and
- Attractions(museums,retail shops,restaurants,etc.). ( r
This information will be assembled and evaluated to measure Jefferson City's spectator event j
and local market support for a now convention/civic center. t' `
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Task LE- Evaluate Competitive or Comparable Centers j
Jefferson City's current or estimated future competitive and comparable facilities will be
identified.
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j - CampeflUve facilities will be those which would compete with the proposed Center for
conventions,trade shows,consumer shows and local mooting and spectator events.
Competitive facilities will be identified based on facility size,discussions with CVB, j
j Chamber of Commerce,managers of major hotels,potential user groups,local/regional
promoters and our past experience with civic and convention facilities In communities
with similar locational characteristics.
-
Comparable facilities will be centers in markets similar to Jefferson City in terms of
convention and community resources(hotel room supply,highway and air accessibility,
climate,nearby attractions,restaurants/entertainment,population,etc.).
Competitive and comparable facilities and the characteristics of their destinations will be
evaluated(as information is available)in terms of:
Local event market population;
Hotel room inventory;
Building program(exhibition or floor space,meeting rooms,assembly and banquet
- facilities,seating capacity);
Types and numbers of events;
Occupancy(usage for conventions with exhibits,trade shows and local meeting and
spectator events);
1 Attendance averages and ranges for various types of major events;
Effective rental rates;
-y _ Marketing budgets(CVB and center);
Jf Food and beverage facilities and services;
Staffing,management and organizational structure;
competitive facilities for local and civic events;
- Future planned or anticipated changes in building program;
- Resources and amenities available in the communities in which these facilities are
located(hotel room supply,highway and air access,population base,attractions,
climate,proximity to major metro center,etc.);and
Other factors critical to the success of the center in expanding market shares or
improving financial operating performance. These factors may be unique to the center
management,operations or physical configuration. j
Information will also be gathered from existing Price Waterhouse data bases,local interviews
i
t ^, (Task I.B),user group/promoter interviews(Task I.F),recent studies,industry surveys and
J current directories. Since data collected for Price Waterhouse annual industry reports
pertaining to effective rental rates,occupancy and attendance is gathered on a confidential
basis,it will be disclosed in our report by grouping or coding responses to avoid disclosure of
{ ' individual center performance. Otherwise,the information will be summarized to compare
and contrast Jefferson City to the various features,characteristics,advantages and ;
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disadvantages of each competitive and comparable center and the characteristics of its
i location.
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Task I.F- Interviews with Trade Show Producer.,Association Executives and Spectator Event
Promoters
I
! Existing Jefferson City potential user groups will be surveyed to identify:
i )relevant to the area's comparative attractiveness as a meeting,convention and qualitative
pectator issues
event destination and(2)specific user needs. Groups contacted will include state and
regional conventions and meetings,regional trade shows,social/military/educational/
religious/fraternal(SMERF)groups,consumer shows,corporate meelings and promoters of
major touring and local spectator events. Contact names will be obtained from Jefferson
City's CVB/Chamber of Commerce,state association directories,other local sources,and i
competitive facilities'past and current event calendars and various industry directories such
as the State of Missouri's meeting manager directory,Directory of Conventions and Trade
Show Week DataBook. The following information will be requested:
- Current and future center requirements(exhibit floor space,spectator seating,meeting
rooms,banquet space)and destination requirements(DMA population,hotel rooms,
highway and air access,etc.);
= Locations of past three to five events;
Rotational patterns;
Strengths and weaknesses of destinations/centers selected for past 3 to 5 events
- compared to Jefferson City;
Food and beverage function requirements;
Reasons for selecting/not selecting centers and destinations for their meetings
exhibitions or spectator events;and
- Other requirements and criteria for selecting or not selecting Jefferson City as the
- location for their event.
This information will be evaluated to understand,among other things,the level of demand for
competitive centers,Jefferson City's competitive strengths and weaknesses and user needs. i
The responses will be summarized to show response type and distribution as well as
important qualitative comments. y
• Task LG- Describe Cost-Effective Building Program
`j The PW Group will describe a building program based on the level of demand estimated for
conventions,trade shows,consumer shows and other local/spectator events, This building i
program will provide spaces to meet the needs of most events which cannot be
accommodated in existing Jefferson City facilities and if cost effective,allow for simultaneous
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1 center use by two or more groups. This building program will be expressed in terms of:
Exhibition space(size,ceiling height,utilities,floor load,column spacing); �
Meeting rooms(size,number of rooms); f
Assembly/banquet space(size,configuration);
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City Jefferson
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- Spectator seating capacity;
J _ Concession facilities(points of sale);
Locker/dressing rooms;
- Kitchen prep or catering requirements(location); '
- Lobby and registration areas(size/configuration/location);and
- Other building spaces(service corridors,storage,office space,etc.). �.
The recommended building program will be based on the effectiveness and"lessons j
learned"by successful centers,anticipated uses and responses to specific questions j
pertaining to building program and configuration in the user survey and interviews with other
convention/special events center managers, These questions will focus on: j
Relationship of various building areas to each other and effect on crowd flow;
Ability for visitors to orient themselves to building area locations(e.g.,locate meeting
rooms); I
J - Adequacy of various building area sizes(entry lobby/registration area);and
Access to ballroom-type space for groups attending events which are not associated
^-t with convention meetings or exhibits,
J Task LH- Estimate Future Occupancy and Attendance y
Tasks LA-I.G findings will be evaluated and future occupancy and attendance will be I
estimated for the Center for a stabilized year. These estimates will be based on;
- Site location criteria and candidate sites; '
Changes in supply of competitive facilities and space;
} - Growth in demand for convention,meeting and spectator event space;
_ Advantages and disadvantages of Jefferson City relative to its competitors;
Jefferson Citys community resources(highway and air access,hotel room supply,DMA
- population,attractions)relative to competitive destinations;
- Performance of comparable and competitive centers;
Estimates of future growth of population and hotel room supply,if available;
Planned or committed additions to the hotel room supply;and
Existing level of economic activity in the Jefferson City area and growth trends.
J
Utilization estimates will be expressed in terms of annual occupancy and attendance ranges t
for conventions/trade shows and consumer showsAocally-supported events(i.e.resident
market),as well as for spectator events. Estimates will be shown in a tabular format
illustrating number of events or performances by type of event and attendance,
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Task 1.1- Progress Report and Work Session 2
Results of the Task I.A-I.H analyses will be presented in a progress report to the study
4 manager approximately eight weeks following Work Session 1. The market demand anayais k°
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findings will be presented with appropriate supporting statistical data(charts,
graphs and f
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City Jefferson
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1
„I tables)to support the findings and conclusions. During Work Session 2,the PW Group will
discuss the recommended building program and utilization of the proposed center.
Phase II—Financial Viability
1 The Phase II work program will provide the information necessary to gain an understanding of the
proposed project's financial viability. I
• Tack IIA- Operating Revenues and Expenses
I. :.
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Estimated operating revenues and expenses for the proposed Center will be prepared for a f
stabilized year. These estimates will be based on estimated utilization,building program,
financial operations of comparable centers adjusted for the recommended building program,
estimated level and type of usage,estimated occupancy and attendance and local area �.
costs. Financial operations will be expressed in the following format:
- Operating revenues
Rental
Event services
Catering and concessions
Parking
- Other revenue
Operating expenses
Salaries,wages and benefits
i
J Utilities
Insurance
Supplies and repairs
°I Other expenses f t
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Estimates of financial operations will be expressed in constant,1996 dollars.
• Task II.B- Economic and Fiscal Impact Analysis
The economic impact of a multipurpose center on Jefferson City,Cole County and the State
of Missouri will be estimated in terms of spending by attendees at conventions,trade shows
r
and spectator events(which could otherwise not be accommodated in existing facilities 1.
because of space requirements or scheduling conflicts).
Spending by event attendees could be measured in terms of direct or'Yirst round"spending
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ti as well as the"multiplier effect"tram subsequent rounds of spending. The total benefits(initial
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and subsequent)will be shown in terms of:
- Jobs x
t Income/payrolls
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June 11,1996
City Jefferson
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The relative magnitude of fiscal or tax impacts from this spending will be illustrated by
J showing the increased tax revenues from sales,hotel sales and income/payrolls for City,
County and/or State governments.
�1 +
Economic and fiscal impacts will be based on estimates of spending by Jefferson City event
attendees including delegates,accompanying persons,exhibitors and association/show I c
management. This data may be based on information obtained from the International j +
Association of Convention&Visitor Bureau 1993 Delegate Spending Survey adjusted for
Jefferson City's comparative travel costs and inflation.
� i
Estimates will be presented for tax benefits during construction and a stabilized year of ;
operation. The two or three largest tax revenues will be measured(e.g.hotel tax,retail sales
tax,payroll tax,etc.)for the City,County and/or State. Comparisons will be prepared showing
estimated annual increased benefits/taxes and annual increased net operating costs/debt
service. We would work closely with City/County finance advisors and a leading national civic I
center designer and builder to obtain their estimates of appropriate unit costs,other
development costs and financing costs,respectively.
• Task ILC- Final Report and Work Session 3
At the conclusion of Task ILB,approximately four weeks after your approval to proceed with
` Phase 11,the PW Group will prepare a draft final report which describes the methodology,
conclusions and recommendations, This report will contain sufficient statistical
documentation to support our findings.
Following receipt of the draft final report,the PW Group will meet with the City to present and
discuss the analysis and obtain comments on the draft final report. Approximately one week
t following our receipt of your written comments,the final report will be delivered to the City.
Price Waterhouse Qualifications
J
Price Waterhouse is committed to providing the ideas,information and advice that will help clients
-1 make better business decisions. Through a global network of firms practicing in 118 countries and 1 `
_ territories,Price Waterhouse professionals work together to provide accounting,auditing,tax
planning and compliance,management and technology consulting,litigation support and business r
advisory services to corporations,individuals,nonprofit organizations,and government
J departments and agencies. The U.S.firm—Price Waterhouse LLP—with 106 offices and 13,000
men and women,is a vital part of the Price Waterhouse worldwide network.
The firm's goal is to serve clients whose primary needs are:
• Credibility and objectivity,
• Client service,and ' }
Worldwide reputation. ;r
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City Jefferson f .
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Fortune 500 executives were recently asked to rank the Big 6 accounting firms in various
categories. On a scale of 1.10,survey participants ranked Price Waterhouse highest in ethics;
Price Waterhouse's score of 8.5 was the highest individual firm score in any category.
Price Waterhouse serves more audit clients in the Fortune 100 and the Forbes 100 Largest
Multinationals than any other Big 6 firm. Regarding combined sales of clients,Price Waterhouse ".
ranks first with$497 billion,representing 30%of total sales among the Fortune 100 Industrials. No
Big 6 firm is more strategically focused on and organized to serve multinational companies than
Price Waterhouse.
i
A selection of our firm's largest industry clients include:
• Alcan Aluminum Goodyear Tire and Rubber
• Amoco Hewlett-Packard !
Anheuser Busch IBM
Bausch and Lomb MCA-Universal
• Bristol Meyers MCI Communications
Chevron 0 Paramount Communications
o Eastman Kodak Seagram
E.I.du Pont de Nemours Shell Oil f"
• Exxon The Walt Disney Company-ABC
7D • F.W.Woolworth W.R.Grace
Price Waterhouse ensures the continuity of its reputation through its program of recruiting the Best
and Brightest. The results of this program are borne out by objective measures. As noted in a
survey published in the trade magazine,Professional Services Review,"a greater percentage of
[PWJ hires are the top students from the top schools than any other firm." t
The firm's achievements for quality work have been recognized by its peers. In 1990,Price
Waterhouse achieved an unprecedented accomplishment: We were then and remain today the
first and only U.S.firm to have undergone a peer review resulting in an unqualified opinion and no
" J letter of comment. Hailed as a"historic"event by a member of the profession's Public Oversight
Board,this landmark accomplishment set us apart as the quality firm and demonstrated our I r
71
commitment to the highest standards of professional excellence. I `r
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In 1993,history repeated itself. As in 1990,our 1993 peer review,conducted by Deloitte&Touche,
has once again resulted in a clean opinion with no letter of comment. It is particularly rewarding to
j have the firm's impressive performance acknowledged by our peers—not once,but twice. We
take pride in this achievement,and,at the same time,recognize the need to intensify our efforts to
ensure that we maintain this standing.
In 1995,industry client satisfaction surveys published by The Emerson Company rated Price
Waterhouse as the overall leader among the Big 6 In several industries. Price Waterhouse was ;r
rated number one,or tied as the leader,in the banking,high technology and retail industries.
` Despite having less market share than its competitors,Price Waterhouse rated highest because of
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June 11,1996
( City Jefferson ,
Page 11
Price Waterhouse's overall level of client satisfaction,as well as its margin of leadership over the
other Big 6,was most apparent in the banking industry. The firm's strategy focuses on the top 100
financial institutions worldwide,providing a competitive advantage in terms of achieving high levels
of client satisfaction,
�J Price Waterhouse Convention,Sports& Entertainment Group
Price Waterhouse recognizes that Jefferson City requires a comprehensive,thoughtful analysis in i
order to make a final decision on whether to develop a new multipurpose convention/civic center.
We believe the Price Waterhouse Convention,Sports&Entertainment Group is most suited for this
engagement for the following reasons.
1. The Price Waterhouse Convention,Sports&Entertainment Group is devoted exclusively to the
.-) economic analysis of public assembly facility development and operations and specializes in:
" - Market Demand and Utilization Studies
Development Plans and Building Programs
- Site Evaluation and Ranking
- Financing and Funding Plans
- Development Strategies and Planning ,
Management Operations and Analysis
Marketing Program Evaluation
- Economic and Fiscal Impact Analysis
2. David Paterson,the Group's Managing Director,Is the national and international expert In
convention/civic center development and operational consulting services and has more than thirty
` .
n years of experience in providing financial and development advisory services,
He is the author of Convention,Sports and Entertainment Centers,published by Urban Land
Institute in April 1996. Mr.Petersen's articles have been published in Convene,Conferences,
J Exhibitions&Incentives International,Amusement Business,Practicing Planner, Urban Land
and Tradeshow Week. Some of the organizations he has addressed include the International
City Managers Association,Japanese National Tourist Organization,International Convention
j Center Conference,Urban Land Institute and international Association of Auditorium
Managers.
z t -•� i,
Having served as Executive Director of Lexington Center(Kentucky)during its planning,
design,financing and construction period,Mr.Petersen has the"hands-on"experience and
insight necessary to recommend the most appropriate building program(from a market and
operational standpoint). f
f
i 3. Mr.Petersen will be the primary contact and will be personally Involved with all aspects of the study.
