Archive for May, 2009

‘Expansion Lite’ Proposed for New York City’s Javits Center

Monday, May 11th, 2009

April 24, 2009

By William Ng

A ‘modest’ 40,000-sf exhibit-space addition highlights a new revitalization plan

also intended to make repairs.

After suffering a major setback 15 months ago when its ambitious expansion plan

was scrapped, New York City’s Jacob K. Javits Convention Center may yet again

get new exhibit space, as well as major renovations and repairs.

A far smaller effort compared with a multibillion-dollar initiative that was axed by

ex New York governor Eliot Spitzer in January 2008, the new $463 million plan

would add 40,000 sf of show space to the Javits Center. It also would replace a

leaky roof with a green structure and replenish other fixtures, such as the exterior

curtain wall system.

The new, column-free exhibition space would be housed in a new wing with

independent entry and exit points, and the wing would connect with the existing

building via a second-story concourse.

Work on the project could begin immediately upon state approval, and the Javits

Center would remain in full operation. Funds from a $1.50-per-night hotel

surcharge introduced in 2005 would pay for the project.

Job creation in a down economy is the impetus behind the latest plan. Governor

David A. Paterson and other top city and state officials said it would create 9,000

construction and related jobs. But George Fertitta, CEO of NYC & Co., the city’s

tourism marketing agency, welcomed the project as good news for business

groups, saying “a refreshed and modernized Javits Center will further elevate [the

city] as a premier convention and meetings destination.”

At 765,000 sf of total exhibition space, the two-decade-old Javits Center still ranks

among the country’s biggest convention buildings, but new and expanding

facilities in other destinations are catching up in the “space race,” according to

analyst Rob Hunden, president of Chicago-based Hunden Strategic Partners.New

York City’s enduring popularity and large meetings hotels, such as Time Square’s

Marriott Marquis, have continued to buoy the Big Apple among top U.S.

convention cities.

One prominent Javits user, Ken McAvoy, senior VP of operations for Reed

Exhibitions, and a member of a lobbying group of major Javits clients—called

Friends of Javits—has said before that Reed might have to relocate some of its

trade shows if the Javits Center’s infrastructure didn’t keep up with exhibition

needs. He said the latest plan—with its marshalling yard space, refurbishment of

key building elements, and modest space expansion— “is a step in the right

direction.”

Mayor Michael R. Bloomberg echoed that, saying it was important to move

forward on a Javits Center revitalization but adding that it must be followed by a

long-term plan to meet continuing demand for additional convention space in the

Big Apple.

Any long-term plan for the facility should include a convention hotel of 1,500 to

2,000 sleeping rooms, said Hunden. “Since they have not addressed the hotel

situation, doing a massive expansion [now] would not be prudent,” he said,

referring to the city and state agencies in charge of the facility. “Improving what

they already have is their best bet now.”

An anchor hotel was pursued as part of a major package in 2006 to push the

Javits Center’s exhibition space over the 1 million sf mark while adding

significantly more meeting rooms and ballrooms and revamping its exterior. But

from 2006 to 2008, that $1.8 billion proposal was modified continually and scaled

down until it was canceled early last year due to inflationary costs.

“New York City needs to have a world-class convention hotel with its own meeting

space that enhances what the Javits offers,” said Hunden. “The Javits is one of

the largest convention centers in the country, but it is absolutely difficult for groups

to get good room blocks in New York City.”

Hunden sees the Javits Center and New York City evolving from a bidder for the

country’s biggest conventions to a specialist for the shows that have to be there.

He cited Indianapolis’ expanding Indiana Convention Center—which will have as

much space as the Javits Center in two years, plus a multi-hotel complex—as one

example of how lower-cost destinations are narrowing the gap infrastructurally.

“While New York City is always going to be more costly, the spread between the

Javits and other venues, if not corrected, could force us out,” said Reed’s McAvoy.

Originally published April 20, 2009

EDITORIAL: Keep open mind on Downtown Madison hotel (The Wisconsin State Journal)

Monday, May 11th, 2009

The Wisconsin State JournalMcClatchy-Tribune Regional NewsMar. 26–Given the challenging economy, it might seem like an odd time to be talking about building a major hotel in Downtown Madison.

But the need is real and the potential rewards are great for the city and region.

City officials should keep talking with the potential developer to try to reach a tentative deal that’s good for everybody. Any pitch for a public subsidy deserves scrutiny yet shouldn’t be dismissed out of hand.

Monona Terrace, the city’s Frank Lloyd Wright-inspired convention and community center on Lake Monona, needs more hotel rooms within a couple blocks to attract bigger conventions. A study by Hunden Strategic Partners of Chicago suggests Monona Terrace could pull in more than 100 additional events and millions more in revenue if it had a few hundred more rooms to accommodate larger groups.

After the Marcus Corp. of Milwaukee built the 14-story, 236-room Hilton Madison next to Monona Terrace in 2001, the number of conventions doubled. But the city never considered the single hotel sufficient. And now convention business has leveled off.

So the city is negotiating with Marcus to build a 320-room hotel, likely connected to the convention center by skyway or tunnel. Marcus would restore and convert the historic Madison Municipal Building into a hotel with a tower for guest rooms behind it. The tower would sit on a new parking facility with spots for the city and hotel guests.

The 450-space Government East parking garage across the street would then be demolished to make way for a multi-use project including three floors of city office space.

The outline for the project is intriguing and worth consideration. But any amount of public investment will have to be balanced against competing needs elsewhere in the city.

Downtown Ald. Mike Verveer says he’s keeping an open mind. So should other city officials and taxpayers.

More convention business would help Downtown Madison stay vibrant — something everyone in the region should want. A healthy and fun business climate Downtown can help lure top employers and good-paying jobs while deterring crime and boosting city revenue from its hotel tax.

A lot of questions remain, but so does a big opportunity.

Madison should try to move this exciting project forward in a cost-effective way.

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To see more of The Wisconsin State Journal, or to subscribe to the newspaper, go to http://www.wisconsinstatejournal.com.

Copyright (c) 2009, The Wisconsin State Journal

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