City Council Budget Committee Presentation on Convention Center Expansion

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  •   The San Diego Convention Center exists to generate money and jobs for the entire San Diego region: We ’ve generated nearly $21 billion in economic impact in 21 years. The center supports more than 12,000 fulltime jobs throughout the county, from the grower in Vista to the manufacturer in Chula Vista, from bus drivers to executive chefs, from housekeepers to lawyers… and it ’s become part of the foundation of San Diego’s third largest industry, tourism. We ’ve generated more than $399 million in Transient-Occupancy Tax and sales taxes paid by attendees in the last 21 years. That doesn’t even include the property taxes and ground leases paid by hotels that wouldn’t have been built without the convention center. That defrays costs to you , the local taxpayer, for police in University City, fire protection, streets, parks and libraries….services that YOU require and enjoy, paid for by visitors. This building reduces every San Diegans ’ tax burden, and that’s the value Mayor Sanders is focused on.
  • City Council Budget Committee Presentation on Convention Center Expansion

    1. 1.
    2. 2. 21 Years of Success 2 Economic Impact $20.8 Billion Direct Attendee Spending $8.6 Billion Tax Revenues $399.6 Million Hotel Room Nights 12.4 million Number of Events 4,684 Attendance 17.2 million
    3. 3. 2009 Mayor’ s Citizen Task Force <ul><li>Broad Community Participation </li></ul><ul><ul><li>Lodging </li></ul></ul><ul><ul><li>Business </li></ul></ul><ul><ul><li>Labor </li></ul></ul><ul><ul><li>Taxpayers </li></ul></ul><ul><ul><li>Environmental </li></ul></ul><ul><li>Recommendation </li></ul><ul><ul><li>Expansion will provide significant economic benefits to City and Region and should proceed </li></ul></ul><ul><ul><li>Rejected “non-contiguous” expansion </li></ul></ul>
    4. 4. Proposed Program (leasable space only) Type of Area Area Exhibit Hall 225,000 Meeting Rooms 101,000 Ballrooms 80,000 Total 405,100
    5. 5. AECOM Analysis of Proposed Expansion Task—Determine ROI <ul><li>Data compiled from meeting and event executives </li></ul><ul><li>25 primary events </li></ul><ul><li>246,861 attendees for 3.86 nights at $185 ADR </li></ul><ul><li>657,000 potential new room nights </li></ul><ul><li>$121,081,000 in new hotel room sales revenue </li></ul><ul><li>Conclusion consistent with data compiled by SDCC </li></ul>
    6. 6. Additional Annual Economic Benefits from Expansion Total Economic Impact $698 Million Direct Delegate Spending $372 Million Occupancy Taxes/Assessments $15.1 Million Sales Tax Revenue $.8 Million Permanent Jobs Generated 6,685
    7. 7. Size Matters Program and Revenue Sensitivity Lost Annual Room Sales Program Reduction $10,534,000 10,000 SF exhibit hall $1,883,000 1,000 SF ballroom
    8. 8. Port Lease
    9. 9. Due Diligence “Test Fit” 150’ tall, 1,266,719 SF and $711,000,000
    10. 10. Design Team Selection
    11. 11. Breakthrough Conceptual Design
    12. 12. Breakthrough Conceptual Design
    13. 13. 750,000 GSF of Contiguous Exhibition Space
    14. 14. 2 Levels with Mezzanine
    15. 15. 80.000 GSF Ballroom on the Bay
    16. 16.
    17. 17.
    18. 18. Accessible Public Realm Space Existing Condition 331,000 SF/7.6 Acres Summer 2011 Design 468,000 SF/10.75 Acres 137,000 SF or 3.15 Acres New Public Realm Space
    19. 19. Public Realm—Access Summer 2011 Design
    20. 20. Olympic Sculpture Garden-Seattle
    21. 21. High Line Park-NYC
    22. 22. Bryant Park—NYC
    23. 23. Current Design
    24. 24. Current Design
    25. 25. Current Design
    26. 26. Current Design
    27. 27. Constructing Cost Estimating Conclusion <ul><li>All required program elements can be constructed for $500 million including reasonable and appropriate design/construction contingency </li></ul><ul><li>With $50 million fund reserved for unanticipated site conditions and entitlement issues, total project costs and total amount of bond proceeds needed to fund the project is $550 million </li></ul><ul><li>Project’ s all-in, maximum cost exposure--$550 million </li></ul>
    28. 28. Financing New Revenues Generated by Expansion <ul><li>Revenue sources proposed but not yet approved </li></ul><ul><ul><li>Port lease revenue and City TOT from Expansion Hotel </li></ul></ul><ul><ul><li>Centre City Project Area tax increment </li></ul></ul><ul><ul><li>Self-assessment by beneficiaries in assessment district or CFD structure </li></ul></ul><ul><ul><ul><li>Lodging Industry </li></ul></ul></ul><ul><ul><ul><li>Downtown food/beverage/retail sales </li></ul></ul></ul><ul><ul><ul><li>City-wide taxicab “flag drop” </li></ul></ul></ul>
    29. 29. Proposed Hotel Room Sales Assessments

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