Price Waterhouse recognizes the importance of this study and how it may impact Jefferson
City s future. We believe it is important for Mr.Petersen to actively participate in all phases of
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4 June 11,1996
City Jefferson
Page 12
the engagement. Mr.Petersen will be your primary contact,will attend all work sessions and
i
will be easily accessible throughout the course of the study.
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4. Data Base and Building Files
Price Waterhouse maintains current records on building floor plans,financial data and city
information for nearly every major facility in North America.
5. Convention Center Annual Report
-� By conducting an annual survey of every primary convention center with over 100,000 square
feet of exhibit space throughout the United States and Canada,Price Waterhouse
understands market and financial conditions of convention centers throughout North America.
Our annual Convention Center Industry report provides information on convention and trade
show occupancy,attendance,food and beverage per capita sales and effective rental rates.
A copy of our 11 th annual edition is included with this proposal,
6. Professional Conferences and Seminars
Our staff address five to ten professional associations annually on subjects associated with
planning,development and operation of public assembly facilities. These groups include
International City Managers Association,National Conference of State Legislators Annual
Conference,International Association of Auditorium Managers,International Convention
Center Conference,Association Internationale des Palais de Congrbs,the Urban Land
Institute,Japan National Tourist Organization and others. The active involvement of our staff
in the activities of these organizations keeps us abreast of industry trends,facility ,
development and related information. r
We hope you agree that Price Waterhouse Convention,Sports&Entertainment Group's experience
in convenbon/civic center planning and development,along with our understanding of your needs, i
makes Price Waterhouse the most suitable firm to conduct this engagement. Our references
follow. f
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June 11, 1996 I
City Jefferson
Page 13
Project References
JConvention/Civic Center Experience In flogional Markets
Years In Which
Client/Contact/Telophone Services Were Provided Services Provided
� yr .
City of Del Rio,TX 1995 Market,financial and economic
Gus Pappas impact study for civic center
(210)774-8558
expansion,
Oregon Convention Center 1995 Market financial and economic/
-1 Portland,OR
Jeff Blosser fiscal analysis for expanded center.
�
(503)235-7575
City of Cincinnati,OH 1994 I
Stuart Brown Market,financial and economic/
(513)352-3950 fiscal impact analysis for expanded
Sabin Cincinnati Convention Center,
Conference&Visitors Bureau, 1993-1994 Market,financial and economic/
Montgomery County,MD fiscal impact study of proposed
Connie New
(301)428-9702 convention center
City of Visalia(California) 1994 Economic and fiscal impact study
Wally Roeben for Visalia Convention Center
(209)730 7000
S Spokane Center 1993 Market and financial study of
Mr.Michael Kobluk
(509)353-6500 expanded convention center
Yuma Civic and Convention 1993 Evaluate need to expand center and
Center(Arizona) recommend building program
Suzanne Murray
(602)344-3800
r"
First State Canter 1992 �
a (Wilmington,Delaware)
Economic and fiscal impact study
—�
J.Brian Murphy for proposed convention center
J (302)571-4169
Brownsville Event Center 1992
(Texas) Estimate utilization and financial
Andrew Vega operations and recommend '
,t
(512)548000 building program
Dekalb County Convention&
1990 Market and financial analysts for
Civic Center(Georgia)
f proposed convention center
Mr,Bill Hardman t« `
(404)378-25254 y
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yJ. rrro f� a�r f7 — ...w.w.,,.„,,. r. ^^ r•,.-......., ...........--.......,.,,,„�,we�s:iv:t��°3.cZ��`ti tc. t i:.'`� h,i Kt `I
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June 11,1996 _
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Page 14
;t Washington$late Convention 6
1989 Analysis of development process
`1 Trade Censer and performance of center i
John Christison
(206)447-5000
J tflverside Convention Center 1989 t demand for expanded r
(California) ^
1 George Condos convention facilities r
4
(714)787-7950 i
Charlolle Convention Confer
1889 Market and financial analysis for
Jane Richards
(704)332-5051 expanded convention center '
City of Lubbock(Texas) 1991 �.
l Rita Harmon Analysis of civic center expansion
(806)762-6411
Arlington Convention and 1992
Visitors Bureau(Texas) Evaluation of alternative forms of
Charles Kiefer organization
(817)459-6106
Memphis Cook Convention 1994
�.'.✓ Center,TN Market and financial analysis for
Douglas Tober expanded center
(901)576-1230
Ocean Center 1987 Market and financial analysis for
(Daytona Beach,FL)
y Tom Kelly Ocean Center
(407)442-4984
` t
Project Staff ,
The professional staff selected for this engagement have extensive experience in conducting
economic and development planning studies for convention/special event centers. This staff
` ! recently completed studies for planned convention/special event centers and expansions of
existing centers in Portland(Oregon),Mansfield(Ohio),Montgomery County(Maryland),Del Rio
(Texas),Memphis,Boston,Atlanta,Cincinnati,Spokane and San Diego.
7 '
David C.Petersen,Managing Director of the Price Waterhouse Convention,Sports&
Entertainment Group will provide the overall direction and management of the project. Mr.
Petersen has over twenty-five years experience in providing consulting services for central city }
revitalization strategies,municipal financial planning and sports and convention facilities l ` '
� development planning. His experience includes market demand and utilization studies, °1
'°rs+ development strategies,financing and funding
• 9 g Pions,management/operations analysis,
tE expansion planning and economic impact analysis. He served as consultant to the City of
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t£i'f.1ty ` r! t J r j :r t 'u.. .
.'11 Lexington,Kentucky and later became executive director of the Lexington Center Corporation,
t . a public/private mixed-use development which includes an arena,convention center,theater. ,:-:;I`f ``'
I I hotel and retail space, t
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• Robert V.Canton,Senior Manager of the Price Waterhouse Convention,Sports&Entertainment .
Group will serve as project manager. Mr.Canton's experience includes nine ears in the 1 1.P P 1 9 P Y
fpublic assembly industry,and he has managed numerous convention/civic center studies
` throughout the country. He will be responsible for the day-to-day management of the
assignment
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June 11,1996 -
City Jefferson
Page 16
David C. Petersen, Managing Director
^ David C.Petersen is Managing Director of the Sports,Convention and Entertainment Facilities Group
for Price Waterhouse LLP. This is a national and international practice providing assistance to local
and state governments,authorities,franchise owners,corporations and financial institutions. Services
provided include: I
I
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Market Demand and Utilization Studies Management and Operations Analysis
• Development Strategies and Planning Expansion Planning and Building Program
• Financing and Funding Plans Economic Impact Analysis
Upon receiving a B.A.degree,with honors in economics from San Jose State College,Mr.Petersen
I provided consulting services in municipal financial planning,central city revitalization strategies and
sports,convention and entertainment facilities development and operations. He served as Executive
Director of Lexington Center(in Kentucky)during its planning,design,financing and construction
.1 period. Mr.Petersen's assignments have included studies for existing and proposed centers such as:
J New Orleans Superdome Exhibit Hall Cabo Convention Center
• Jacob Javits Convention Center Georgia World Congress Center I�
• Hynes Convention Center Colorado Convention Center `
• Washington State Conv.&Trade Ctr. George R.Brown Convention Center
Miami Beach Convention Center
J Indianapolis Convention Center
Cervantes Convention Center San Diego Convention Center
Atlantic City Convention Center Lexington Convention Center
• Milwaukee(MECCA)Convention Center Cincinnati Convention Center
• City of Brownsville,Texas Yuma Civic and Convention Center
• Lubbock Civic and Convention Center City of Jeffersonville,Indiana
Memphis Convention Center
Charleston County,South Carolina
J Oregon Convention Center Mansfield Civic Center
• Kuala Lumpur Convention Center Orange County Convention Center
r
Mr.Petersen has also served clients in Malaysia,Italy,Japan,Australia,Singapore,United Kingdom,
Curacao and the Philippines.
Mr.Petersen's articles have been published in Amusement Business,Practicing Planner,Urban Land
and Tradeshow Week. He is the author of two books,published by the Urban Land Institute,entitled
Convention Centers,Stadiums and Arenas(1989)and Sports,Convention and Entertainment Facilities
(1996). He has addressed the International City Managers Association,Japanese National Tourist
Organization, International Convention Center Conference, Urban Land Institute, International
r Association of Auditorium Managers,Stadium Manager Annual Seminar,Society of American Business
Editors and Writers,Association Internationale des Palais de Congres and the annual Meeting World
Conference. In 1989,he was admitted as full member of the Urban Land Institute.
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June 11,1996 -
City Jefferson
Page 17
Robert V. Canton, Senior Manager
Robert V.Canton has over nine years of research and consulting experience conducting economic
and financial planning analyses of convention centers,sports and entertainment facilities. Rob has h
been retained by franchise owners,municipalities,lenders and other groups requiring in depth analysis
of sports arenas,stadiums,amphitheaters and other sports and entertainment facilities.
The economic studies conducted by Mr.Canton include assessments of market demand,financial
operations,economic and fiscal impact,operational research,valuations and other services required
in the process of facility development and disposition. He has served as an expert witness,providing
testimony related to the entertainment industry. His background also includes athletic program
administration experience at the NCAA Division I level.
Projects for which Mr.Canton has served as project manager include:
• Atlantic City Convention Center MGM Grand Convention Center
• Cleveland Convention Center Myriad Convention Center and Arena
• Cobb County Civic&Performing Arts Center Newark International Trade&Convention
• Colorado Convention Center Center ;.
c� Colorado Springs Civic Center • Orange County Convention Center
• Columbus Convention Center Oregon Convention Center i
• Dane County Expo Center • Orlando Trade Mart
l(`
Fayetteville Civic Center
Peabody Hotel
• Gwinnett County Cultural Arts Center • Pittsburgh(David L.Lawrence)Convention j t
• Hotel Roanoke Conference Center Center '{
Indianapolis Convention Center&RCA • Rhode Island Convention Center
• Dome • Rome Community Civic Center
• Kuala Lumpur Convention Center • St.Louis NFL Corporation
r••� Las Vegas Convention Center • Tampa Convention Center Hotel
JMadison Convention Center(Wisconsin) • Milwaukee"MECCA"Convention Center z
Mr.Canton is a contributing author on the subject of Minor League Baseball and several case studies
r' for the book:Sports,Convention and Entertainment Facilities,published by the Urban Land Institute. f
He has addressed the Athletic Business Conference, International City Managers Association,
International Convention Center Conference, and the Urban Land Institute. He has been quoted
and/or contributed information for publication in industry and national journals including the New York
Times,Financial World,Tradeshow Week and Amusement Business.
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J City Jefferson
Page 18
Teresa M. Reiss, Staff Consultant
Teresa Reiss is a staff consultant in the Price Waterhouse Sports, Convention and Entertainment
Facilities Advisory Group. Ms.Reiss received a Master's degree in economics from the University of
South Florida.
Since joining Price Waterhouse,Ms.Reiss assumed responsibility for the analysis and composition
of the Amphitheater Annual Report and contributed to the Stadium and Arena Managers'Annual { .
Report. Ms. Reiss' articles have been published in Faci/rry Manager. Her most recent client
assignments have included:
• Raleigh,North Carolina—Performance evaluation of the Greater Raleigh Convention and Visitors
Bureau. i
• Charlotte,North Carolina—Market,financial and economic impact analysis for a proposed retail and
entertainment center.
• Tulsa, Oklahoma — Market, financial and economic impact analysis for proposed arena,
• soccer/track and field stadium,and aquatics facility,
Cincinnati,Ohio—Market,financial and economic impact analyses for proposed expansion of Albert
B. Sabin Cincinnati Convention Center. Attendee expenditure surveys for various convention
center events including professional and trade association events,SMERF groups and consumer
shows.
• Memphis,Tennessee—Market and financial analyses for proposed expansion of Memphis Cook
Convention Center.
J Atlanta Braves--Cash flow analysis for new stadium.
• Boston,Massachusetts—Market,financial and economic impact analyses for proposed convention
facilities and domed stadium.
Ms.Reiss has engaged in research and analysis for case studies of the following facilities:
• America's Center(St.Louis) • Georgia Dome(Atlanta)
• Louisiana Superdome(New Orleans) • Ernest Morial Convention Center(New
• Dallas Conventicn Center Orleans)
J Comiskey Park(Chicago) McCormick Place(Chicago)
• RCA Dome(Indianapolis) • Fargodome(Fargo,ND)
• Georgia World Congress Center(Atlanta) • The Mark(Quad Cities)
i
Prior to joining Price Waterhouse,Ms.Reiss held a Research Assistant position at an urban
J transportation research center where she was involved in urban planning and analysis of
transportation systems.
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June 11,1906
City Jefferson
Page 19
Karel Estes, Staff Consultant
Karel Estes is a staff consultant in the Price Waterhouse Sports, Convention and Entertainment
Facilities Advisory Group, Ms,Estes received a Master's degree in economics from the University of
South Florida. j
Her most recent client assignments have included: i' ;
aOregon Convention Center—Market,financial and economic impact analyses for proposed center
expansion.
i
• Mansfield,Ohio—Market,financial and economic impact analyses for proposed conventiorVcivic
center.
• Sugar Land,Texas—Market, financial and economic impact analyses for proposed corporate
conference center,
r
• Massachusetts Convention Center Authority—Market,financial and economic impact analyses for
proposed convention facilities and domed stadium.
Montgomery County,Maryland—Market,financial and economic impact analyses for a proposed
• conference center.
• Cincinnati,Ohio—Market,financial and economic impact analyses for proposed expansion of Albert
B.Sabin Cincinnati Convention Center.
• D.C.Arena—Analysis of current economic and tax base conditions in proposed site area;estimates
of economic and fiscal impacts resulting from development of a new NBA/NHL arena facility.
Irving,Texas—Market,financial and economic impact analyses:evaluation of site and financing
J • alternatives for an NBA/NHL arena, f
• Atlanta Hawks—Financing plan development for new arena.
^1 Atlanta Braves—Cash flow analysis for new stadium.
JCalifornia Angels—Economic and fiscal impact analyses for proposed new stadium.
Ms.Estes also provided research and analysis for case studies included in the book published by the
Urban Land Institute entitled Sports,Convention and Entertainment Facilities, These facilities include:
t
• Indiana Convention Center Santa Clara Convention Center r
• Georgia World Congress Center Washington State Conv.&Trade Cir.
• Boston Hynes Convention Center New Orleans Convention Center C
` Louisiana Superdome Austria Centre Vienna I
} Orange County Convention Center Suntec City(Singapore) i
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June 11,1996
City Jefferson
Page 20
Ip .:
NlIgUn Kamp, Stan Consultant
Nilg0n Kamp is a staff consultant in the Price Waterhouse Sports,Convention and Entertainment
Facilities Advisory Group. Ms.Kamp received a Master's degree in international relations from the
University of California in San Diego and a Master's degree in economics from the University of South r
Florida.
