Archive for the ‘Missouri’ Category

Put casino Downtown, add event center, study urges

Monday, April 1st, 2013

-via St. Joseph News-Press

By Kim Norvell – St. Joseph News-Press

After more than a year of research, an outside company has come up with a $64 million plan that would develop Downtown by moving the casino and building a state-of-the art event center.

The company, Hunden Strategic Partners, came up with five different scenarios and plans that could feasibly be done in St. Joseph, but has suggested one that would use less public funds and would keep Civic Arena intact.

A presentation of the study’s results and alternative scenarios will be given to the City Council at a public work session at 4:15 p.m. Wednesday at City Hall, 1100 Frederick Ave.

Objectives of the main proposal include development of a new casino Downtown, renovation of the Holiday Inn, development of restaurants along Felix Street, improvements to Civic Arena, development of a 550-space parking garage and development of a casino-run event center.

The proposed project would cost $64.2 million — $12.5 million of which would come from public funds; the rest would be paid for by the casino. Funding from the city’s portion would come from a Downtown TIF, Downtown CID and the hotel/motel tax, all of which already have been approved by the council or voters.

As part of the suggested plan, the casino would purchase and rehabilitate the Holiday Inn ($7.4 million); build a larger casino, complete with 150 hotel rooms, a spa and a large meeting facility ($19.8 million); build and manage an entertainment center that would be large enough to attract sporting events and concerts ($16.2 million); and develop an “entertainment district” with diverse restaurants and bars ($8.2 million).

The casino would be located north of the Holiday Inn, in its existing parking lot; the event center would bridge Third Street, closing the street, and connect east to Civic Arena.

The city then would be responsible for building a 550-space parking garage adjacent to the casino ($7.5 million); and providing upgrades to Civic Arena ($5 million).

Upgrades to the arena would make it ADA accessible and incorporate additional bathrooms and concessions. The upgrades would not be enough to make it a state-of-the-art entertainment center, but could draw arena events and conventions.

The plan also includes suggestions for what to do with the old casino space on Waterworks Road, if it were to move Downtown. Multiple plans suggested anything from baseball fields to a marina to a restaurant.

The City Council approved a contract with Hunden Strategic Partners in July 2011 to conduct “a development plan on the location, cost and estimated revenue from an event center, casino and Downtown hotel,” said Clint Thompson, director of Planning & Community Development, in a memo to city staff. One of the catalysts of the study was the 2011 flood, which shuttered the St. Jo Frontier Casino for three months.

Originally it was thought that a larger project would be completed in the area, which would include tearing down Civic Arena and adding even more hotel rooms. However, funding for the larger project scenario would be too great, even with assistance from the state.

The full study can be accessed on the city’s website at www.stjoemo.info/study.

 

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Posted in 2013, Cities, Hotel, Missouri, St. Joseph | Comments Off

Sprinkler system, other upgrades could boost Expo Center bookings

Wednesday, October 24th, 2012
Written by
Amos Bridges

Planned improvements at the Springfield Expo Center could bring more cars and motorcycles — and the wallets of those who love them — to the downtown area.

The City Council approved a plan Sept. 24 to reallocate a portion of hotel-motel tax revenue that previously had gone to Wonders of Wildlife.

In the future, that money will be split between debt repayment and new projects, but about $328,000 accrued in the past year is being used to upgrade the 10-year-old Expo Center on St. Louis Street.

First on the list of recommended improvements: a $250,000 upgrade of the fire sprinkler system in the main hall of the building.

“The way it is right now … we cannot do any kind of exhibits in there that involve automobiles or other motorized vehicles with gasoline in their tanks,” said Tracy Kimberlin, president of the Springfield Convention & Visitors Bureau and a member of the Expo Center Advisory Board.

Car shows and motorcycle association events are examples of events that could be booked, Kimberlin said, adding that “there are more than you might think that have vehicles they want to pull into the exhibit facility. So it opens up the doors.”

Other recommended expenditures include $45,000 for wireless Internet equipment and $20,000 to reconfigure the lighting in the older, trade center portion of the building. If enough money is left over, an electronic sign board also could be added outside the building.

One thing not on the list is a gas-powered generator.

Estimated to cost about $750,000, the generator — meant to reduce the electricity used to cool the building in the hottest parts of the summer — ranked first on an earlier list of Expo Center needs.

