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CONVENTIONAL WISDOM: 4-DAY SERIES Potential pitfalls Convention center doesn't guarantee economic boon, analysts warn By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Dec. 22, 2015 @ 12:01 am By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Dec. 22, 2015 @ 12:01 am » RELATED CONTENT • Success stories • Conventions needing large central spaces are bypassing Medford... • If we build it, will they come? » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> "Build it and they will come" may work in Hollywood. In the real world, building a convention or conference center guarantees nothing. More often, it means someone else, most likely local taxpayers, are left holding the bag when millions are expended on an expansive hall that draws few bookings. Medford will be taking other cities' successes and boondoggles into consideration when it decides whether to build a convention center here. A $100,000 grant from the state Legislature is funding a feasibility study in the coming months. University of Texas-San Antonio professor Heywood Sanders, a leading foe of convention center sprawl, documented the country's inability to come to grips with the fiscal realities in a 2014 book titled, "Convention Center Follies: Politics, Power, and Public Investment in American Cities." "All too often what you hear from middle-size and small cities is that convention centers will be an economic boon," Sanders says. "They think people will come spend money, yielding economic impact and benefits for their economy. But all too often those things just don't happen." Be it in Portland, Seattle, Chicago or Philadelphia, thinking more groups and larger delegations will show up just because you build a convention center doesn't pan out, Sanders says. The Oregon Convention Center, opened in 1990, offers more than 1 million square feet of convention and exhibition space. Although there are plenty of rooms in the general vicinity, the lingering wart is the lack of an allied hotel. An adjacent 600-room Hyatt Regency has been on the board for years, but has been delayed by legal disputes. "The Oregon Convention Center has underperformed from the time it opened because they don't have a large hotel next door," Sanders says. The Washington State Convention Center last month announced plans for a $1.4 billion expansion, doubling its capacity. The agency says it turned away 300 proposed events because it lacked space. In 2014, the 414,722-square-foot convention center hosted 44 events for out-of-town groups that drew 126,029 attendees, according to the WSCC website. Sanders points out that was a decline from the 135,534 outside visitors in 2013 and the 132,420 in 2012. "I'm not calling it a boondoggle, but their own numbers tell a different story," he says. WSCC opened in 1988, was expanded in 2001 and again in 2010. "In 1997, the convention center saw 183,875 out-of-state attendees and 180,579 in 1998," Sanders says. "Post expansion, the highest number has been 182,406 in 2007. Yet they keep wanting to build." In Chicago, McCormick Place, the largest convention space in the country, is seeing flagging attendance as well, dropping to 2.3 million in 2014 from its record of 3 million in 2001. While Sanders contends McCormick Place is simply too far south from Chicago's downtown, governing authorities have repeatedly added capacity. In Philadelphia, the first year after expanding the Pennsylvania Convention Center, backers said the move would add 283,000 room night stays in 2014. Instead, the figure dropped from 503,000 in 2013 to 397,081. Sanders says smaller and mid-sized cities often see a convention center as a way to revitalize or promote downtown districts. "They often start by asking the wrong questions," Sanders says. Studies can pursue the wrong course and overlook potential pitfalls. "The dilemma is having a realistic basis of understanding what you can plausibly do," he says. The right size of project is often brushed aside, in the quest for a better one. "If you're interested in building what is essentially a community amenity to serve locals and modest degrees of out-of-town visitors, it's perfectly plausible," Sanders says. "But it ought to be done with the understanding of what you get in terms of performance. The notion often abounds with local governments and consultants that there are economic impacts." Given Medford's distance from large metropolitan areas, travel comes into play. "You have to be aware of the competitive landscape when it comes to garnering larger, state and national business," Sanders says. "A city of a similar size located closer to a major metropolitan area may be able to succeed in attracting regional business that a community farther away might find less success." Even though Medford has reasonable airline service for the region's population, there may still be boxes left unchecked on an event planner's list. "If it's a three-day event, they can drop in for two nights, so they can minimize time away from work," says Steve Spickard, managing principal of Land Economics Consultants in the Bay Area. "Airports are really important for the most lucrative overnight business. Time is money, thus conventional wisdom will put you near an airport hub. Planners are thinking how many cities can they get you to with a single flight, rather than routing people through somewhere." Knowing full well of debacles associated with such ventures, the Medford City Council is taking care to sidestep pitfalls by hiring a consultant to sort out the issues and drill down the need during the feasibility study. "We all say we need a conference center, but what we really need is an unbiased perspective," says Medford City Council President Daniel Bunn. "We've heard the horror stories, where the centers have been built, the money spent, then it loses money and needs subsidizing. We can't get swept up in a grand vision of building something we can't support." After the study comes back, Spickard says, it's a good idea to take heed. "The worst thing is to plow ahead with construction on a project that leaves a city, county or whoever with public debt paying a couple million dollars in debt service for 25 years for a white elephant," Spickard says. "I think there are a lot of those in second- and third-tier destinations. Ironically, Kahuna, San Francisco, New Orleans and Boston continue to fill up." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , or on Facebook at https://www.facebook.com/greg.stiles.31 . By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Dec. 22, 2015 @ 12:01 am » Comment or view comments Terms of Service /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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