Since joining Price Waterhouse,Ms.Kamp assumed responsibility for the analysis and composition ( "
of the Convention and Congress Center Annual Report and contributed to the Stadium and Arena
Managers'Annual Report. Her most recent client assignments have included:
• Las Vegas,Nevada—Market analysis for proposed expansion of MGM Grand Hotel.
• Kuala Lumpur,Malaysia--Market and financial analyses for proposed EON Center.
Orlando,Florida—Staffing and operational rates analyses for Orange County Convention Center.
Portland,Oregon—Market,financial and economic impact analyses for proposed expansion of
Oregon Convention Center.
-� Mansfield,Ohio—Market,financial and economic impact analyses for proposed convention/civic
JI center.
• Charlotte,North Carolina—Market,financial and economic impact analyses for a proposed retail
and entertainment center.
I•^•� Tulsa,Oklahoma—Market,financial and economic impact analyses for proposed arena,soccer
1 stadium,and aquatics facility. ;
Atlanta Braves—Cash flow analysis for now stadium.
Ms.Kamp also provided research and analysis for case studies to be included in the book published t ``
by the Urban Land Institute entitled Sports,Convention and Entertainment Facilities. These facilities
include:
t
• Indiana Convention Center(Indianapolis) Santa Clara Convention Center
• Georgia World Congress Center(Atlanta) Washington State Conv.&Trade
• Boston Hynes Convention Center Center
• Louisiana Superdome(New Orleans) New Orleans Convention Center r ;
l Orange County Convention Center Austria Centre Vienna
• Suntec City(Singapore)
4.
Prior to joining Price Waterhouse,Ms.Kamp held a Research Associate position at a local
consulting firm where she performed economic analysis of the tourism industry for several Florida
—� counties.
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June 11,1996
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Page 21
Time and Budget Requirements
The proposed plan for conducting this study recognizes the Citys goal of completing the scope of
services using the most cost-effective methods. Phase I,which will determine the need(or
estimate utilization)for a new multipurpose convention/special events center,analyze potential
ram,will be conducted within an eight week time frame for a
sites and recommend a building p ro g
foxed fee of$45,000 excluding expenses. At the conclusion of Phase I,a work session will be held I
presentation and discussion of the findings. The City will then have the information f�
to provide full pr
necessary to decide whether or not to proceed with Phase II. For this reason,the City may choose
hase II until completion of Phase I. The Phase I fee will be payable
not to give authorization for P
1
according to the following schedule.
--J Phase I Fee and Expenses
$ 15,000 Due upon authorization to proceed with Phase I
15,000 * Due three weeks following authorization to proceed
15.000 * Due upon submission of progress report
Total Phase I fee excluding expenses
*Plus travel and other out-of-pocket expenses.
The Phase I fee quote is valid for a period of sixty days.
Phase II of the project will determine if the project is economically viable. The total fee for Phase II
will he$23,000,excluding expenses and will be payable according to the following schedule.
to �}
Phase II may be authorized up to sudy days after completion of Phase I.
J
Phase II Fee and Expenses
$ 13,000* Due upon authorization to proceed with Phase II i
10.000 * Due upon submission of final draft report
* Total Phase II fee excluding expenses
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June 11,1996
City Jefferson
Page 22
Engagement Terms
Our services will not include ascertaining the legal and regulatory requirements applicable to the
proposed project,including zoning,other state and local government regulations,permits and
licenses. Further,no effort will be rriade to determine the possible effect on this project of future
energy shortages or present or future federal,state or local legislation,including any bond
restrictions,environmental or ecological matters,interpretations thereof or subsurface conditions.
Our report will contain a statement to that effect. 0
{j Some assumptions inevitably will not materialize and unanticipated events and circumstances may
1 occur;therefore,actual results achieved will vary from the estimates,and the variations may be
material. Our report will contain a statement to that effect.
Further,we will neither evaluate managements effectiveness nor be responsible for future
marketing efforts and other management actions upon which actual results will depend,and we will
so state in our report.
The terms of this engagement will be such that we will have no obligation to revise the report to
reflect events or conditions which occur subsequent to the date of the report. However,we will be
available to discuss the necessity for revision in view of changes in the economic or market factors
affecting the project. Our report will contain a statement to that effect.
The report is intended for the information of the person or persons to whom it is addressed,solely
Jfor the purposes stated therein and should not be relied upon for any other purpose.
Neither our report nor its contents,nor any reference to Price Waterhouse may be included or
;t quoted in any offering circular or registration statement,prospectus,sales brochure,appraisal,
loan or other agreement or documentation without prior written consent.
Price Waterhouse does not,as part of this analysis,perform an audit,review or examination(as
defined by the AICPA)of any of the historical or future estimated financial information,and
therefore does not express any opinion with regard to same.
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Authorization to Proceed . .f
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i { If the proposed scope of services described in this letter meets with your approval,you may f
�� authorize us to proceed by signing one copy of this document and returning it to us. This proposal
will remain in force for a period of sixty(60)days. Should you have questions,please contact
.j David Petersen at(81 3)222-5406.
Y
We appreciate the opportunity to present this proposal and look forward to working with you on '
. this engagement. ;:
Very truly yours, t
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Price Waterhouse LLP -
1995 CONVENTION & CONGRESS CENTER
I ANNUAL REPORT
IAIPC
Copyitlht 1995 Vdumo X
INTERNATIONAL Increasing support from AIPC and iAAM member centers,Asia-Pacific Council "
REPORT venues and Australian Venue Managers Association encourages us to work toward
further expansion of this report to include centers in othcrr regions:Africa,Middle
East,Central and South America.
In 1993,we introduced new terminology for defining the markets in which your
"j centers are located, by size. These market size categories were almost Identical to
the previous grouping of centers according to their physical size. Nearly all of you "
iagreed that the number of hotel rooms'was a more logical method by which to
group destinations.
Number of Hotel Rooms
North America Europe/Asia-Pacific
City Size Class cation Metro Area City
Gateway City >20,000 >5,000
National City 10,000-20,000 <5,000
Regional City <10,000 Same as National
H/GHUGHTS As we begin the second decade of compiling this report,we focus more on trends
and special Issues of current interest. Here are some of the topics In this year's
report:
J
There have been no major changes apparent from 1993 to 1994 in occupancy,
rent,food and beverage sales or attendance.
New data on conventions without trade shows in North American venues reveals
that these events,or congresses,comprise about 10 percent of total center
usage and 15-20 percent of total attendance at convention and trade show
events,
,
�. ► Most centers do not offer the most efficient proportion of meeting area to exhibit
area--the ratio of total meeting and ballroom space to total exhibition space.
Destination characteristics determine center attendance of occupancy because �
the major result of the large Increase in the supply of new and expanded centers
is a change In the dominant site selection criteria. Increasingly,the availability of
centers and center features/specifications is of less importance than destination
access,market population,attractions,hotel accommodations and safety.
Retail stores and commercial service businesses operate in nearly one-third of
the centers responding to the Question of the Year. Many more center
managers are Interested(if,or when, their centers expand)in providing retail i
shopping when they have more space to accommodate these outlets.
1995 Convention 8 Congress Center Annual Report 1
J � Price Waterhouse ur,s Delaware registered limited liability t
partnership,Is relerred to herein as Price Waterhouse.
._...•,,,,un.\Y:�.F',�fr,,i.�F.: ve+..v..s�................. ...,........_..—........,.......... ...... n....r•x... ............•....,.....,,,.. ....,. •_..,v..,_..�.• 4,. cni+c^it
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MORE FLAVOR, You will notice a different format in this edition of the report--fewer statistics
r h' LESS FILLING (g aphs/charts)and more analysis of changes in operating 3
r y 9 p g performance and
t f— reporting on topics of current Interest. Please let us know it you prefer information
1 presented this way versus more data versus 7--you tell us. The purpose of this
report and the summary of your annual operations is to Identity and evaluate trends,
jissues and new Ideas. We believe current and relevant information will enable
center managers(and Price Waterhouse)to provide better services,plan more
efficient centers and improve profits.
OCCUPANCY, Nearly all major centers in North America and AIPC-member centers in Europe r
RENT, AND responded to our survey. The last calendar year can be noted for two dominant
ATTENDANCE characteristics: center operating stability and disparity in currency fluctuations
(compared to North America). Exhibition hall occupancy and attendance at North
American centers was relatively unchanged from the prior year. Occupancy rates
for European congress centers are not comparable to centers in North America or
i Asia. Few congress centers In European destinations have dedicated or purpose- i
built exhibit halls. Even the largest,most modern centers such as those in Berlin,
Rome,Nice or Vienna utilize multipurpose halls for displays and rely on the trade fair
centers in their cities to host large exhibitions.
_J
Exhibit Hall Occupancy
N.Amenca-Galemy 43%
N.America-National I „309L
N.America-Regional 209E
J Europe 14%
��w ,,,,••✓✓ Asia•Pacitc 41%
1
0% 10% 2096 3096 40% 50%
Percent Occupied
JConversely,few North American centers have dedicated assembly halls,
auditoriums,amphitheaters or other halls with fixed seating on sloped floors.
Consequently,North American conference planners utilizing convention centers are
j less inclined to organize plenary sessions or assemblies of all delegates attending
J the event. When a plenary session is essential to the proper function of the
meeting, portable seating is usually provided on the flat surface of the exhibit hall or
ballroom floor. Centers in North America which do offer fixed seating include
Atlanta,Houston,Miami Beach,Chicago and Anaheim. Most state-of-the-art
—' convention center theaters are only used by convention events five to ten times a
year because 1) the destination is primarily utilized by trade associations;2)most
"1 professional associations with delegations exceeding 2,000 do not plan plenary
i sessions because centers in their geographic rotation pattern do not offer theaters
or assembly halls; or 3)their seating requirements exceed 2,000.3,000 and they
—, must rely on an exhibit hall configuration or small arenas(5,000.8,000 seats)such
as those adjacent to the convention centers in Anaheim and Dallas.
Average effective rental rates were relatively unchanged over the prior year, as I
measured in their local currencies. Unfortunately, because of uneven rates of j
f exchange,relative to the Swiss franc,European rents were not comparable to each G
other in a common currency cY the past year. To illustrate the extent of distortion I �
caused by converting local currencies to Swiss francs or U.S.dollars to measure
.J
2 1995 Convention's Congress Center Annual Report
,a
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i
-j actual changes In attendee spending or rental rates over the recent period,the
travel index for a few selected locations is shown below:
Travel Index
City %Change 919 3-1219 4 !
Geneva
+32%
Hong Kong +14%
Milan -3% I
Montreal -11%
Paris +25%
Stockholm +9%
Washington, D,C. 0%
1 i ^
These changes are more reflective of the relative strength of the Swiss franc and
German mark and comparative weakness of the U.S. dollar,or a currency
devaluation. Therefore, most of this apparent change was caused by differences In
j exchange rates rather than comparative Increases or decreases in rental charges or
_! occupancy rates. Consequently, it would be misleading to show the increase from
September 1993 to September 1994 based on exchange rates,given the wide
fluctuation in currency values over the period.
Participants in the 1995 survey will be provided confidential reports showing the
change in their performance over the period based on their local currency.
After adjustments for the large changes in divergent currency values, rental rates
were similar to last year.
i Average Effective Rental Rates
.� Sloss Fr/m2 U.S$1#2
6 0.35 (,
5
0.30
4 024
3 0.18 j
' 7
2 0.12 t
t 0.06
^' 0 0.00
J Gateway National Regional Gatenray National All
NonhAmerica Europe Others
Measurements and comparisons between Europe and North America are also made ,
—' unreliable because exhibits or displays in European centers frequently occupy
lobbies,corridors,ballrooms and other areas that are adapted to accommodate
�} displays and booths. Since this is not dedicated space,management may not have
J included it in calculating the size of their exhibit space area and, consequently,rental
,
earned per square meter may be overstated. t
Rental per attendee was similarly lopsided,with rates in Europe four to six times the
rate per attendee in North America. This disparity probably results from the larger
attendance at trade association events at centers in North America. For example,
t conventions with trade shows comprise 80 percent of all events, as compared to
�{ conventions without trade shows(20 percent). By contrast,the same percentages
are probably reversed in European congress centers. That is to say,conventions
1995 Convention&Congress Center Annual Report 3
{ '^'-•w'wsv ro rr.• ..... . ..... .. .. ....... ...._�. ....._.�..-�._..-...._....--..........._..._.. .�.—+....—..-...rw.....r re.... •sR YUW.Kr ,'. '..
41
tNa�:y!ni
O
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V.
:.. • without exhibits may comprise 80-85 percent of all events in European congress
centers,
CONVENTIONS Food and beverage sales per attendee remained relatively unchanged. However,
WITHOUT TRADE when food and beverage sales In North American centers were measured for
! SHOWS conventions without trade shows,their performance exceeded sales per capita In
European centers. These events are becoming more significant in North American
centers In large and mid-sized markets--Gateway and National destinations with
'European-style'center cities. This will be discussed in more detail in the next
t section of this report,
When North American centers function more like congress centers,they host annual
meetings of professional associations which are too large for a hotel and do not
conduct trade shows at the same location where their conference is convened,or
not at all. Their exhibits are often smaller scale or light, e.g, table-top displays,book
sales and poster sessions.
i ..
Also,when North American centers function like congress centers,their food and
beverage sales per delegate are nearly double the North American average for
conventions with trade shows and approximate sales in European congress centers.
Although Occidentals,whether meeting in Europe or North America,still do not
measure up to sales per attendee at events In Asian centers,we cannot hold our
—1 facility managers(or their chefs!)responsible,
Food b Beverage Expenditures per Delegate
1 SWss Fr/Delegate U.S.smelegate
:n 1 40 32
30 24 ,
20 18
10 e i
;. 0
Gateway National Regional Congress" Gateway National Asia-
North America Europe Pacific
"N.American conventions without trade shows.
MOST CENTERS IN The differences between center occupancy and attendance in Europe versus North
LARGEST U.S. America remain much greater than we expected. When we first began our analysis
j MARKETS APPEAL of the differences and similarities between European and North American convention
— center building layouts/space allocations and their utilization,we expected European I
TO PROFESSIONAL centers to become more like North American centers. European centers,in the mid-
OR TRADE '80s, appeared to be expanding their buildings to provide dedicated exhibit space.
J ASSOCIATIONS We assumed the financial pressure on professional associations in Europe to
(not both) accommodate lucrative trade shows would outweigh the attendees'preference for
the'non-commercial'ambience,focused dialogue,exchange of ideas and
collegiality.Many center managers stated that conference attendees would be
distracted by the obligation or requirement to tour the trade show to satisfy
expectations of exhibitors whose companies had invested heavily in their product
displays,demonstrations and technical staff to market their merchandise.