The large amount of electricity used at the center during a few summer shows has forced the Expo Center to pay a year-round surcharge based on that peak demand.

Officials hope a recently added, computerized “load-shedding” system will help avoid those charges in the future by monitoring peak energy consumption and shutting off air-conditioning equipment as needed.

“The total electricity being fed into the building is controlled so it doesn’t exceed a certain rate,” said Jonathan Gano, assistant director of public works. Additional sensors have been added that automatically turn off the air conditioning when the loading docks are open.

Gano gave credit for the energy-saving ideas to Robert Henley, who took over in January as general manager of the University Plaza and the Expo Center.

A city report released earlier that month had been critical of John Q. Hammons Hotels and Resorts’ management of the Expo Center. But Gano said Henley “has done an exceptional job, both meeting the requirements in the operating agreement and even going beyond that.”

Henley, who also manages the Tower Club, said load-shedding systems have been added at other Hammons properties to good effect. He said the peak demand surcharges at the Expo Center have been close to $100,000 a year.

The new sprinkler system and other planned improvements will be a boon, as well.

“We’re just really excited to get this done so we can start booking some new shows into the Expo Center,” he said. “That business is good for downtown and hotels around the city … it helps everyone in the community.”

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Posted in 2012, Competitive Assessment, Exposition Center, Missouri, Springfield | Comments Off

Consulting firm may help determine size of convention hotel

Thursday, September 20th, 2012

By Arek Sarkissian II

Monday, February 20, 2012

via – Evansville Courier Press

The Evansville Redevelopment Commission is scheduled Wednesday to decide if a Chicago-based consulting firm will help determine the size of a Downtown convention hotel.

Hunden Strategic Partners also was picked by the outgoing Redevelopment Commission to conduct a $30,000 study that determined a $33 million hotel proposal submitted by the Kunkel Group was financially viable.

Now, Redevelopment Commission President Ed Hafer Jr. said Hunden may get the nod to conduct a study to determine if the 220-room hotel under the Kunkel plan is big enough, and if the city’s current $8 million incentive package is appropriate.

“No one has done a study—really looked at everything—to determine how big this hotel should be,” said Hafer, who was appointed to the Redevelopment Commission by Mayor Lloyd Winnecke. “We aren’t sure also if our incentive package is too big, too poor. There are just too many unknowns.”

The initial request for proposals released by the city a couple years ago asked prospective hotel developers to name a proper number of rooms. White Lodging LLC., of Indianapolis, came back with 220 to 250 rooms, but that deal died during negotiations with the city.

Kunkel President Ben Kunkel said on Monday that a larger deal may be too tough in a delicate financial market. Also, conventions may fill up rooms, but the hotel still must survive during slower periods.

“They’re only looking at one perspective – the convention perspective,” Kunkel said. “That’s not looking at a hotel that is going to thrive as a stand-alone hotel.”

The city would need to provide more investment for a larger hotel. “And again, that larger deal comes with a lot more risk,” he said.

Kunkel said the city should also look at the national hotel investment market. As of six months ago, there were 16 distressed hotels in Chicago selling for half the market price, he said.

“Now, if you’re a lender, which you choose?” he said. “Would you choose a market like Chicago or Evansville?”

Kunkel also said his hotel plan is designed to expand with market demand, but Evansville Convention and Visitors Bureau Director Bob Warren said a larger facility already is needed. No matter the size of a convention, a hotel operator would reserve a percentage of rooms for other business.

“They’re going to keep a certain number of rooms for business outside the convention,” Warren said. “They will do it and it could lead us to trouble.”

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Posted in 2012, Convention Hotel, Evansville, Missouri | Comments Off

Consultant paints expensive picture of Expo Center future

Thursday, September 20th, 2012

Public investment of up to $55 million needed to maximize Expo Center.

Amos Bridges News-Leader

via – Springfield News-Leader

“Go big or go home” was the advice given Thursday to members of the task force trying to determine how to snare more business for Springfield’s Expo Center.

“You have to put a complete package together,” consultant Rob Hunden told the Convention Competitive Assessment Task Force during a conference call Thursday. “Don’t fool yourself into thinking you have the cards to play, ’cause you don’t.”

