* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL R
(Resolution)
Introduced by: Councilmember Mitchell
A RESOLUTION ENTITLED
A COUNCIL RESOLUTION concerning
Title
Investigative Hearing - BCC + BACVA = Success in the Convention Industry
FOR the purpose of examining the efficacy of merging the Baltimore Convention Center (BCC) and the Baltimore Area Convention and Visitors Association (BACVA) to make certain that the optimum amount of staff time and financial resources are committed to ensuring that the Baltimore Convention Center reaches its full potential as the premier convention facility in the Baltimore metropolitan area.
Body
Recitals
In 2004, the Maryland Stadium Authority authorized the creation of a task force to evaluate the results of a study performed by its staff in conjunction with the staff of the Maryland Department of Business and Economic Development, at the direction of the Maryland General Assembly. The study, done in consultation with the Baltimore Area Convention and Visitors Association, was intended to evaluate "how major metropolitan cities fund convention center operations and to outline business strategies necessary to increase utilization of the convention center."
It was found that, as is the case with convention centers in many metropolitan areas, the Baltimore Convention Center was built by the public sector for the purpose of generating economic development through the spending of convention, meeting, and trade show attendees in Baltimore hotels, restaurants, tourists attractions, art and cultural venues, retail establishments, and for other related services such as transportation. The Baltimore Area Convention and Visitors Association was created to market the facility and retains primarily responsibility for attracting conventions that justify the public investment.
The Baltimore Convention Center was expected to operate at a deficit, as do most convention facilities, but the revenue produced by the Center through state sales tax and city hotel room tax more than offset the expenditures. The original Baltimore Convention Center, built in 1979, not only generated sufficient revenues to retire its debt service several years early, but also generated significant tax revenue for state and local General Funds.
The Baltimore Convention Center, expanded in 1996, at a cost of $156 million - a $50 million investment by the City and $106 million investment by the State - , is not doing nearly as well. In fact, in recent years the State has realized a decline in the net economic impact as measured against the annual expenditures that the State makes for its _ share of the Center operating deficit, as well as the annual debt service. The net economic impact for FY 2006 is projected to be $827,564 far below the estimated returns of $2,243,408 in FY 2004. This has prompted State agency heads and legislators to question the fiscal soundness of renewing the State's financial commitment to the Center, when the current deficit financing arrangement expires June 30, 2008.
When the Baltimore Convention Center opened in 1979, and for many years after, the Baltimore Area Convention and Visitors Association was responsible for convention marketing only, while the Office of Promotion and Tourism managed the leisure travel market. The Task Force was concerned that, in 1988, the responsibilities were merged, and the marketing of the Center suffered. A presentation by the Association, in 2004, revealed that in FY 0005 the organization devoted more of its resources to the leisure market (26.3%) than it did to the convention market (22.3%).
The Task Force concluded that the Baltimore Convention Center has been underperforming over the past few years because, in part, the Baltimore Area Convention and Visitors Association has been unable to attract the number of high revenue producing conventions that are necessary to generate the economic impact the State desires, even though the City remains a highly attractive and successful destination for the leisure travel segment of the tourism market.
The Task Force made of point of stressing that, despite its concerns over the performance of the Baltimore Convention Center, there is no question about the strength of Baltimore as a tourism destination and that the City will become even more so with the development of new attractions such as the Sports Legends at Camden Yards Museum, as well as the revitalization on the West Side.
The Task Force members, however, are not convinced that the entire Baltimore "sales team", which includes not only staff of both the Convention Center and the Association, but the City's hoteliers and other private sector businesses as well, is as unified in its efforts as it can and must be and go further to specifically recommend that the Association should apportion a greater percentage of its resources to conventions marketing - that the Baltimore Convention Center was built and the Baltimore Area Convention and Visitors Association was created for the purpose of attracting conventions and meetings to Baltimore and this, once again, should be the primary mission of the Association.
Whether one supports the building of a new Convention Center Hotel by public or private funding, the success of such a venture will not happen without the proper marketing to guarantee that Baltimore books a monumental share of the convention market.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BALTIMORE, That this Body will examine the efficacy of merging the Baltimore Convention Center (BCC) and the Baltimore Area Convention and Visitors Association (BACVA) to make certain that the optimum amount of staff time and financial resources are committed to ensuring that the Baltimore Convention Center reaches its full potential as the premier convention facility in the Baltimore metropolitan area.
AND BE IT FURTHER RESOLVED, That a copy of this Resolution be sent to the Mayor, the Executive Director of the Maryland Stadium Authority, the Director of the Baltimore Area Convention and Visitors Association, the President of the Baltimore Development Corporation, the Director of Planning, and the Mayor's Legislative Liaison to the City Council.
dlr05-0441~intro/10Aug05
ccres/BCCBAVCA/nf
dlr05-0441~intro/10Aug05
- 2 -
ccres/BCCBAVCA/nf