The trade-
off is this: devote time to visit the trade show or pay a much higher registration fee.
4 1995 Convention 8 Congress Center Annual Report
ask-
• r
s
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�F
i
This evolution(or devolution--it depends on your opinion!)has not occurred as we
expected. It certainly has not occurred at the pace we perceived North American _
1 centers becoming more like European centers! Professional association event
planners In North America appear more likely to utiliize the combination convention
/trade fair centers for congresses without exhibits than European trade associations
�r
are to Increase their usage of European-style combination congress/performing arts
centers for congresses with exhibits.
The tendency for'supply to beget demand'seems to be a more valid expectation
=� based on actual changes which have taken place in congress/convention center
occupancy patterns,as compared to other types of real estate-building uses.
Perhaps this is more prevalent in congress and convention centers because their
rental charge,or cost of usage,is heavily subsidized by their governmental owners.
Nevertheless,when we discovered little or no need for exhlb!t space by local,state s
—� or district associations In regions with few or no exhibit halls,and the minimal use of
fixed seating theaters In convention centers by North American associations,we
were tempted to conclude that the availability of exhibit space would encourage
development of trade shows by more North American professional associations.
Ukewise,in Europe,we expected that financial pressures would cause European
professional associations to demand more purpose-built exhibit halls in European
congress centers. Not so!
When centers in the largest North American Gateway markets were surveyed about
their•congress'activity,they reported 15 percent of all convention and trade show
attendance and 20 percent of all convention and trade show events were hosted by
associations that did not conduct a trade show. Conversely, European congress
centers have not built exhibit halls to the extent wo expected. This is undoubtedly
Influenced by the location of congress centers in Europe also. Center city sites do
not permit large floor plates on grade in Europe or North America.
BUILDING SPACE Conventional wisdom has had a greater influence on the design and planning of our I
IN BALANCE centers than actual usage patterns. For example,in North America the ratio of
convention center building space intended for exhibitions versus assembly/banquets i
has averaged 5:1 and,more recently, as low as 3:1. Clearly a 5:1 ratio is ..
appropriate for some centers predominantly hosting trade associations that produce ti
large exhibitions and host few meetings. it is possible to calculate, for all convention
and trade show events in a major center's typical year,five times more occupied
square foot days In the exhibit hall than occupied space in meeting rooms/
ballrooms. Moreover, trade associations are more likely to Insist on high-tech,
contiguous exhibit space on grade and ample parking for as many as 30-40 percent
"1 of their attendees(metro area residents who will drive to the event in their private
J auto). They are less concerned about the technical capabilities or abundance of
meeting rooms/banquet space.
1 Professional associations, by comparison, occupy meeting room/ballroom space in
greater proportion to exhibit space. Professional associations may host large trade
shows(200,000-300,000 square feet or 20,000-30,000 square meters)and still
occupy one unit of meeting/ballroom space for every 1 or 1'h units of exhibit space
J occupied. Clearly, centers offering a ratio of exhibit space to meeting room/
ballroom space of 11/2:1 or 2;1 are better positioned to serve the needs of
professional associations than centers with a 3:1 or 5:1 ratio. Some managers
confide they have captured and retained several major association events solely
-� because their competitors can not accommodate their extensive meeting room
requirements. The requirement for large blocks of meeting rooms is Increasing for
many association conferences. As professional specialties and sub-specialties
proliferate in medical,scientific and other technical Ilelds,the need increases for
each group of'specialists'to meet In separate sessions.
'. 1995 Convention&Congress Center Annual Report 5
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' t.. .-....� ._-..._,.._._.._ ............._.. ,b fir ,. ... 17 'r
t
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What does all this reveal? Two conclusions are obvious. First,the building I ,
programs offered by North American convention centers in center city locations,in
European-style cities, may be evolving Into floor plans which offer a higher ratio of `
meetingtballroom space;that is,more like European congress centers. Second, i
1 careful analysis of the relevant and unique characteristics of a destination and Its
„ W`d center's site location may reveal important guidelines to Its space needs, its future
expansion plans and its identifiable target markets.
DESTINATIONS As recently as the late 1960s,a handful of large convention centers In North
--f DICTATE America hosted most major convention events:centers like Convention Hail in
OCCUPANCY AND Atlantic City,the Coliseum in New York and the Caw Palace or Brooks Hall In San
•l T' TARGET MARKET Francisco.
1 During the past two decades,nearly all major markets in North America,Europe and
Asia-Pacific(and even most regional cities)have built modern,well-equipped
centers,much larger than their predecessors. Consequently,event managers have
J focused their site selection decisions more on the characteristics of the destination
than the availability of a convention center or its specifications. Trade association
-I event site selection is increasingly determined by criteria such as:
J Size of metro area population within one-hour drive radius
► Level of air service!(non-stop)from cities In other regions
Total number of metro-area hotel rooms
► Parking facilities near the center
Professional association conference planners are also concerned with some of the I
same criteria,but they also utilize centers In locations with smaller drive-in
populations or less frequent non-stop air service. These destinations offer i
attractions and amenities which are more appealing to the specific Interests of their ¢
attendees.Some of the highest rates of professional association attendance and
occupancy are found In destinations which offer:
i
..1 . Concentration of hotel rooms within three to four blocks of the convention center
J Large number of specialty/retail shops and quality restaurants within one mile of
the center
► Unique,authentic or high-quality attractions
Centers located in clean and safe environments
Like successful trade association destinations,popular convention cities also offer:
J ► An abundance of hotel rooms in the metro area
Commercial,professional or industrial specializations of particular Interest to their
members
► Congress and convention centers that are professionally managed,offer quality
J service and are well-equipped
What should we conclude from these observations? First,high attendance and
I occupancy is Increasingly unlikely for centers in destinations without these
J competitive advantages. Second,centers in locations with European-style center
cities(e.g.San Francisco,Boston,Cincinnati and Charleston) may not need to offer
one million-square-foot (100,000-square meter)exhibit hall floor plates to maintain or
J increase their share of the professional association market. Conversely, centers in
metro areas with populations under one million are(increasingly)less likely to attract
ambulatory trade shows which depend on a high percentage of drive-in attendance.
Third,knowing your destination's competitive advantages will help to focus
fa marketing efforts, identity target markets,Improve the reliability of operating budget
r estimates and guide future building space additions and floor plan layout,
6
1995 Convention&Congress Center Annual Report
{
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QUESTION OF THE About one-third of the 51 centers responding to our survey Question of the Year
YEAR:RETAIL said they rented space to merchants of retail goods or services. The types of
SHOPS IN outlets most frequently mentioned were: -
�' CONVENTION , Gift shops,news stands, notions/sundrles
CENTERS , Business center (Kwick Kopy),post office
► Ticket outlet(theater, attractions,tours)
Bank,foreign exchange,ATM
! ► Airline tickets, rental cars
► Flower shop,decorating services
Thirty-five percent of those who responded rented space or were in the process of
I _ negotiating agreements with retailers, Of the remaining centers,20 percent said
i they would rent space to outside commercial enterprises if they had available space
to do so. Of the 45 percent who did not rent space,and apparently were not
interested in doing so('not discussed,'*never considered'or no explanation),only
i
four gave specific reasons for their decision.
Not enough profit, not enough volume,location too remote
Don't want to compete with local merchants, conflict with shops in adjacent hotel
It is relevant to note that many centers have hotels connected to their buildings and
! these hotels offer the traditional range of convenience-type lobby shops: news
stand,gift shop,hair salon,apparel shop, etc.
Several centers were designed with retail shops located on their street frontage to
II provide a more pedestrian-oriented fagade than would otherwise be presented by
the long, blank wall of a convention center in the middle of a center city area--the
very locations town planners seek to activate. These planning concepts are
J especially vital in North America,where many congress centers must offer large floor
plates on grade for dedicated exhibit halls. Centers noted for their outstanding
urban design features and offering retail store-fronts/outlets Include those in Seattle,
Tampa,Nice, Graz and Hong Kong. The Hong Kong Convention and Exhibition
Centre is also one of many outstanding examples of a center with full-service hotels
connected--they have twol Other examples include centers in Paris(both Palals
—y de Congres and CNIT);Lexington,Kentucky;Angers;Cincinnati;Singapore;
JToronto;San Diego; Visalia,California and Boston.
Some of these outlets are operated by businesses providing event-related services
"l to the center(caterer,exposition contractor, decorator,stand erector); some are
J local merchants,travel agents,etc.; a few are not-for-profit(e.g.symphony
association,tourist business) and one or two are operated by center management
as a profit center,visitor amenity or to promote more local spending by delegates,
In evaluating the feasibility of operating such enterprises in your center,the most
critical considerations are:
> 1MII the customers all originate from internal events(Are we remote from !
—� pedestrian shopping routes?), or can we offer services to non-event attendees
as well?
i > Is our purpose to provide a convenient amenity to our visitors, generate a profit,
activate our fagade at the sidewalk frontage or promote more pre-or post-event
leisure touring/spending at local attractions in our city,region,county?
J > If we are remote from resident(i.e. local)customers,will delegate occupancy
support a shop that remains open five days a week,or is it financially feasible to
remain open only during conference hours?
We will continue to learn from each other's experiences,and we appreciate the
responses of our participants and their interest in sharing lessons P P g sons learned.
J
1995 Convention&Congress Center Annual Report
1
f Y
e
AIPC I Founded in 1958,the fundamental purpose of the Association Internationale des Palais de Congrbs
(AIPC)Is to offer organizers the maximum guarantee of success for their conferences. With over 100
-, members woilcWdo,AIPC's principal goals are to:
Bring together those congress centers corresponding to very strict criteria of quality.
► Establish close and continuing contact between congress center managers.
,• ► Study all technical problems relative to International meetings.
►
Standardize servicas.
- s Promote a common commercial policy by exchanging information about International conferences
to favor rotation of AIPC member congress cantors.
► Place technical consultants with organizations planning congress cantors.
J Specialized committees Inform AIPC members of technical Innovations concerning equipment,
j improvements applicable to management or evaluation of their congress centers.
{ For more Information about A)PC,contact Michel Poitiers•Brussels Congress Center 3 Coudenbeig
Bnacolles,B•10D0(Tel.:32/2 513 41 30 or Fax:32/2 514 21 12).
ICCC The International Convention Center Conference(ICCC)is operated In association with the International y,
Association of Auditorium Managers. he purpose is to establish a forum for Ideas end Information and
J provide a common meeting ground for those involved In the meetings Industry-facility managers,
convention bureau officials,exhibit hall operators,association executives,trade show managers,
suppliers and others. ICCC is concentrated,business•oriented and designed to Improve the operation
of meeting facilities and the servicing of conferences,conventions,trade shows and exhibits. ICCC has
J _ provided a forum for presentation of this report.
i
.� For more information about ICCC,contact John Swinburn,CAE,Executive Director•fAAM 4425 W.
Airport Freeway,Suite 590•Irving,TX 75062(rel.:214/55548020 or Fax:214/555.9584.
PRICE WAIERNOUSE The Price Waterhouse Convention and Congress Facilities Advisory Group Is devoted exclusively to
l CONVEN77ON 8 economic anayais of public assembly facility development and operations and specializes in:
CONGRESS FACILITIES
ADVISORY GROUP ► Market demand and utilization studies Financing and funding plans
► Site evaluation and ranking Expansion planning and building programs j
► Financial operations and analysis . Development strategies
Management options . Economic and fiscal impacts anayais
The Group is uniquely qualified to assist owners and managers In developing planning and evaluation of
convention and congress facility operations for these reasons:
► Price Waterhouse's track record of quality,credibility and objectivity
Extensive worldwide experience in public assembly facility analysis
Jl ► Price Waterhouse offices located in 448 cities in 111 countries
Our professional contributions to the improvement of assembly and meeting facilities includes:
-i ► Data Base and Building Files-We maintain current records on conter floor plans and city
Information for convention and congress centers in every major city. I
J ► Professional Conferences and Seminars-Our staff address five to ten professional associations 1
annually on subjects associated with public assembly facility planning,development and operation.
These groups have included International City Managers Association,International Association of
^i Auditorium Managers,International Convention Center Conference,Association Internationale des
Palms de Congrbs,Urban Land Institute,Japan National Tourist Organization and others. Our
- active involvement in these prolessional organizations keeps us Informed of Industry trends,facility
development and current issues.
► Publications and Research-The results of our research and analysis are published in such
journals as Trade Slow Week;Facifiy Manager,Urban Land,Amusement Business,Convene and
Agent d Manager. Staff members have also been quoted in magazines and newspapers such as
Financial Times,New York Times,Wall Street Journal and the Washington Post. David C.Petersen
_-_ authored the book,Convention Centers,Stadiums and Arenas,published by the Urban Lend
Institute. The book is currently being revised and will be reissued as Convention,Sports and J .
Entertainment Centers,
Price Waterhouse Convention and Congress Facilities Advisory Group's activities and resources
{ -y demonstrate our commitment to the improvement of public assembly facility development and
it J operation.
No portion of this report may be produced without written permission of Price Waterhouse LLA
-.r For permission to reprint this information in whole or in part,or for further information or suggestions,please contact:
David C.Petersen Price Waterhouse LLP P.O.Box 2640 Tampa FL 33601(rel:813/223.7577 or Fax:8131222.7008).
j � !
8 1995 Convention 8 Congress Center Annual Report
f
a
I
a
` ra
i
r?
he convention centers in three cities—Bald-
"If yu0 build i4,they vuitl coma"is net an adegaoto pmsceipboll more,Indianapolis,and San Antonio—are
I 71 for an Ailing dmwtm.Convention centers in economically achieving enviable performance,according
�eattlry destinations will not perform wall.Convlersely,a to the Price Waterhouse 1991 Convention Center
Yantion cei t es seccem in att cdng delegates is a sum Annual Re their lack of coal a dentin don historic,
sine of a do>,vrr myn!flat is healthy, entertainment,or scenic attractions,these cities
have consistently attracted enough convention dele-
'11 and out-of-town trade show attendees to gen-
crate the hotel and sales tax revenues to amortize
Conventi0m the debt and pay the opendng losses of their con-
con-
vention centers.
These centers make a net contribution to their
downtowns,not because they are exceptional facili-
des—although they are well designed, Ton-
ally managed,and aggressively marketed—but be-
cause their downtowns arc healthy.Most important,
office occupancy—not convention centers—has sup-
0 ported major hotel development,which in turn at-
AF tracts convention delegates.
Price Waterhouse's latest survey of 120 conven-
don centers in markets of all sizes found that the re-
cession and lack of financing for new hotels have of-
' fatted convention center performance.Cities that
_j 799 have been successful in promoting office develop-
`� ® it ment and the revitalization of their core areas have
_f a larger supply of downtown hotel rooms and
higher convention center attendance.