For Springfield, a competitive hand would require a new, full-service hotel on the vacant lot east of the Expo Center, upgrades at the center and University Plaza Hotel across the street, and development of additional restaurants and retail stores in the immediate area.

“To be successful you really need all of them,” Hunden said, whose firm was hired by the city, Springfield Convention and Visitors Bureau and John Q. Hammons Hotels.

All the improvements would require taxpayer money.

“A bank would not fund that (new) hotel, regardless” of the business it receives from the adjacent Expo Center, said Hunden, who has estimated the total public investment needed at $24 to $55 million. “The private sector’s not going to do it.”

The question, Hunden said, is whether Springfield wants to make the investment.

Under current agreements, the public bears no financial risk associated with the Expo Center, Hunden said. “It’s not really doing much but it’s not costing (taxpayers) anything, either.”

Investing in a competitive convention complex could pay dividends in the form of additional hotel stays, restaurant business and tax revenue, he said, “but there are pitfalls.”

“Most communities your size or larger have a convention center, which makes the market difficult,” he said. “It’s not as big a buck as it used to be, but it’s still very sizeable.”

Hunden said an additional economic impact analysis is needed to determine how much extra tax revenue Springfield could expect to earn for each dollar spent on various upgrades.

Task force members plan to meet within the next few weeks to discuss their next move. Most members appeared to want the additional analysis in hand before Hunden makes a formal presentation to City Council, the Springfield Convention and Visitors Bureau and John Q. Hammons Hotels & Resorts.

Officials skeptical

Burris thanked Hunden on Thursday for an “honest assessment, warts and all.” But he and other task force members didn’t take everything the consultant had to say at face value.

Joe Morrissey, senior VP of operations at Hammons, and Missy Handyside, general manager at Ramada Oasis Hotel & Convention Center, both were skeptical that recommended upgrades at University Plaza would allow the hotel to charge up to $30 more a night.

While several committee members agreed greater connectivity between the the Expo Center area and downtown is needed, Rusty Worley, executive director of the Urban Districts Alliance, questioned whether the area could absorb a half-dozen additional restaurants.

Hunden thinks it will.

“Downtown is just far enough away it’s not visually connected,” he said. Although restaurants four or five blocks away from the Expo Center can help, event organizers will go elsewhere if options aren’t available within a few hundred feet. “The minimum expectation has increased over time.”

Handyside and other task force members suggested Springfield might build on an existing strength and try to focus on snagging sports tournaments, rather than general business conventions. Hunden said the idea had merit, although the sports and recreation niche has become increasingly competitive, as well.

Burris asked whether Springfield might “leapfrog” the competition by putting off any major improvements until the competing facilities going in now begin to show their age.

“The longer you wait, I think the more you’ll have to build to be competitive,” Hunden said.

Additional Facts

Consultant complimentary, too

Still in draft form, consultant Rob Hunden’s assessment of Springfield’s convention facilities doesn’t sugarcoat the city’s position. Critical of facilities at the Expo Center and University Plaza, the report says Springfield also suffers from a reputation as overly traditional and out-of-touch.

“Your description of us as ‘dowdy’ is catching on,” City Manager Greg Burris joked Thursday, prompting Hunden to note that “perception is different than reality.” “There’s not one thing that defines Springfield,” the consultant said, listing the city’s status as a growing regional center, its universities and attractive downtown as valuable strengths.

“What you have (downtown) is authentic, it’s not manufactured,” he said.

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Posted in 2011, Competitive Assessment, Convention Center, Convention Hotel, Exposition Center, Hunden Quoted, Missouri, Rob Hunden, Springfield | Comments Off

Springfield fights negative perceptions

Thursday, September 20th, 2012

Written by

Amos Bridges

11:00 PM, May. 26, 2011

via – Springfield News-Leader

For anyone writing a personal ad or online dating profile, the word “dowdy” is an adjective best avoided.

For a city trying to drum up tourism and convention business, it’s no better.

But the word has been applied to Springfield in a consultant’s evaluation of the city Expo Center, along with “overly traditional … perhaps even out-of- date/out-of-touch.”

The report, by Chicago-based Strategic Partners, identifies a number of facility and infrastructure upgrades needed if Springfield wants to effectively compete with the likes of St. Louis, Branson and cities even farther afield.

The city has an image problem, as well, the report says.

