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Albany Convention Center Authority Report to the ACCA Board

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Albany Convention Center Authority Report to the ACCA Board Rentals, Rentals, Events, Events, Recreation, Recreation, Technology Technology Hotels Services Hotels Services 37% 25% 37% 25% Ad & Promo Ad & Promo 7% 7% Retail Retail 11% Food & 11% Food & Beverage Beverage 20% 20% Rentals, Events, Recreation, Technology Hotels Services Hotels 37% 25%25% 37% Ad & Promo 7% 7% Retail Retail Food & 11% Food & 11% Beverage Beverage 20% 20% November 20, 2009 Albany Convention Center Authority Report to the ACCA Board Albany Convention Center Authority Board Members: Gavin Donohue, Chair Michael Perrin Vice Chair Michele Vennard, Secretary Hon. John McEneny, Assemblyman Brad Rosenstein Lori Harris Kai Earle Michael Yevoli Contact: Duncan Stewart Executive Director Albany Convention Center Authority 386 Broadway Albany, New York 12207 (518) 275-4920 [email protected] November 20, 2009 Albany Convention Center Authority Report to the ACCA Board Table of Contents Introduction ............................................................................................................... 1 Background................................................................................................................ 2 Market Feasibility ...................................................................................................... 3 Preliminary Design .................................................................................................... 5 Preliminary Probable Cost Model.............................................................................. 10 Anticipated Benefits................................................................................................... 10 Preliminary Operating Proforma................................................................................ 13 Financing and Revenue Plan...................................................................................... 14 Impact on Existing Structures.................................................................................... 16 Environmental............................................................................................................ 17 Historic Preservation Plan.......................................................................................... 18 Community Program.................................................................................................. 19 Attachments 1. Preliminary Probable Cost Model 2. Preliminary Proforma Supporting Documents Available on Request 1. Strategic Advisory Group - Albany Convention Center Market Feasibility Study (2001) 2. Albany Local Development Corporation - Convention Center Task Force Study (2002) 3. Strategic Advisory Group - Albany Convention Center Market Feasibility Update (2004) 4. HVS International - Albany Convention Center Market Study (2007) 5. HVS International - Albany Convention Center Market Study Update (2009) 6. Basile Baumann Prost & Associates Albany Convention Center Supportable Development Range (2007) 7. Hartgen Archeological Associates - Phase 1A Assessment (2007) 8. Hartgen Archeological Associates - Phase 1B Work Plan (2007) 9. Zimmerman/Volk Associates - Residential Market Study (2006) 10. Albany Convention Center Master Plan - Public Meeting and Workshop Minutes (2007 /2008) ________________________________________________________________________________________________________ Report to the ACCA Board Albany Convention Center Authority Report to the ACCA Board Introduction The following serves to document the current status of the Albany Convention Center Authority’s (the Authority) efforts to construct a Convention Center. The Authority intends to construct the Convention Center on an approximately 6 acre site generally bounded by Hudson Avenue, South Pearl Street, Liberty Street and the South Mall Arterial. Future site of the Convention Center Page 1 Albany Convention Center Authority Report to the ACCA Board Background As the capital of New York State, the City of Albany (City) is the appropriate location for the development of a Convention Center, which can benefit the entire State, while simultaneously promoting new investment and growth within the City and surrounding Capital Region. As such, the Albany Convention Center project is viewed as a major physical, economic and social initiative that will position the City as a major competitor for national conventions and as a community of choice for new investment, growth and development. This vision is illustrated by the Authority’s mission statement: “To develop and operate a dynamic convention center facility that maximizes its economic potential through effective leadership, proactive marketing and programming, organizational integrity and transparency, community participation, fiscal responsibility, and the leveraging of economic development opportunities for others through community outreach and inclusion.” For decades, the City has viewed the project site as a blank canvas waiting for a good project to help paint a new enhanced future for New York State’s capital. The project site is underutilized, and consists mostly of vacant space currently used for surface parking lots. Situated adjacent to the Hudson River Waterfront, the proposed site is highly visible from Interstate 787 (I-787), and serves as a major gateway into the City. The development of a Convention Center will redirect growth and development opportunities into the City and Capital Region, it will contribute significantly to Albany’s skyline, and it will promote economic prosperity into an area that has for decades been devastated by urban decay. The City of Albany has a unique opportunity to bring life back into this ruined, underutilized section of Downtown Albany. For years, the City has been successful in developing projects that promote investment into other sections of Downtown, but has struggled to direct investment into this blighted area. During this time, the City and the Authority have worked to create a vision for this area, develop consensus about a shared vision, and determine the best approach for redevelopment. As a result, excitement and momentum has been built around the development of a nationally acclaimed Convention Center will also serve as a model for innovative green building design principles by setting a goal to work towards achieving Leadership in Energy and Environmental Design (LEED®) Silver Certification. Up until 2008, it was the Authority’s intent to construct a 400 room hotel and a 1,100 space parking structure in conjunction with the Convention Center. The hotel would help serve the gap in hotel rooms that previous market studies had indentified. Page 2 Albany Convention Center Authority Report to the ACCA Board Recently however, in response to changing economic conditions and potential financing mechanisms for the project, the Authority has reconsidered its approach to both the hotel and parking garage. It now proposes to partner with a yet unidentified private developer to fund and construct the hotel and partner with other public agencies to develop the parking garage. The Authority would work closely with both entities to ensure that the hotel and parking structure dovetail with the Convention Center to assure the three projects are seamlessly connected in both design and operations. Market Feasibility The vision of a Convention Center in Downtown Albany had its beginnings in the 1996 Capitalize Albany Economic Development Strategy (Capitalize Albany). From this vision, the Albany Plan was born, which identified the Convention Center as one of the key elements in realizing the City goal of “building for the future”. From its inception with Capitalize Albany, the Convention Center has been viewed as one of the important elements that would support new economic opportunities not only in Downtown Albany, but throughout the Capital District. In 2001, the City of Albany Department of Development and Planning along with the Albany Local Development Corporation commissioned the Strategic Advisory Group (SAG) to undertake a market and economic analysis to assess the market for a Convention Center. The study concluded that the Capital District has a number of smaller venues but none have the sufficient capacity to accommodate large conventions, consumer shows or exhibits to meet current market demands. The demand for conference space in Albany is served by the limited facility space available at the Empire State Plaza and Times Union Center. While both facilities provide an important venue for the Capital District, neither facility meets the program criteria that are required to attract regional and statewide conventions. The findings from the 2001 SAG report indicated that there was strong market support for a new Convention Center. The report provided preliminary development estimates and recommended that the project be developed in two phases. Phase 1 would include 214,000 square feet of Convention Center space and a 400 room Hotel. Phase 2 would include an additional 169,000 square feet for a project total of 383,000 square feet at full build-out of the project. In 2004, the Albany County Convention and Visitors Bureau commissioned SAG to update their original findings of 2001 to reflect current market conditions. In their 2004 update, SAG found that while new challenges and new opportunities exist there was no new information that would cause SAG to revise their original findings of 2001. The updated report indicated that the Capital District could significantly increase its market share
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