:DAVID C. PETERSEN
easunng a Conveldlon Corner's Polrjulrmnce
Simply put,a convention center is built by taxpayers
Reprinted from Urban Land,published by ULI-the Urban to attract out-of-town visitors who will spend !
Land Institute,625 Indiana Avenue,N.W., money in their city.Success is measured by the ex- j
Washington,DC 20004. tent to which the annual taxes generated by dele-
gates'spending exceed the center's annual debt
service costs and operating deficit.
i The relationships are fairly straightforward.The
use of exhibit space for conventions,trade shows,
X67 and consumer shows determines rental revenue and
OCCORM TOW tir°^4ae°gt7df
demand for event services.(See Figure I for average
gelTn19
o nt) CoeRaaetS>r�as occupancy of exhibit space in 1990.)
Ii'nsna► e1°r A square foot of exhibit space requires about
' ! In Cad ish:w ,
i >20=hotel Rooms 54% 31% 1e6 three square feet of building area.If three square
East 59 44 is feet of space cost$300 to build and$5 per year net
! ti6dde 5e 36 22 cost to operate,amortizing the debt(with a 10 per-
west 47 33 1s cent debt constant)and paying the operating cost
10,000-20,000 Hotel Rooms 38 25 le per square foot of exhibit space will require$35
Fast 43 25 to per year.
V400 32 29 20
West A 10 percent hotel tax on a three-night stay will
33 19 14 probably generate the$35.Therefore,if the aver
00.000 Hotel Rooms 30 20 la
East 42 31 1e age length of stay of convention delegates is three
ASdore 34 16 18 nights,attracting one delegate per year for each
13 8 s square foot of exhibit space covers costs.
Sales taxes generated from other trip-related
a Na krone n canWnm cnnn aarryft delegate spending,as well as income and property
'>r» mw".."coo&M d•Wmwm,cnwr t r ca„.,,m, VW"d,snow,o,neu t0 paw tax increments related to visitor services,represent a
0f1O�•"MIKII PM 90ruon d eM tiro.s Woe•eq a avo. surplus over costs.And successive rounds of spend-
. sooty—Watutom.1991 Carryon Ca r,k Moat
ing,sales,and income created by the multiplier ef-
42 Urban Lund • 34nuaty 1992
r
.. . L I
1
1
feet produce even more tax rove-
nues to put on the plus side of the
C=Ymtftm a2dTnWa9 as OaasicrSwan; _ {
convention center account.
" ` Rbviously,the one-delegate- A""aya Mtda� AMdsss l %km i
xhibit-square-foot bench- InC'i MHoe"
. Ck of success does not always >20000 Nord Roam 15.45 5021 $p92 fZ11 E030 $7.75
Caeestion 1,77 0.19 593 110 010 3A9
Mold.Some cities spend much Cattr" 435 0.17 11.91 - - -
more than 5100 a square foot on 10,000-20,009 Had Rooms 330 0.44 132 139 039 437
their convention centers to,for Carescai 1,01 0.14 3.41 081 014 2410
"x21nple,build them under- caw" 2.71 0.011 9.90 - - -
ground,span highways,or pro- <10,000NotrJRoam 312 0.10 10.62 IN 091 7.53
vide glass-paneled roof souctures Cam 0.64 0.06 197 (131 024 2.00
,connected by threaded molybde- Calod"0 2'10 0.03 em - -
17um balls.
Some cities do not collect ho- �Sam='A'm'°"°°'""°"`°"°'""'°�°°
SaacsRtaWranaea I@91Cmroraonc.+f.a.se1/levat
-tel taxes.In Florida,that function
belongs to the county.Not surprisingly,the conven- Not many convention centers achieve this bench-
-tion centers in Orlando,Fort Lauderdale,Daytona, mark of success.Certainly not enough do.The
--and other Florida cities are owned and operated by most successful buildings are looted in cities where
kheir counties. trade shows and major conventions have to go-the
States sometimes collect hotel taxes.States with megamarkets like New York,Chicago,Toronto,At-
one dominant city can realize two to three times the lanta,and Dallas.Convention centers in cities that
'Fiscal benefits that the city realizes from convention are major tourist destinations-the natural beauties
-11elegate spending.Thus,in cities like Boston,New (San Francisco and Searde),the gambling towns
York,Philadelphia,Chicago,Seattle,Atlanta,and (Las Vegas and Atlantic City),the historic tides
env ,the state pays most or all convention center (Boston,Montreal,and New Orleans),and the
costs.e Disney twins(Anaheim and Orlando)-also rend to
Nevertheless,the proposition that one delegate perform well.
per square foot of exhibit space equals fiscal After the megamarkets and the tourist destina-
ness is supportable in most instances.The sin- dons comes the third group of cities:all the rest.
"°^V host important statistic for convention center How many convention centers in this group achieve
owners is nonresident attendee days.This deter- the magic 1:1 square-foot-to-delegate ratio?Fewer
�nes total spending by out-of-town visitors to than 10 of approximately 40 convention centers in
e convention center which,in turn,produces tax Group III cities.And some of these ring the bell
revenues. only once every five to 10 years,when a single ma-
- In 1
� Price Waterhouse's surveys,attendance corre- jor association selects the city for its annual meet-
]ates hizhiv with a center's exhibit space occupancy. ing.The Baltimore,Indianapolis,and San Antonio
'Furthermore,a center's rental,food and beverage, convention centers,however,have consistently at-
event services income usually is related directly twined this level of performance and outperformed
to exhibit hall occupancy:the higher the occupancy, the convention centers in other Group III cities.
the lower the operating deficits.
Therefore,the more delegates,
'(the lower the operating deficits.
(See Figure 2 for food and bev-
erage lAweeelf�RdTradaSMan e°°as'°st'°°°'
J sales per attendee in 1990 Am.oa 5tldr511111111 11111011111111111 W
and Figure 3 for convention cen- i'cem"""f
Iter rental rates in 1990.For ten- '�Hotel R00R° MA Sul MIS $o.05 60.01 M13
J Fad 0.05 0.02 0.15 am 0.03 099
ters surveyed by Price Water-
Mdda 0.03 091 0.09 O94 0.01 0.13
house.food and beverage Vilest 0.04 0.02 0115 0.05 0.03 0.13
loperations and events services 10,000-20,000 Hotel Roorm 0.03 0.01 0.07 am 0.02 0.09
eclipse exhibit space rental as the East 0.02 0.02 0.04 0m 092 0.04
primary means to increase operas- M 0.02 0.01 0.04 097 093 0.05
mg income and reduce net operat- West 0.05 O.02 0.97 0.04 0.03 090
�ing costs.The survey also reveals <10000HatdRoonn 0.04 0.01 0.07 005 0.01 0.12
7 M>� East 0.09 0.03 U7 0.07 0.03 0.12
"od and beverage sales per Middy 0.04 091 (1.07 034 0.0i 0.12
lice and total rental income Well 0.04 O.OZ 0.07 004 0.07 0.07
per attendee are substantially
greater at European centers than 120 NatA Am.cn m...m Orion arvpa.
at North American centers.) Sts.se PM W111whome.1911 CAIMOWN caw*orlRrME
7anuary 1992 Urban land 43
{ r I
1
i
i
NEW
sponses to failure have tended to j
focus on the centers:expand the
center,advise some analysts; -
shoot the doctor(whoever pre- I
pared the feasibility analysis)or
blame the politicians,advise
others.
But the cause of a convention
center's poor performance(its
low occupancy and disappointing
attendance)is not the fault of the
convention center.It is the fault
of the destination.Price Water- "
house's statistical analysis of the
a characteristics of the top 60 mar-
kets and their convention centers
shows some remarkable correla-
tions between a city's population,
air service,and hotel room sup-
ply on the one hand and,on the
:= other hand,is convention center
0
occupancy,attendance,and size.
Before they attract conven-
tion delegates.successful conven-
tion cities attract hotel rooms.
r The primary impetus for hotel
+� construction is occupied office
Baltinraa'a sae" 6hring Credit to the Ciijl space,not convention centers.Occupancy-by busi-
_,.. rx s ness visitors is typically two-thirds of a hotel's total
Not all,but certainly most,Group III cities suffer demand.Demand for rooms from tourists and tour
to central business district(CBD)blight.Among the groups is a minor share,and demand from conven-
haft shops,and exceptions are Spokane,which transformed the rail don center attendees is an even more minor share.
rest=ts,corals- yards at its center into a spectacular World's Fair A hotel's public spaces can handle most of the de-
w*reuives high size,and the cities,or urban service districts,in nand by convention groups.
marts to its P- southern California,Long Island,and Texas that What Baltimore,Indianapolis.and San Antonio
fOII never developed a center city. have in common is a sustained long-term commit-
{ But most of these cities were pounded in the late ment to their respective central cities,toaster plans
1950s and the 1960s by the suburbanization of their that put the emphasis on diversity,and committed
populations.Disinvestment in the central city con- leadership.
tined through the 1970s with the increasing flight While the convention center was an important
— of department stores,financial institutions,and tour- component in each city's center city plan,none of
ist amenities(hotels,specialty shops,and restau- these cities viewed it as a panacea or as a single
rants).Those downtowns that were not knocked out means to accomplishing revitalization goals.The
by these events went down for the count with the convention center was one among a number of ma
demise of the locally owned businesses that had re- jor investments targeted for a large redevelopment
- mained loyal to downtown.In the business restruc- area.Together,these investments created the coo-
curing of the 1970s and 1980s,local department mentum,the critical mass for further investment.
J stores,newspapers,and banks were bought up by or None of these cities was wealthy enough to redo
-
merged with nonlocal corporations and then closed velop all at once.They began in the 1960s and have
or relocated by decision makers with no local ties. not rested since.Progress has continued steadily ,
Piece by piece,bit by bit the central city was re- through several real estate recessions,credit crunches,
duced to a group of constituencies too weak or too and many political administrations.Baltimore has
poor to join the outward migration.Time after redeveloped the inner harbor,developed a popular
J",j time,the economic doctors made the same diagno- aquarium,and constructed a new baseball stadium
sis and prescribed the same medicine:take two pub- for the Orioles.Indianapolis has built the Hoosier-
lic assembly buildings and call me in the morning. dome,developed an amateur sports complex,and re-
Arenas,stadiums,and convention centers were developed Union Station into a specialty retaiVres-
built and expanded.Every city has one,some have taurant center.People no longer refer to the city
three,and most do not work as well u hoped.Re- that hosted the 1987 Pan Am Games and is head-
'" 44 Urban Lund January 1992
quarters for most national amateur athletic organi- tional recognition for his leadership in many issues
zations as"Indian-noplace."San Antonio has added vital to the development of San Antonio's center
to its Riverwalk,built the Hemisfair complex.and city.'lire city's current mavor,Nelson Wolff,is also
;Y developed River Center.Mall.This regional retail committed to a strong CBD.This commitment con-
.�mdoor/outdoor)center is adjacent to the River tinues the tradition that began with the administra-
,:nter Marriott and the convention center and tion of Walter McAllister(1961-1971)and was
was designed around the terminus of the extended continued by Lila Cockrell,prior to Cisneros.Mem-
! Riverwalk. bership in Phi Bcta Kappa is not a prerequisite for
The construction of first-class arenas and conven- the job of mayor of Indianapolis,but the fact that
I _ tion centers in these three downtowns was part of the last two mayors have been members of this soci-
the revitalization strategies,but these facilities did ety honoring scholastic distinction says something
not,by themselves,support new hotels or transform about the voters'recognition of the intellectual re-
their locales into entertainment districts replete sources needed to develop effective solutions to the
with restaurants and nightclubs. problems of central cities.
The revitalization strategies of all three cities The experiences of Baltimore,Indianapolis,and
also recognized the importance of the CBD as the San Antonio show that a convention center can
—, center of the region's Class A office space,the need serve a vital role in the renaissance of U.S.central
for ample off-street parking facilities,and the im- cities.Also,the performance of a convention center
pottance of museums,theaters,other cultural facili- can serve. •an ongoing barometer of the city's i�diaraConvem
_ des,and public works of an for the central city's im- health.: bon Center end the
i age. Hx9enlorne am
I Consistent,high-quality leadership has been a two al many build
II key to success in these three cities.Six mayors be- David C.Petersen u director of Price Warerbou e'ssporsr rag projects uda`
fore former Baltimore mayor William D.Schaefer, and convention facility aduisory services in Tampa,Florida.He W=by the city of
now governor of Maryland and known for his com- it the author of LUs 1989 book Convention Centers,Stadi- tidsrrpob siXt
mitment to a strong central city,also embraced a ums,and Arenas(Catalog Number C37),and of Price Water- to 19MSto
commitment to the redevelopment of the city.San bowels 1991 Convention Center Annual Report,wbirb is sbmgd ett ib doMnt-
Antonio's former mayor Henry Cisneros gained na- available fsvnr Price Waterboure. bv�
,.,.--"+� . . , .:s: :. - . _��'fir;:•s': ��.:�..M�µ: :_ :-,�....
`•� ..tai' �`�,';.::�: _•"I'• ..:'-. ''..•.:��; '.,.-'-. `.;�-_ ;:'�' ^+:
� J
i .
i
7=ua Y 1992 Urban Lmrd 45
i
„
II�
' i
j GUEST WRITER
I i i I
r
J
_-• J ' n-,"L
I� e
n o vv i
_ When the Ritz Carlton
yr
1-lotel's management
00 d h�?VC�'. 'tr1 ? companywasawardedthe
Malcolm(3aldri c National
i 1 1 t y n
i Quality Award in 1992,
I I n c e many service industries
were awakened to the
n O W 1@ d g e
(� v importance of quality
�? • e Pdee service:how the service is
Gl I I n j delivered and customer
• • p satisfaction.
'd a Ctl•g e For those service companies
By David C.Petersen h i t a b i i I t y that had not already been
Director Price Waterhouse LLP ..'' converted to the value of
Tampa,Florida r.5' p e n c e
sec "TQM"(Total Quality
U.S.A. ` n o W I g e Management),Tom Peters'
rt - event c e anecdotal case studies and
pre
a• z financial success stories of
d u e ) n t SAS(Scandinavian
r fo bev r g e Airlines),FedEx,and
\ Nordstroms Department
h o S a i I t y Stores provided well s
X c e documented evidence of the
I e d g e increased market share,
profitability and employee
pre - e r ' service morale that could be
International
^••t Convention Center d U r I n ,.�. V e n t obtained if the quality of a
�. P^`^y. Conference,the Urban service could successfully
I u ek" Landlnstitute, TOOd ar bevearge differentiatean enterprise in
International Association
the same way we expect a
JI �
David Petersen isAlanagingDirccfor ofAudltoriumhfanagers, h J S r'1 i � b I i i t \/ Y P
Stadium Manager Annual f 1 company with a superior
of Sports and Convention Facilities Seminar,Association
Advisoq�ServicesforPricr e X p e e n c e product to be successful.