Despite the presence of local universities and the downtown area, the report says, Springfield “has a reputation in the state for being a bit old-fashioned, part of the buckle of the Bible Belt and perhaps not ‘fresh’ and ‘new’ …”

“To a certain degree I don’t argue with that analysis,” said City Manager Greg Burris, noting — as the report does — that outsiders may not be giving Springfield the credit it deserves.

“We’re already a fun place — it’s more us not telling our story very well,” Burris said. “We have conservative values but we’re also not afraid to have fun.”

“They’re not mutually exclusive,” added Jim Anderson, president of the Springfield Area Chamber of Commerce. “I think you can be conservative, as we are, and be progressive, as we are.”

Still, Anderson acknowledged the report — commissioned in part to determine whether a new hotel next to the Expo Center is warranted — isn’t the first to raise the issue.

Previous studies commissioned by the chamber and others have noted the city suffers from negative perceptions.

Fair or not, “the image and the brand of our community remains a challenge,” Anderson said.

The good news is that Springfield has many assets to market, said Rusty Worley, head of the Urban District Alliance.

“I was encouraged by the (consultant’s) comments on the investments made downtown, the restaurants and nightlife we have here and the strong ties with our colleges and universities,” said Worley. “I think those are all strengths for us to build on.”

Discussion of the Expo Center’s shortcomings and other facility needs identified in the report is yet to come. Burris declined to comment ahead of a June 2 meeting, other than to say it’s yet to be determined whether the city ought to spend the money necessary “to play in this convention and expo market.”

“Those are the kinds of conversations we’ll have in the committee meeting when we have a chance to talk to (consultant Rob Hunden),” said Burris, who sits on the task force evaluating the report. “It needs to be a group discussion rather than discussed through the media before the meeting occurs.”

Call for Renovation

In addition to facility upgrades at the Springfield Expo Center, the consultant’s report highlights the need for renovation at the University Plaza Hotel and possible changes to the city’s Expo Center management contract with John Q. Hammons Hotels & Resorts. Justin Harris and Joe Morrissey, two Hammons Hotels representatives on the committee evaluating the report, said Thursday they had not had a chance to review the document in detail. “We’ll be prepared to have some remarks or comments on it” at the June 2 meeting, said Harris, Hammons Hotels’ general counsel. “We’re just not up to speed on it yet.”

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Posted in 2011, Competitive Assessment, Convention Center, Convention Hotel, Exposition Center, Missouri, Springfield | Comments Off

Report: Expo needs more than hotel

Thursday, September 20th, 2012

Written by

Amos Bridges

11:00 PM, May. 25, 2011

via – Springfield News-Leader

An attached, full-service hotel could make the Springfield Expo Center more competitive, but it won’t do the job alone, a consultant’s report said.

Upgrades at the center and the University Plaza Hotel across the street, new restaurants and retail stores are needed as well, if Springfield hopes to compete effectively with Branson and other cities for convention business.

Those improvements altogether could require more than $53 million in private investment, as well as public subsidies and incentives estimated at $24 million to $55 million, according to the report from Chicago consulting firm Hunden Strategic Partners.

Alternatively, the report said connecting the Expo Center to University Plaza while trying to land a smaller, limited-service hotel would lead to some improvement at the cost of a few million dollars, but the benefit would belong mostly to University Plaza, owned by John Q. Hammons Hotels and Resorts.

“It would not benefit the community other than to help save a hotel that may otherwise continue to be a drag on the market,” the report says.

The 185-page report — distributed in draft form to members of a task force that includes city, Convention and Visitors Bureau and Hammons representatives — doesn’t appear to pull punches.

In addition to describing the University Plaza as over-priced and in need of significant renovation, the report says Springfield as a whole suffers from a reputation “as overly traditional, dowdy, perhaps even out-of-date/out-of-touch.”

Developing a more “fun” image that highlights the vigor of the downtown area and involvement of local universities could help attract convention business, the report says. Otherwise, the city could “embrace this existing reputation and market heavily to the family/religious market (and suffer from low price points) …”

Other needs and suggested remedies include:

» The Expo Center, built for $16 million in 2003, needs a kitchen, ballroom and more meeting rooms. The report suggests demolishing the old Sears & Roebuck portion of the building to make room, at a cost of $10 million to $17 million.