Internationale des In Waterhouse LLP. lie is a graduate of de Congres k n o e d g e Convention centers and
I San Jose State College having earned
and the annualMeuing ectator facilities are not
� n R.A.degree wUhlnanors in P
World Conference. re service
s
economics. AM Petersen hasprovided lmmnt[C t0 the growing
consulting services in central city
' revitalization strategies,municipal e n t interest in quality service.
financial planning and sports and f0� b e Unfortunately,magazine
convention facilities development
operations. He has had articles I publishers and trade _
_ published in Urban land,Convene, h o t a b I associations have exploited
rj Amusement Business,Practicing
Planner and Tradeshow Week He is e X ` i e n c this interest by promoting
author of Convention,Sports,and
:ie k w- , d g ! their own"awards shows'
`�ntertainmenl Centers,published by %t'�+' /
e Urban Land Institute. Mr.Petersen \
I isafreyuentspeakerforgmupssuch ore vent „ -�/1 E
,J as ICMA,Japanese National Tourist I
Organization, U �^ g e v
-I 6•CINTERMEX fo d bevearg,.
hosr7ilahil , ty -
,
t
tt
6.
. i
based on opinion polls that, Price Waterhouse agreed to
! nt best,r/re popularity accept this assignment on
contests and,at worst,are the condition that _ -
+', unfair to centers on both participants would not
�ds of the spectrum,i.e. disclose the results of the
oie who deserve study,i.e.their final scores.
recognition for their extra The reason for this proviso
efforts as well as those was to encourage
wanting to know how they participation by centers
can do a better job. which may not have had the
Unfortunately,these awards resources or self image to
lare not based on the criteria expect a high score.The
by which event producers, survey and analysis was
promoters,and attendees
designed to be of value for
—, determine quality service all participants. The
and,consequently,they fail objective was to enable them
to recognize those centers to discover their strengths as
which arc providing the well as their weaknesses
highest quality services, without fear that a low
Most simple opinion polls ranking would cause
are biased insofar as most of repercussions from their
the responses received will owners or create a
tend to select centers from competitive advantage or
among those with the marketing tool their
highest attendance and most competitors could use
events. Conversely,they against them.(Leave"we're
ill be more likely to #I"to sports team fans.)
elude or under-count
Identify
smaller centers in smaller Iden y
markets with fewer events. ��C!/iC @°a The responses were grouped by type or category of service and the
•^t five reasons mentioned most frequently by all major types of users
JSecond,most of these polls, Quality were identified.It was discovered that Cite definitions or most
relying on ballots by mail, �C'i$�Tii! frequently mentioned examples of quality service were the same t'
fail to include protection among various types of users(i.e.the same criteria were most
" against"ballot box stuffing." Thirty-five convention,trade important to producers of conventions,trade shows,and consumer
Lastly,they employ criteria show,and consumer show shows). These five,most important in the 1993 study were:
for categories which the managers were selected based
award's promoter identifies, on their proportionate share or Quality Service Criteria
usually through his or her mix of occupancy in the 1992
i Price Waterhouse Convention
common sense or Center Annual Report. In other
"conventional wisdom", words,if 20 percent of the
rather than utilizing those 1992 occupancy was consumer Staff Hospitality -
service characteristics shows,then seven consumer Staff friendliness,
which,in actuality,are most show producers were polled. �J cheerfulness
-J important to the attendee or Each respondent was asked to: Polite,can-do attitude
show producer. *Identify the they Makes our staff and
i centers -
JIn 1993 and 1994,Price had utilized for their past three delegates feel welcome
Waterhouse was retained by major or annual events; , I They're happy for us to be
a large number of *Indicate which center J there I
• Staff go out of the way �. .
^T convention centers to provided them with the highest to be helpful
rr -�- measure Itow their level of service;and then
✓ '
tComers rated the quality *Give specific examples or
heir services. the reasons why they N
JJJ considered one center's service
superior to the others.
CINTERMEX •7
. �—«....+ ....__. �........._.; ._...._.. ..... .......r......,.......... .............,.:,..,,.........,..,,.r i ..r.......r......u..,e..r...rv.,..e�.w,�•i'� :1 �t +j'kr } �'. �' F,r�yy(!
1•
� .omap..gp, .�+�,�.w.w.....o.,�+�r�w�wa.a..^w-.«...nw-a-v.-x+.--..+•�..�,�-...��,•,..s•--�'— •----•.—,•-q--•9,•
t
I N.
• 13anquct service was A number or score for each
"restaurant quality" center was calculated as an
Offered wide range of expression or approximation of _
selections with broad price customer satisfaction based on
range the comparative ranking of the
Prices fair center,(Ist,2nd or 3rd)for
j ® Service cheerful each of the five criteria by ten
I and friendly or more users. Consequently,
• each center's score was not a
reflection of how their service
Measure compared to all other
Quality Levels participating buildings,only the ,
two other centers utilized by
Paa+rgEVA VS. the event. Many of the criteria
• Technically skilled Comparative and services users were asked
• Know their job • Event coordinator to rank,in many instances,
• Well-trained staff was always easily accessible Rankings
were not provided by center
• Made our show/meeting • Delivered on their Each participant(center)was employees,for example food
run smoothly promises asked to provide the list of all and beverage services. It was
• Staff accommodated events for the most recent also apparent,for some events,
special requests quickly calendar year.For each center, that the user's response was
J and easily a mix of ten to twelve influenced by a singular event
Staff anticipated "ambulator y
"(rotating) or experience,good or bad,
problems early conventions and trade shows which reflected the conduct,
• No surprises when was selected which was experience,skill and/or
we got there proportionate to the mix of friendliness of a
• If something didn't work, events in each of the buildings. subcontractor's staff(not
it was promptly repaired A total of ten or more user employees of the center),for
or replaced surveys were completed for example security,cleaning or
All room setups each center.Approximately two electrical service subcontractor.
and equipment were hundred additional groups were
provided as agreed The score or ranking for each
ww.,✓ P g contacted;however,their center was an average of their
• All services were well rankings(ls[,2nd,3rd)b each i
Pat uwr�StntNCC responses were not used for
organized one or more of the following y
g user surveyed. This measure of
,,,,,J Responded promptly reasons: customer satisfaction for all
to requests.Returned 'The person interviewed did centers ranged from 1.2-2.9 for 5.;.
;. telephone calls the not attend the event for all of each criteria.
same day the past three years;or
• Event coordinator * All centers participating in the
was easily One or more of the past three facilities used were in survey were comparable in size
I accessible (approximately 200,000 or
markets of smaller size, more uare feet of exhibit
Initiated suggestions i.e.
q
less than 20,000 hotel
for room setups,meal space), and were located in
functions,room blocks rooms. major commercial or visitor
• Work order was detailed Most associations and trade destinations(in markets
and well prepared shows meet annually. It was [MSAs]with 20,000 or more
Handled plans decided not to ask about their hotel rooms).
f i
i in business-like way p����°�,�� experience at buildings used in
• Well organized g""""�"6,za 1988 and 1989 because the
• Same event coordinator experience may be difficult to
j in charge before Food and beverage orders recall,many buildings'service
J the event was also in charge were delivered as ordered to levels have changed in four or
during the event the right location at the right five yeas,and many of the
• We were notified at regular time event managers we spoke to did 1,
intervals how the event Quality of food not attend the event(or were
r' was progressing in was excellent not employed by the group)in
comparison to our plan. Appearance/presentation 1988 or 1989.
of meals was good
• Variety of food/meal choices
was excellent
j 8•CINTERMEX
Sti
3 .r V
J t
i.
Conclusion
of Quality l
'f As revealed in the 1993 study,
Services one of the five most important
Survey/ Quality of service is treasures of the user's
experience was the quality of
sometimes dependent on the
Analysis the center's food. In nearly p rice the center can charge
all centers,food service '
or the level of subsidy In addition to the service Y the contracts are not awarded by
center receives, the center's management; v
level criteria which the study
- revealed,the participating Unfortunately,some centers many center managers have
are not authorized to hire no influence over which
_ centers obtained other additional staff to offer a concessionaire is selected.
valuable lessons from the prompt response to user Clearly,users do not
study: needs or offer higher wages differentiate between
service _
"'to,attract or retain more provided by center employees "
conscientious workers. versus subcontractor
5 milnrly sera, sers are.eglpoloyccs l)e oiiii`aod; s
` un�irillinp,ta. ' fees,•• !. '4gra�a p�� �elr<ctric ,
q cerr•. b L Centers which were ranked
, "� 1 highest were those with the
_., epritatchar =t�;�,.• t.,.h' mostrigorous—long-term-
y ''"' staff training programs,not
7 User responses obtained
those(three or four)which
J from exit intery iews were. Were conducting,TQM
not consistent with, the•4..;,_ ( p. Stains'at.tlttime:the
',opinions they disclosed_In:
/�° eyWas conducted';;`". j
confidendttl telephone Many times,the user won't be ;'�;i.•-�^:• �,
�nterviews�theret exit _
able to identify why one
.�,r•:• t.,rs e Ppki Many destination-related center is regarded as providing
iincrviews.rat}�ba•
characteristics can sour a better service than another
user's perception of the without fast being asked to (_/, h
t�
center,no matter how well name the center which,by':,
the center staff have been comparison,gave the best'
service and then being sked Unlike a product,users
g
rr trained.In nearly every
_ to give specific reasons or cannot try out or test drive a
survey of users;which we, examples for their preferred service before they purchase
i have conducted over the center. Often,the examples or it.Selling services on the
past 20 years,when event , reasons that form the basis for basis of quality(vs,price)
Jmanagers are asked their dreir opinion are different than relies more on word-of-
Some criteria that are most opinion of the center, the answer they may give if mouth,referrals,references,
_ important in 1993 may not invariably two or three asked the question:"How do and past experience than
be in the"top 10"of event managers will base you define quality service?'In products which can be
important issues'id`--1998, their evaluation on some ':'"
other words,user•perceptions evaluated before purchase.
•:,,-;;� about service may often be•: . An equipment failure,if
Of.000tSe,a'friendl condition or Cvant different than the'criterin they successfully/cheerfully/
Ifuj:stttf ., ^�R,..< ;•Ou'r'trelated to icenter's actually crnployi• tiFexamplo -e skillfully remedied or
sit ;..operation s 4 t their responses Whin**V resolved,can result in higher
questioned:pbout.s"ce t; .; customer sadsfaction than if
+. TheytftiJ ' , ltt bsD the r�r+ tfie failure had never
{h bcs4`te �57rr. the tic r21
cG t cdurrcd:,Sounds corny,but
L4 2icp i� 1•17�.�e,ngg �s('i many centers,
:successfill
e wea n Qecd tic�tirsscd n a;V; en given lemons,know
s py'all aya' ,: .,it' + po ulgr n�er4 tl�do( ;::hbw"to make terrific
l nesatt�l _aattclafhr8cet�4 (•;lemonade:
gis`truifo CAKIwere ft gitvuli�r } er,the�!ha} '.tr Y✓e look forward to
"a�6itielf" Q :ap ductin nfollowu
Users often focus on,or P 8 p,
l measure,servic leiois/ c. V +.• k? ti ry'o.every.tiYeyearsjo�"-.
'.Cl""'ity y :did- ° t'ermm4 hatcfwngesr f
iv' a .v b h i4'"JaI�S` ,di.•~�, r; '•�.b h.
C�' iC'gl I
Nt i;:'4` L4++ :" •cam•.•' ..
J 10• r.INTFRMFX k... 5
... u:.. •. >
s '
I
x
r s S u E s
Most convention centers operate
in the red—with state and local
I f '
governments footing the bill
-�
VS
� .
a
f r
�3VH0 SHOULD FUND CONVENTION CENTERS. C
BY DAVID GHITELMAN
ake no mistake about it:Convention centers es across the country,could the budget crunch come to the
are costing state and city governments plen- trade show floor?And is privatization the answer?
ty.Of the largest centers—those with more
than 250,000 square feet of exhibit space— WHY SUBSIDIZE?
only 8.2 percent expected to cover expens- The amount government spends to subsidize convention
es,service their debt and make a profit last
P centers is alarming to some industry outsiders. "Why
year, according to a recent survey of 450 should government be in the convention center business?"
facilities sponsored by the International asks Edwin Mills,a professor of real estate at Northwestern
Association of Auditorium Managers. University's Kellogg School in Evanston, Ill. Mills is dis-
Among centers of all sizes, 67.1 rcent
Pe tressed that so many centers, particularly the larger ones,
expected their operating expenses to exceed revenues. operate in the red. But he is even more upset that few
Only 11 percent thought they'd break even.who footing cost/benefit analyses even look at the capital costs of the I
the bUL?State and local governments. centers. While many centers help their city's economy by
Meanwhile, Congress is taking a fresh look at many encouraging hotel stays, restaurant meals and taxi fares,
federal programs and slashing budgets in the process.The Mills doubts that these benefits offset the cost to taxpayers i
wave of cuts is sure to have a trickle-down effect on of putting up a multi-million dollar center."The consulting
already-strapped state and local funds. As it is, many firms that do studies on these centers should estimate these I
states and municipalities are now re-examining the ser- negative effects,"he adds,"but they treat capital costs as if
es[trey
vic provide,and sonic are even taking such actions they were free."
as raising tuitions at state universities and privatizing Even industry consultants share some of Mills' misgiv-
garbage collection. ings. David Petersen, Tampa-based managing director of
� So far,convention centers have largely been spared the Price Waterhouse's convention and congress facilities advi-
x. But,as the coffers run dry in city halls and state hous- sory group,sees no theoretical justification for the govern-
uusmarroraernurnvrnarsrwEh
SEPTEMBER 1995•79
r ft
S.
merit role in the field,"if nobody had square feet of indoor space, the 1-X and beverage, telephones, whatever
ever started subsidizing convention Center bills itself as the world's largest we can do.You do not see any pub-
! I centers, there wouldn't be any need single-building expo facility, lic buildings doing that." !
for It," he says. "Only those centers The largest private center built Another advantage of private cen-
where there was sufficient economic with private funds is the Sands Expo tors:They can afford to be more flex-
demand would get built. There's no and Convention in Las Vegas.Crooned ible in both contract negotiations and
reason to subsidize them except that by the Interface Group, which until operating rules becurse they arc not
I everyone else does," recently also owned COMDEX (the as hemmed in by government regula-
eywood Sanders agrees. enormous consumer electronics tions."There tends to be a difference
Sanders, a professor of show),the center was built in 1990 to in rate structure," says Bob Holman, i
urban administration iniston at serve as a home for the show. The an account executive at the I-X Cen-
Trinity University in San remaining 50 weeks a year,the center, ter. "Prom what I've seen,many pub-
Antonio,. sees it as which went from 550,000 square feet lic centers have their rates set by the
_ unluealthy competition. to 935,000 square feet of exhibition municipality and don't vary them.Pri-
"There is this astonish- space in November 1994,books other vately owned facilities negotiate."
i I ing desire of cities to business.Other major private centers Show managers and exhibitors
compete with each include the Palmetto International may also find privately owned centers
j other,coupled with the Expo Center in Greenville,S.C,, with more able to tailor their rules to fit a
desperate need of many cities to boost 375,000 square feet of exhibit space, show's needs, says Steven Hacker,
the economy of their downtowns," CAE, president of the International
j Sanders is concerned that so many Association for Exposition Manage-
cities seem to be staking their future ment. "There are some subtle differ-
on the convention industry. "if this Just how ences that reflect the difference in
becomes what every city thinks it will ownership," he says. "You tend to
win at,then some will certainly lose." 1 have more restrictions and regulations
profitable prlVate in publicly owned buildings, particu-
.« PRIVATE INTERESTS 1 larly with regard to public access.