» The city’s management contract with Hammons for operation of the center should be renegotiated, the report says. The current contract makes Hammons responsible for any losses, which discourages the company from booking smaller or less-profitable events that still might benefit other businesses.

» About a dozen additional restaurants and retail stores are needed along St. Louis Street to connect the Expo Center area with downtown, the report says, suggesting the city foster private development with subsidies or other public investments, such as a parking garage.

The truth hurts

The promise of such a blunt assessment was one reason HSP was hired, City Manager Greg Burris and CVB President Tracy Kimberlin said.

“That’s what this is all about, to get an outside, expert opinion about our current s ituation and where we go,” said Kimberlin, who provided a copy of the draft report in response to the News-Leader’s request. “I think there are probably things in there that will make everybody squirm a bit, but we need to hear that.”

Kimberlin said members of the city, CVB and Hammons task force are scheduled to meet and discuss the draft June 2.

“We will have Rob Hunden, the consultant who did the report, on the phone,” Kimberlin said. “The committee will be able to ask him questions, suggest any changes they may have and just kind of gather information that may not be contained in the report that they have questions on.”

Hunden then will prepare a final version of the report, which he will present in person to the City Council and other interested parties at a yet-unscheduled time, Kimberlin said, noting the task force will be providing input to the council as well.

The back story

Hunden Strategic Partners, of Chicago, was hired in December to evaluate the competitiveness of Springfield’s convention facilities and recommend the best use for an empty lot east of the Expo Center on St. Louis Street.

The Springfield Convention and Visitors Bureau, the City Council and John Q. Hammons Hotels & Resorts agreed to split the $39,000 cost of the report. City Manager Greg Burris suggested the competitive assessment almost a year ago as the city weighed whether to buy back the 1.7-acre tract east of the Expo Center from Hammons for $1.

Hammons bought the site from the city in 2008 with the promise that he would build an Embassy Suites hotel connected to the center. He failed to do by an April 2010 deadline, despite several extensions from the city, pending a decision by council on a buyback.

Posted in 2011, Competitive Assessment, Convention Center, Convention Hotel, Exposition Center, Hunden Quoted, Missouri, Springfield | Comments Off

City urged not to sell land near Expo Center yet

Thursday, September 20th, 2012

via – Springfield News-Leader

City Council should hold on to the vacant lot next the Springfield Expo Center until a connecting hotel can be built there, a committee recommended Thursday.

When that might happen — and with what money — remained unresolved after a conference call with convention center consultant Rob Hunden.

“Itʼs a quandary. How do you move forward with that much public investment required and not enough public cash flow?” City Manager Greg Burris asked.

Hunden, hired to find ways to make Springfield more competitive in the convention industry, estimates that a $90 million investment in the Expo Center and surrounding facilities is needed. About $40 million of that total would come from the city or other public entities.

In return, Hunden expects the improvements to generate about 750 new jobs and more than $1 billion in new spending over 25 years.

That total includes money visitors would spend at the Expo Center, local hotels and restaurants, plus money employees at those businesses would turn around and spend themselves.

Hunden estimates the extra economic activity will generate an estimated $43 million in additional local taxes during the same period. But Mary Lilly Smith, the cityʼs economic development director, noted Thursday that only about $17 million would be coming to the city, with the rest going to Greene County or other taxing districts.

“I think we have some real challenges in trying to do (initial expansion of the Expo Center) because thatʼs where the public money is,” Smith said.

Finding a developer and financing construction of an adjoining hotel could be difficult right now, as well, said Joe Morrissey, senior vice president of operations at John Q. Hammons Hotels and Resorts.

Hammons Hotelʼs failure to do just that led to the creation of the committee in 2010 and City Councilʼs subsequent decision to buy back the vacant lot.

Morrissey said financing remains difficult. “I donʼt know if it would work.”

Rusty Worley, executive director of Urban Districts Alliance, suggested the city develop a detailed strategic plan for the area around the Expo Center and west to downtown before putting the property up for bid.

“I donʼt think the marketʼs ready …,” he said. “If we buy a little more time, hopefully the market will catch up.”

Several committee members affiliated with the Springfield Convention & Visitors Bureau cautioned against waiting too long, however.

“I donʼt want to see us lose this momentum,” said Melissa Dallas, head of the hospitality and restaurant management department at Missouri State University.