The solution to this problem, accord- There may also be some operational
Ing to Northwestern's Mills, is simple.. centers are issues if you are doing a show that
Governments should start selling off pushes the envelope,of customary
their convention centers. "It would practice. For example, neither public
have to be done gradually,"he warns, remains a we nor private centers will permit fuel in
-
over the next 15 to 20 years. They the tanks of automobiles on display,
want to sell them off at the right price." but a private center may permit some
After all, convention centers not activity that a public facility might
only can survive in the private sector, guarded secret. view as risky."
they already do. Although the over- ut we shouldn't expect to
whelming majority are government see a boom of new private
built,owned and operated,a handful and the Bayside Expo Center In centers anytime soon.It's a
— of entrepreneurs are already active in Boston, with 250,000 square feet of tough business, says j
the industry.Privately owned conven- exhibit space. Richard Heller, vice presi-
tion centers constitute only 5.5 per- All four of these centers claim to dent and-general manager
cent of the current total,according to be profitable, with industry insiders of the Sands. "Things were
the IAAM survey, but if Mills has his generally regarding the Sands as the very lean here in the
' i I way, they could represent the future most profitable. But just how prof- beginning," he recalls.
I
of the industry. itable they are remains a well-guarded "Trade shows book three
_r The largest of these centers,Cleve- secret; privately held companies do to four years out.We weren't making I .
land's international Exposition Center not have to disclose their profits. a profit or even breaking even."
.r (better known as the I-X Center) is They also claim to offer show man- However, Heller does not com- '
something of an anomaly.It is housed agers and exhibitors a better level of pletely dismiss the possibility of
;t in an enormous government-built service than they will find in public expansion to other cities. "We are
J
structure that was erected in 1942 by centers. "The major difference willing to look at any opportunity,
the U.S.Department of War to serve as between t>_s and publicly owned cen- either in the United States or abroad," j
a bomber factory.It was subsequently ters,"says Jeff Beckelman,vice presl- lie says. "But It would have to be a
a tank and heavy vehicle plant until dent for sales and marketing at the premier destination."
nine years ago,when the Park Corpo- Sands,"is from the perspective of ser- But,since virtually every major city
ration bought it and turned it into an vice. We do extensive telemarketing. that could support a convention
exposition facility. With 2.5 million We ask exhibitors if they need food already has one, it would have to be
J :
i 80•MEETINGS&CONVENTIONS
T
j1
j a V
' I
. t
an extremely popular destination, times,that's very short-sighted." the direct purview and oversight of
Heller readily admits that the Sands In Charlotte,N.C.,where a conven- local voters,and to shift the financing
does not compete with the publicly tion center with 412,500 square feet of of convention centers to independent
owned Lis Vegas Convention Center exhibit space opened earlier this year, authorities or higher levels of govern-
for the simple reason that the Vegas similar sentiments are voiced by ment. By all accounts, the voters
Center is more or less solidly booked. Melvin Tennant,president of the Char- should have said,Tley,we don't want
lotte Convention & Visitors Bureau. any more of these.'But these facilities
PUBLIC INTERESTS "The overall economic impact is what have proven themselves insulated
While private convention centers we are looking at,"he says, "Tine best from this kind of fiscal politics."
clearly can work, they are still tie gauge of success is room night pro- rice Waterhouse's Petersen
exception to the rule and likely to duction. That way you don't have to also expects the status quo
remain so. Certainly, the convention revisit tie situation if the convention to prevail. "There are three
center industry does not see itself in center happens to operate at a deficit. motives for government
Imminent danger of being privatized. If you have conflicting goals,"Tennant involvement in funding
ven in California, where a warns,"you set yourself tip for failure." convention centers: It's
variety of successful ballot Trinity's Sanders, for one, doesn't essential to maintain market
initiatives have sought to see the convention center industry share;it's necessary to revi-
require government to rein failing victim to de move to pare talize an area within their
in its spending, industry down government spending and jurisdiction; or it's just
i leaders feel that the status move services into the private sector. another public works project. Those
quo is not seriously threat- The idea that politicians will start cut- motives aren't going to change."
ened. John Marks, presi- ting off money to centers, he says, Or are they?With many other gov-
I dent of the San Francisco "seems almost inconceivable." ernment programs facing drastic revi-
Convention & Visitors Sanders explains, "The trend is to sion,it could be that the improbable is
Bureau, doesn't believe that his city's remove the funding mechanism from the most likely thing to happen next.N
Moscone Convention Center is likely
to be sold to the highest bidder.
"Unlike some other municipal services,
convention centers are not bottomless
J pits,"he says."They are built as gener-
ators of income and they pay back that
investment many-fold." Marks adds:"I
don't think there's any specific rehi- i a
tionship between convention centers .
and cutbacks in city services. Usually,
convention centers are paid for by
dedicated funding sources outside the
general tax revenue of the city."
The Moscone Center opened in
1981, doubled in size to 442,000
square feet of exhibit space as a result
of a 1992 expansion and is now on the
verge of another expansion,all fund-
ed by increases in the hotel room tax.
And no,the center did not break even
in the past,does not break even now
and has no plans to break even in the
future."There is an agreed-upon poli-
cy among the city,the center and the
Zbureau," explains Marks.
"The
goal of Moscone is to generate
hotel room occupancy. The building
doesn't pay for itself and is not intend-
„_._,,,ed to. My experience tells me that
olks get very confused by trying to
Measure success by die bottom-line of
the convention facility rather than by
its overall economic Impact. Often-
CIRCLE 042 ON INFO CARD
SEPTEMBER 1995+81
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Fueling the
by David Petersen,Teresa Buit n
M.Reiss and N lgun Kamp
In recent years,there has been significant
gr=th in development of public assern-
bly facilities. Among those are profes-
sional and minor league sports venues,
7 convention/exhibition/nreetirtg facilities
j and amphitheaters.Each of these facility
types are experiencing increasing Bevel-
opment due to various factors. This
J article presents someofthefactorsfue ling
the building boons for each type of venue.
Professional
Sports Facilities
Professional sports facilities in I C, '
the United States and Canada include
arenas used by teams of the National
Hockey League (NHL) and the
National Basketball Association
(NBA) and stadiums or ballparks
constructed for teams of the National
otball League (NFL) and Major such as limited seating capacity or available or not as plentiful in older
Ague Baseball(MLB).The table on decayed structure or to conform with venues.Money from advertising is a
h ,w°te opposite page presents new ADA building standards. The Fleet potential revenue source as corpora-
facility construction for each profes- Center, home of the Boston Celtics tions are getting more involved in
sional sport. NBA arenas have had (NBA) and Boston Bruins (NHL), sponsorship of professional sports
the most activity in development of replaced Boston Garden,which was venues. For example, there is an
new facilities since 1988.New arenas built in 1928.Comiskey Park,home of increasing trend for corporations
for NBA/NHL include the Charlotte Chicago White Sox, originally con- purchasing naming rights and long-
Coliseum and the Miami Arena strutted in 1910, was replaced in term agreements for dominant video
which were both constructed in 1988 1991. While both of these facilities board advertising. Older venues
and are also currently evaluating Were replaced, in large part, due to typically do not have the points of
renovation of existing facilities or functional obsolescence,the facilities sale for concessions and merchandise
development of new facilities, were also financially obsolete. that are included in recently con-
New facility development or Financial Obsolescence. This has strutted facilities, potentially boost-
renovations of existing venues are a been an increasing concern for ing revenues in newer venues.
J function of several factors including: professional sports franchises due to Unlike functionally obsolete ven-
declining team profitability, Team ues, iacilities considered financially
® Functional Obsolescence profitability has been declining due obsolete may be renovated or ex-
m Financial Obsolescence to higher costs from free agency and panded. Most venues considered j
N Dual Tenant Facilities increasing player salaries,as well as financially obsolete by their profes-
o Franchise Relocations lower revenues from broadcasting sional sports tenants were con-
and other media revenues. Due to strutted several decades ago. How-
Functional Obsolescence. Several declining profitability, teams are ever,there are cities facing the reality
teams,which occupied existing facili- seeking better arrangements and that facilities constructed less than a
ties for decades, now occupy new higher revenues from the facility. decade ago are already considered
venues.Functionally obsolete venues Teams see an opportunity to increase financially obsolete by the profes-
-ve to be replaced if existing revenues through premium seating, sional sports tenants. For example,
{ sties cannot be renovated due to advertising,parking,concessions and the Charlotte Hornets(NBA)and the
r'? sical conditions which cannot be merchandise. Skyboxes, club seats Miami Heat(NBA)/Florida Panthers
jaltered in a cost-effective manner and other premium seating are not (NHL)are seeking new venues while
1 6 FACILITY MANAGER MAY-JUNE 1996
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Building Boom ---------__ __- -...._
Continued from page 9 a
been successful in signing an expansion Two major factors have Mu-
professional sports team. The motive enced the increase in development of Convention/ -
for constructing or renovating facili- Minor League Baseball facilities, Exhibition/Meeting
ties to gain professional sports These factors are increased demand Facilities
franchises is the publicity and big- for minor league franchises by cities Within the last decade more than
i I league image a community receives. and a change in facility standards. 30new convention centers containing
Games, team scores,draft picks and Minor League Baseball has become an over 100,000 square feet of exhibition
tr3 other team or player related "inci- increasingly popular investment for space were constructed. Dozens of
I J dents" may be reported by major those inter-
media including national television, estedinown- ±,k r existing fa-
magazines and newspapers. Corpo- ing a sports �' �%. fi cilities have
rate relocations and expansions may franchise, also under-
` 1 be influenced by the recreational and for those onve gone major
amenity,name recognition and major communities * expansions,
league image created for the city by that want the +�' s� Historically,
the team. =esi ,tt r the develop-
the of+�
! Minor League amenit y of ment of con-
vention professional cen-
.°� � �
Sports Facilities baseball but � ,v tershasbeen
motivated
Minor l Minor league sports include lack the mar- '� '.� h
Minor League Hockey (1HL, AHL, ket demo- L. ^� by a city's
among others),basketball(CBA)and graphics and . ` °a o' . desire to at-
baseball.Many cities have developed corporate �C ' 1. tract a large
hotel se o
r
multipurpose arenas to host a variety supporttoat- d-use I
of sports, meetings and entertain- tract a MLB franchise. The Minor development, or to provide down-
ment events.Although minor league League has also been expanding town merchants with additional
hockey or basketball are typically the along with the Major League. The visitors or customers.More recently, j
major tenant in these multipurpose "affordability" of Minor League two forces have been dominant in
arenas, minor league sports do not Baseball is attributable to the lower shaping the growth of convention
necessarily drive the development of cost of obtaining a franchise,payroll centers: the increasing number and j
these venues in the same manner of costs paid by the major league team size of conventions and trade shows
professional sports. With the excep- and lower development costs associ- and user demand for more special-
J tion of Minor League Baseball, the ated with a minor league ballpark. ized facilities.
development of these facilities is Recent facility developments are Not unlike sports venues, new
typically driven by the owner of the also due, in part, to new stadium construction of convention facilities is
facility(typically the local municipal- standards imposed by the NAPBL, also driven by the functional obsoles-
ity) rather than the minor league the governing body for Minor League cence of existing buildings wand even
tenants.Local governments typically Baseball.In 1990, the NAPBL devel- relatively new ones.Meeting planners
develop multipurpose facilities to oped and presented its Facility and trade-show producers are becom-
provide an amenity to the commu- Standards and Compliance Inspec- ing more sophisticated and more
nity; however, minor league sports tion Procedures as a combination of specific in defining their facility
teams play an important role in the recommendations and minimum re- requirements. It is not enough for a
economic and financial viability of quirements for all new minor league facility to provide meeting rooms
of a
the arena providing 30 to 40 dates facilities with a construction starting given size;the interior finishes of the
each year. date of January 1, 1991 or later. rooms must meet high standards,offer
Minor League Baseball has driven Existing facilities,built prior to 1991, appropriate ceiling heights, make
the boom in development of ballparks were given a deadline of April 1,1994 available a variety of lighting types
in cities throughout the United States. to meet certain standards for playing and levels of illumination,and,ideally,
i Over the past 11 years, 68 minor fields,seating,clubhouses and other provide corridors for service access
o-d league/spring training facilities have amenities. separate from attendee circulation.
been constructed throughout the U.S. For example, the existing Hynes
T r') and Canada;48 parks were built in Convention Center in Boston accom-
I the 1990s. Most notably, 11 minor modates conventions/professional as-
ballparks were developed in
✓)1994 and 17 in 1995.
Continued on page 14
12 FACILITY MANAGER MAY-JUNE 1996
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v Building Boom
Cnntinued from page 12
sociations who require up to 200,000 by audiences, promoters and per- Sony Music Entertainment Centre in -
square feet of exhibit space and more formers from arenas to amphithe- Camden,NJ.By operating their own
high-tech meeting space than large aters. venues,promoters retain the profits
trade shows.Accordingly,the City of The number of indoor arenas from concessions parking, advertis-
1 Boston is considering building a new (especially those with NHL/NBA ing and other revenues normally
I 1 center,specifically designed for trade teams as anchor tenants)continued to unavailable to them in arenas. It
associations who require larger exhibi- multiply from the 1960s through the assures that promoters keep all the
tion space in order to display their 1990s,spreading 16,000 to 20,000-seat "upside" profits from a successful
t: products. venues into nearly every "top 50" show when they already assume
Georgia World Congress Center metro market.During the 1980s,the most of the"downside" risk of loss.