Others suggested the project might be scaled back or altered to make it more affordable.

Hunden said the estimated cost is based on a “worst-case” scenario in which the Expo Center and adjoining hotel are owned or managed by different companies.

“If there was one owner over the entire complex it appears there would be some savings,” said Tracy Kimberlin, president of the visitors bureau.

Hunden agreed, suggesting the public investment might be reduced by about half if that were the case and other improvements were scaled back.

Several committee members said the number of new restaurants and retail stores Hunden has suggested — and a related public parking facility — may be unnecessary.

“A lot of that could happen on its own,” Kimberlin said.

Upgrading the Expo

Consultant Rob Hunden says about $90 million needs to be spent to make Springfieldʼs Expo Center competitive, with about $40 million of that coming from taxpayers. Hereʼs whatʼs included:

Component I

Expo Center expansion and renovation — $17.5 million (all public funding) Connecting, 240-room hotel on vacant lot — $37.8 million ($9.8 million public subsidy)

Total: $55.3 million ($27.3 million in public funding)

Component II

Renovation and expansion of University Plaza Hotel and Convention Center — $21.8 million ($7.2 million public subsidy) Development of 60,000 square feet of restaurant and retail space in UP parking lot — $8.9 million ($2.4 million public subsidy)

New parking deck — $3.6 million (all public funding) Total: $34.3 million ($13.2 million in public funding)

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Posted in 2012, Competitive Assessment, Convention Center, Convention Hotel, Exposition Center, Hunden Quoted, Missouri, Springfield | Comments Off

A possible new vision for the Springfield Expo Center

Thursday, September 20th, 2012

A task force is looking at the economic impact changing the Expo Center into a convention center would have for the city of Springfield

Reporter: Lauren Matter

lmatter@kspr.com

6:07 PM CST, February 23, 2012

via – kspr.com

Springfield’s Expo Center could change into a convention center complete with a new hotel, bigger ballroom and full service kitchen.

In 2011, a study examined what it would take to have a successful complex and if it would have an economic impact on Springfield. A task force is now seeing if they should move forward with those ideas stated in the report or look in another direction. It’s still very early in these plans, but the community is seeing the potentials.

Ryan MacDonald says his restaurant has weathered the storm.

“The last one, two years have been kind of hectic,” MacDonald says. “We’ve had a lot of street improvements downtown, had square improvements downtown.”

The owner of Trolley’s and Flying Tomato in Downtown Springfield says, he knew there would be challenges opening up on Park Central Square, but stuck with it.

“We kept our business downtown, because we see the potential growth in the future,” MacDonald states.

Potential that could be coming from changes right up the street at the Expo Center.

“What we wanted to try to determine is if we built this thing would it have a positive return,” says Convention and Visitor’s Bureau President Tracy Kimberlin.

Kimberlin says the study is a good snapshot of the potentials this project has for Springfield.

“Convention delegates will spend roughly $150 per person per day when they’re here in the community,” Kimberlin recalls.

Not only that, but Kimberlin says it will draw conventions away from cities like St. Louis, Kansas City or even Branson.

“We’re missing a lot of stuff that other communities have. One of the biggest obstacles we face in dealing with meeting planners is the fact that the facilities right now aren’t connected,” Kimberlin says.

There’s still time until those connections happen, but Springfield residents we spoke to say they’re excited about the potential this could bring.

“Springfield always seems slighted or passed by because we didn’t have a convention center here,” says one resident.

But some worry about the cost.

“I guess we would have to see long term what it would do versus what it’s going to take out of our pocketbooks,” another resident says.

“All the businesses in downtown are very pro-convention center,” says MacDonald.

MacDonald says he sees nothing but good things that could come from this, not only his restaurant, but the city he calls home.

“This is kind of the final piece of the puzzle,” he says.

The price tag in the study was $90 million, half of which would need to come from public funding.

Kimberlin says a developer could come in with other ideas and the task force could look at those.

Either way, Kimberlin says tax abatement would be part of the finance picture and it wouldn’t surprise him if some sort of tax increase took place.

On Thursday, the task force made a motion for Springfield City Council to hold onto the lot next to the Expo Center for hotel development in the future.

Council will look over the study, then both will look at how to proceed at a later date.