(GWCC; Atlanta area), McCormick most popular touring acts(i.e.,rock Obviously, amphitheaters are less
Place (Chicago) and Orange County music groups) reduced the number costly to operate than enclosed arenas
Convention Center(OCCC;Orlando) and the length of their tours. This and far less costly to build.
are examples of convention centers trend caused increased competition In regard to changing demo-
that are expanding.GWCC increased for the shrinking number of acts graphics, industry analysis reveals
I its exhibit space from the 350,000 among the large supply of arenas the growing strength of the now
square feet built in 1971 to 950,000 providing lower profit margins for middle-aged baby-boom market.This
square feet by generation-which to some is synony-
phased expansion mous with "Woodstock"-has redis-
in 1984 and 1992. covered its affinity for live music al
McCormick Place's fresco,and is increasingly attracted to
320,000 square feet outdoor amphitheaters.
of exhibit space was
increased to 1.6 mil- What Are The
lion square feet in (Development
1985. The center is Options?
under further ex-
pansion,which will Once a decision is made to build a
provide the venue i new facility or renovate an existing
with 2.2 million venue,the owners must consider the
square feet of ex- various development or construction
hibit space upon delivery options which are available
completion in 1997. to them. Builders and owners have
4
After the comple '�• devised various methods and alter-
tion of Phase IV in native construction procedures to
1998, OCCC will have 1.1 million concert promoters and the owners of enable the owner to accomplish one
square feet of exhibition space. arenas. While production costs for or more of three primary goals:
shows and their transportation ex- minimizing the cost of the intended
Entertainment penses continued to rise, the "over- project, obtaining a fixed (or maxi-
'" Facilities head" per performance increased mum)cost before financing has been
In addition to sports and meeting dramatically.This set of circumstances completed or minimizing the time
forced booking agents and concert required to obtain the fixed or
facilities development, there have promoters to seek venues with lower maximum cost.
been significant increases in the costs which offered them a more
number of entertainment facilities. Singfeor Lump-Sion Bid byGeneral
Currently, more than 60 amphithe-
reasonable opportunity to obtain a Contractor. Under this option, once
aters are in operation in the U.S.,with profit margin. the final plans and specifications for
more than 21 new amphitheaters Promoters are finding it more the building are completed, they are
built in the past 10 years alone. profitable to develop and operate made available for review by inter-
The proliferation of outdoor their own facilities instead of renting, ested general contractors and their
amphitheaters in recent years is due and this is mostly in joint ventures potential subcontractors and material
to a change in music industry With local governments.Examples of suppliers. The contract is usually
economics as well as a change in amphitheaters constructed through a awarded to the builder who submits
market demographics. The recent Public/private partnership include the lowest bid and is qualified to do
surge m their development has Walnut Creek Amphitheater in Ra- the work.United Center in Chicago,
reflected a major shift in preference leigh,NC and the new Blockbuster- Thunderdome in St. Petersburg and
t4 FACILITY MANAGER MAY-JUNE 1996
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Los Angeles Convention Center are and Baltimore Convention
examples of developments that uti- Center are examples of
j lized the lump-sum bid method. facilities built using this
f Advantages to this method in- method.
elude knowing the total construction The disadvantage of
cost before construction begins and this method, as compared L
relatively less time to fix or"lock in" with the lump-sum bid `
the cost.However,under the lump- process, is that the owner "
sum bid method,the owner may not accepts the risks that the
perceive that the lowest cost can be project cost may exceed •'r '
obtainable. Any one general budget estimates and that, ,, t
contractor's list of subcontractor by the time the owner
prices may not contain all of the low discovers this fact,much of
subcontractor bids available in the theworkmaybein progress
marketplace. In practice, however, or completed.
the general contractor bids less than Fast Track Method with
the sum of the "quotes" or bids Guaranteed Maximum Price.
received fromeach subcontractor and Under this method, the
material supplier in the expectation owner agrees to a maxi-
that, once the bid has been won, a mum price that has been
more favorable price can be negoti- negotiated with the builder.
ated.Therefore,this method does not The owner may place
necessarily result in a higher cost. responsibility for the com-
ConstntctionManagerandMultiple pletion of the work, at a
Bids. By retaining the professional not-to-exceed cost, on the
services of a general contractor for a builder or, in a joint ven-
negotiated fee,the owner sacrifices or ture, on both the builder
trades off the possibility of obtaining and the architect.Some of the facilities Most objections to this method
another,equally competent contrac- built under this method are: originate from owners who did not
for whose services may have been Crossroads Arena in Buffalo, Coors retain the services of a qualified
retained for a lower fee,as part of a Field in Denver and Rupp Arena in owner's representative.
lump-sum bid. Because this method Lexington,Kentucky. Design/B uild or Turnkey Option.
involves multiple-bidding,it is pos- If using this method,the building This method involves a lump-sum
sible to obtain a lower construction owner should retain an owner's cost that is negotiated with a builder
cost than the single-bid or lump-sum representative-usually a second,fully rather than bid.The architect is often
method.However,the time required qualified and bondable general con- retained directly by the builder.
J for the owner to determine or to lock tractor or construction company-to Because this method is rarely used on
in final project costs is longer. assure the owner that the guaranteed large, complex, and one-of-a kind
In order to overcome the delay in costs are reasonable and to advise the projects,it isnotconsidered one of the
w1I determining and fixing the total owner on the following: primary options for convention cen-
project cost, this method has been ® Which prospective design/build ters,stadiums or arenas.McCormick
n modified. Two such modifications team is most qualified to do the Place in Chicago is a rare example of a
are referred to as the fast-track work. convention center built using this
method and the fast-track method 6 When the design/development method.
with guaranteed maximum price. documents are sufficiently de-
Fast Track Method. This method tailed and complete. David C.Petersen is Managing Director at
involves overlapping the final stages ® What fees are reasonable for the Price Waterhouse Sport, Convention and
of the design process and the first builders and architects. Entertainment Facilities Group.Teresa M.
phases of construction by bidding M Whether the initial estimates of Reiss and Nilgun Kamp are both staff
some portions of the job, such as labor and material costs are consultants in the Price Waterhouse Sports
�, foundations and structural work, realistic. and Convention Facilities Advisory Group,
��2before the final design for all s When the owner should make A portion of this article was excerptedfrom
••�••••••..✓✓✓✓//remaining portions of the work has payments for the work to the Mr.Petersen's book,Sports,Convention
been completed. Gund Arena in architect,builder or joint venture. and Entertainment Centers,published by
Cleveland,The Ballpark in Arlington the Urban Land Institute in April 1996.
FACILITY MANAGER MAY-JUNE 1996 15
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Vol.26 No. 16
April 15, 1996
TM
i
Since 1971, The Only Weekly Source of News & Statistics on the Tradeshow Industry
News Flashes
Convention Centers Need a More Efficient
Ratio of Meeting Space to Exhibit Space,
Says Price Waterhouse Survey
TAMPA—Most convention centers facilities with a 41%occupancy rate
do not offer the most efficient pro- (In North America,gateway cities
portion of meeting space to exhibit are defined as those with more than
space,according to Price Waterhouse 20,000 hotel rooms in their metro
LLP's 1995 Convention&Congress areas.In Europe/Asia,they are
Center Annual Report.Professional cities with over 5,000 hotel rooms.)
associations need more meeting The report,which was conducted
space in convention centers,it says. by Price Waterhouse's Sports,
And trade associations need large Convention and Entertainment
floorplates with ample truck docks, Group,also found that retall stores
and with a much higher ratio(e.g.,5 and commercial service businesses
to 1)of exhibit to meeting room space. operate in nearly one-third of the
A key trend identified by the sur- centers responding to the survey.
vey is that the characteristics of the
destination,not the characteristics of Balancing Exhibit and Meeting
convention centers,have become the Space
determining factor in convention The survey found that in North S
j' center attendance and occupancy. America,the ratio of convention cen-
David C.Petersen,Managing ter building space intended for exhi-
Director,Price Waterhouse Sports, bitions versus assembly/meetings
Convention and Entertainment has averaged 5 to 1 and,more recent-
Advisory Group,says that the site ly,as low as 3 to 1.That ratio is
selection decision is now centering appropriate for centers that predomi-
more on destination access,market nantly host large exhibitions and few
population,attractions,hotel accom- meetings.Also,show managers often
modations,and safety rather than insist on contiguous exhibit space
the facility. that can accommodate high-tech
The report also found that exhibi- exhibits(e.g.,fiber optic/LAN),as
tion hall occupancy,attendance, well as ample parking.
rental income and food&beverage But the report says centers offer- I
sales per attendee at North ing an exhibit-space-to-meeting- `
American convention centers was space ratio of 15 to 1 or 2 to 1 are
relatively unchanged from 1993 to better positioned to meet profession-
1994.The 43%occupancy rate at al associations'needs.That's because
f3 North American gateway exhibit these associations require large
halls,however,was still the highest blocks of meeting rooms.As profes-
of exhibit halls in other regions,
TradeshowWeel
closely followed by Asia-Pacific (Continued on p.3) ,
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VI
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Exhibit Hall Occupancy -
w„f,+ N.Amarice-Geloway
1' N.Amorica-National
N.America-Rogionnl
' Ff!
Europe
Asia-Pacific w.r
0% 10% 20% 30% 40% 50%
Percent Occupied
Oavpancy rate at North American galeway exhibit halls barely led rate in Asia-Pacific
Pt'ice Waterhouse Survey, The 1995
Y survey found that associ-
continued front p.I ations in North America appear more
likely to use convention/exhibition
tb� signal specialities and subspeciali- centers for congresses without
ties increase in medical,scientific exhibits.However,European associa-
and other technical fields,the need lions are less likely to use European-
increases for each group of special- style combination congress/perform-
ists to meet in separate sessions. ing arts centers for congresses with
Therefore,the report concludes, exhibits.
North American convention centers
in center-city locations may be Methodology
evolving into facilities which offer a The survey includes facility informa-
`°j higher ratio of meeting/ballroom tion from convention centers in North
space.That would be more like America,Europe and Asia-Pacific.
European congress centers. Responses came from nearly all major s,
' Previous Convention and Congress centers in North America and from
Center Reports predicted that member centers in the Association
European convention center build- Internationale des Palais de Congres
ing layouts,space allocations and (AIPC)in Europe.However,statistical
utilization would become more like comparisons between facilities in the
` centers in North America.That's various regions were not possible in
due to financial pressure on profes- some cases for a number of reasons,
sional associations in Europe to including currency fluctuations,differ-
accommodate lucrative tradeshows, ences in the ways facilities are struc-
:i since without tradeshows,attendees tured and utilized,and differences in '
have to pay higher registration fees, attendance patterns.
But this change has not occurred at Source:David C.Petersen,Managing
the pace that was expected,and that Director,Sports,Convention and
may be because European congress Entertainment Advisory Group,
t' and convention centers are heavily Price Waterhouse LLP,P.O.Box 2640,
subsidized by their government Tampa,FL 33601 (813/223.7577;
owners,the report says. Fax:813/222-7008).
i°-7 1
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Boom ?
i �
Hope f®r Greater Revenue Boosts
a Race f®r Rigger, Better Venues
the teams are currently playing in the example,the round stadium configu-. attracted to new markets. They are
Charlotte Coliseum and the Miami ration provides excessive end zone offered a large, affluent, or rapidly
Arena,both built in 1988.Li contrast, seats for football and outfields seats growing market-area population,low
some financially obsolete venues are for baseball. In addition, seating rent,no competition(or less competi-
being renovated.For example,Conti- capacities for football are too large for tion)from other major league teams
nental Airlines Arena, originally baseball.There are several examples or generous shares of revenues from
constructed in 1981,will be renovated indicating a trend in the development premium seats, concessions, adver-
e to retain the New Jersey Devils of single tenant facilities, such as: tising and so on. While the fact of a
I (NHL). Other recent/current ex- Cincinnati's approval offundingfora team's relocation does not necessarily
amples include Madison Square ballpark for the Reds (MLB) and a represent a growth in national
Garden and Seattle's renovated home stadium for the Bengals(NFL)which demand, it frequently represents a
for the Supersonics(NBA). currently share Riverfront Stadium; geographical shift of demand result-
Dual Tenant Facilities.Duel tenant the California Angels(MLB)seeking ing from the physical or functional
or multipurpose facilities built from a new or renovated stadium after obsolescence of facilities. Several
the 1960s through the 1980s were sharing Anaheim Stadium with the franchises have relocated due to the
t" designed to host
two professional fr lack of local fund-
sports teams,Stadi- ing or support of
umscouldbeshared their teams.In the
byfobtball and base- ' ' NFL, teams have
ball while
� arenas �� recently relocated
could be shared by .,�:'Y�„ °=+��:L"u
_ to new facilities in
hockey and basket- y.Lwt � ;i;` y other cities; the
ball. These venues Houston Oilers to
provide additional Number of Fr az ctus'es"':+' P��=;_.: '•:, a�:; Nashville,the Cleve-
f 1 event o ortunities '•„ ':IS i r;
xJ pp "26 �` land Browns to Bal-
cilrtres
and allow fixed op- �: x. ,„9 timore (recently re-
erating expenses to named the Ravens)
be shared by many etio o and the Los Angeles
events.Whilemany u p"gmerit`si'A3 r _ j r Rams to St. Louis.
NBA and NHL Other cities, such
teams continue tol"F'Y1 $ r- "�"? as Tam
'i;f,_Ne Facilities*'; %;.. } ,
share fac.lities, +�;,�a5� n.t,z. 4 ,;.' qn+ Y.'•.xx and Seattle are con-
nearly all NFL and -�,Yi.:rt,tf .4,.�:f,�a ,�r� ;
�: �:::... `.::•c..._• ':' ;:. # 1 sidering the devel-
MLB B franchises are now seeking their former Los Angeles Rams NFL prior c�lrus=•, s.tt. •,• opment of new
fa ies own venues.Of the 18 multipurpose to their relocatiion to a new venuein relocation.ue m part,to the threat of
stadiums in existence, currently only St. Louis; and the Minnesota Twins League Ezpansirnl. Within the past
nine have dual tenants. Each of the (MLB) seeking a open-air, baseball- decade, several cities including St.
J facilities hosting two teams have one or only stadium after sharing the Petersburg and Orlando have built major
both tenants seeking a new venue.The Metrodome with the Minnesota Vi- league facilities to gain a franchise•
generic stadium configuration used to kings(NFL).
n> Further,Jacksonville has renovated the
i facilitate spectator seating for baseball Franchise Relocations. in profes- Gator Bowl,constructed in 1946,to gain
and football is criticized for not sional sports,major league franchises its first professional tenant Each city has
providing optimum sight lines or consider relocation for the same
angles of view for either sport. For reasons that expansion teams are
Continued on page 12
FACILITY MANAGER
MAY-JUNE 1996
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