Copyright © 2012, KSPR-TV

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Report claims Expo failure

Saturday, January 28th, 2012

Report claims Expo failure

via news-leader.com

Inadequate facilities and the lack of a connecting hotel have been cited as reasons Springfieldʼs Expo Center isnʼt doing more business.

In a report distributed to City Council on Tuesday, city staff said John Q. Hammons Hotelsʼ management of the center has fallen short of expectations, as well.

“Staff does not believe the Exposition Center has been marketed or used to its maximum potential,” the report says, noting Hammons Hotels has failed to submit required reports on a regular basis.

The memo, drafted in response to questions posed by Councilman Tom Bieker, said the problems likely fall short of justifying termination of the Hammonsʼ management contract, which runs through at least 2028 and could be extended a decade past that.

City Council voted Nov. 28 to buy back a tract of land next to the Expo Center after Hammons failed to build a connecting hotel as promised.

Echoing a concern contained in an August consultantʼs report, Bieker said finding another developer to build a hotel could be difficult if Hammons continues to manage the Expo Center. He asked whether the city had reason to cancel the contract and what the consequences of doing so would be.

An answer to the latter part of the question is still being drafted, said Mary Lilly Smith, the cityʼs economic development director. The memo distributed Tuesday focuses on the first part.

“We donʼt think thereʼs been a material breach” of the contract, said Smith who worked with Phil Broyles and Jonathan Gano from Public Works and Convention & Visitors Bureau President Tracy Kimberlin to draft the memo.

Still, “we think there are some things that could potentially be better addressed,” Smith said.

Shortcomings mentioned in the report included Hammonsʼ failure to adequately market the facility and failure to coordinate with the CVB to the extent required in the contract.

The memo also notes that Hammons typically has turned over various financial reports and other documentation only when asked, rather than submitting them on the schedule outlined in the contract.

Changes being made

Justin Harris, a senior vice president and spokesman for Hammons Hotels, did not respond Wednesday to a message seeking comment.

Smith said the company has agreed to do a better job of reporting to the city and working with the CVB to market the facility.

But, as noted in the report, some issues are beyond Hammonsʼ control, she said.

In addition to high utility costs and inadequate facilities, Hammons staff “pointed out that there are some things that may be inconsistent just on their face in the operating agreement,” Smith said.

Different provisions in the agreement require Hammons to try to maximize business while at the same time operating “at least on a break-even basis.”

“They shouldnʼt be losing money” hosting shows, Smith said, but hosting shows at a loss might bring in more business.

The Catch-22 in the contract is a consequence of the way the Expo Center was financed, Smith said.

“It was smart on the one hand because the city has no financial responsibility,” she said.

The city issued bonds to build the Expo Center, but the debt is being repaid solely with special taxes assessed on nearby Hammons properties.

“We own the facility, but Mr. Hammons is responsible for all of the debt service on the bonds and he is responsible for any shortfall,” she said. “But he has no incentive to discount the space or to bring in shows that may be money losers on the Expo Center side but have greater economic benefit to the community.”

Councilman reaction

Bieker said Wednesday heʼs only had time to skim the report, but thinks it will help foster improvements.

“I think it was an honest look into what has been happening there,” he said. “Now we know what the deficiencies are … If we can tackle them and correct them and keep on that path, then good. If not, then we need to address that again.”

Kimberlin, from the visitors bureau, said he thinks better coordination with Hammons and other actions outlined in the memo “hopefully will pay dividends.”

A significant increase in business at the Expo Center likely will require additional changes and a larger investment, he said.

“As the consultantʼs report pointed out, the Expo Center is an exhibit hall. It is not a convention center,” Kimberlin said. “I think if we wind up getting a true convention complex over there, changes to the operating agreement certainly would be in order.”

Kimberlin said “itʼs way too early in the process to say” how or when the contract might be amended.

“I think we know we have a problem …,” he said. “How itʼs addressed will depend a lot on what happens with the total complex, whether another hotel developer comes in.”

Another study coming

The Expo Centerʼs ability to attract convention business to Springfield has been a focus of several recent reports.

In a study released in August, consultant Rob Hunden described the Expo Center, which opened in 2003, as underused and ill-equipped to compete with newer convention centers in the region.

Hunden said Springfield needs to “go big or go home” when it comes to investing in a convention center complex.

His initial report, paid for by the city in partnership with John Q. Hammons Hotels and the Springfield Convention & Visitors Bureau, suggested as much as $55 million in public funding might be needed.

CVB President Tracy Kimberlin said a follow-up report analyzing the benefit the city might gain from that investment is almost complete and could be released “hopefully in the next several days.”

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Posted in 2011, Cities, Competitive Assessment, Exposition Center, Hotel, Missouri, Project, Springfield, States, Year | Comments Off

Consultant evaluates city’s Expo Center

Saturday, January 21st, 2012

Consultant evaluates city’s Expo Center

Written by Amos Bridges News-Leader
9:24 AM, Aug. 3, 2011|

As much as $55 million in public funding is needed to make Springfield convention facilities competitive but more study is needed to know whether the investment would pay off.

Those were among the conclusions consultant Rob Hunden presented to City Council and other local officials during a lunch meeting Tuesday at John Q. Hammons’ University Plaza Hotel.

Hammons’ company, in partnership with the city and the Springfield Convention and Visitors Bureau, paid Hunden $39,000 to evaluate the city’s Expo Center and determine the best use for the 1.7-acre lot just east.

The city sold the tract to Hammons in 2008 with the promise that the hotelier would build an Embassy Suites connected to the center. Hammons’ failure to do so means the city can buy back the land for $1, but officials agreed to wait for Hunden’s report before making a decision.

Mayor Jim O’Neal said Tuesday he thinks council should make that decision soon. “The ball’s back in council’s court, we need to decide what to do,” said O’Neal, who thinks “it’s clear (the city) should buy it back.”

“No matter who owns it, I’m of a mind that that piece of land needs to sit still right now,” the mayor said. “There’s no rush to judgment or sense of urgency now.”

O’Neal said he thinks the recommended investment “just doesn’t seem feasible in this economy.”

CVB President Tracy Kimberlin and City Manager Greg Burris acknowledged the funding likely is beyond the city’s reach right now, but said they want the city and other stakeholders to continue the discussion.

“We know that nothing is going to happen any time soon,” Kimberlin said. But by doing nothing, Springfield will continue losing ground to Branson and other cities that have or plan to build new facilities.

“Staying where we are today, we are in effect packing up.”

Even if money is not available right away, plans could be developed, Burris said.

“This could literally be years of work before it gets to the point of spending much money.”

As a next step, he and Kimberlin recommended signing a new contract with Hunden for a follow-up study evaluating the benefit — in new jobs, spending and
tax revenue — the city could expect in return for investing in the Expo Center.

Kimberlin said the CVB and Springfield Area Chamber of Commerce each have agreed to pay for 1/3 of the $15,000 cost of the study if the city will pay the
remainder.

Burris said Tuesday that — seeing no opposition from City Council — he likely will authorize the expense.

“We know how much (the improvements) will cost … now we need to see the other side of the equation,” Burris said. “For us to invest $5,000 to avoid making a $50 million mistake, I think it’s worth it.”

To read the consultant’s report, go to News-Leader.com.

Recommended upgrades

If Springfield wants to compete for convention business, consultant Rob Hunden recommended a number of upgrades to the existing Expo Center and nearby
facilities.

In addition to an estimated $53 million in private investment, the improvements would require between $24 million and $55 million in public investment, as well, according to his report.

Suggested improvements include:
» Construction of a 240-room convention hotel on the former arena site east of the Expo Center.
Private cost: $26 million
Public cost: $5.2 million to $16 million

» Renovation of the Expo Center, including demolition of the old Sears portion of the building (to be replaced with ballrooms, meeting rooms and a kitchen) and construction of pedestrian connections to University Plaza and the new hotel on the old arena site.
Private cost: $0
Public funding: $10.2 million to $17 million

» Renovation of University Plaza Hotel and Convention Center, including an upgrade to a branded hotel.
Private cost: $9.5 million
Public cost: $3.5 million to $8.5 million

» Development of additional restaurants, retail and entertainment venues in the immediate area.
Private cost: $13.1 million
Public cost: $1.8 million to $7.7 million

» Construction of a parking garage with restaurant and retail space next to the Discovery Center.
Private cost: $5 million
Public cost: $3.8 million to $6.3 million

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Posted in 2011, Cities, Competitive Assessment, Exposition Center, Hotel, Missouri, Project, Springfield, States, Year | Comments Off