MassEcon Members Meeting March 16, 2018 Massachusetts Convention - PowerPoint PPT Presentation

MassEcon Members Meeting March 16, 2018

Massachusetts Convention Center Authority (MCCA) The MCCA's mission is to generate significant regional economic activity by attracting conventions, tradeshows, and other events to its world-class facilities while maximizing the investment return for the residents and businesses in the Commonwealth of Massachusetts. 2

665,965 Room Nights MAXIMIZING ECONOMIC IMPACT – FY18 $775 Million $115 Million 336 Economic Events MCCA Impact Spend 732,587 Attendees 3

Convention Center Fund (CCF) • Credited with pledged receipts authorized in Chpt. 152 of Acts of 1997 • Hotel occupancy tax • Sales/meals tax • Sightseeing tours and attractions • Rental car surcharge • Supports debt service of “special obligation” bonds issued in 2004/2005 • Principal balance of $575 million as of August 2017, retired fully by June 2034 • Limited number of other purposes: • MCCA “net cost of operations” • MCCA capital projects funding 4

Total Fund Receipts, Projected v Actual 2005-2017 Source: Original, Series 2005, Revenue Refunding Bonds, Commonwealth of Massachusetts. Actual, Massachusetts State Comptroller. 5

Projected vs Actual Fund Performance FY 2017 ($s in millions) Actual Projected 120 120 100 100 80 80 60 60 40 40 20 20 - - Room Occupancy Room Occupancy Sales/Sightseeing Sales/Sightseeing Vehicle Surcharge Vehicle Surcharge *Source: Series 2005, Revenue Refunding Bonds, Commonwealth of Massachusetts *Source: Massachusetts State Comptroller 6

The Boston Convention & Exhibition Center (BCEC)  Located in Boston’s Seaport District  Minutes from Logan International Airport  2.1 million square feet of space  516,000 square feet of exhibit space  40,020-square-foot Grand Ballroom  82 meeting rooms (160,000 Sq ft.) 7

The Lawn On D  2.7 Acre Outdoor Event Space  420 D Street, South Boston (alongside BCEC)  Programmed: May – October (180 Days)  Over 300,000 annual visitors  Accessible Year Round 2017: Days Open 2017: Number of 2017: Public to the Public Private Events Programing Days (May-October) 108 90 144 8

John B. Hynes Convention Center  Located on Boylston St. in Boston’s historic Back Bay neighborhood  176,480 square feet of exhibit space  38 meeting rooms  24,544 Square foot ballroom  Indoor skybridge connection to several hotels and retail centers 9

MassMutual Center  Springfield, Massachusetts  $70 Million invested in 2004  MGM – Spectra Management  100,000 square feet of meeting space  8,000 Seat Arena  Springfield Thunderbirds  AIC Yellow Jackets 10

Boston Convention Marketing Center  Sell space at the BCEC, the Hynes, and The Lawn On D  Maximize economic benefits to the City of Boston and the State of Massachusetts  Support MCCA teams in promoting and selling services to clients  Build a “memorable” messaging campaign  Build Boston as a “leading edge” convention destination 11

THE ‘BUYING WINDOW’ FOR CUSTOMERS BOOKING BOSTON Peak Room Nights 3-5,000 BCEC 2-3,500 HYNES <1000 BOTH Short-Term 2016 2018 2020 2022 2024 2028 2030 12

1 Ballroom long- 2nd event/meeting term sell block space long-term sell block Occupancy Day 0 7 14 21 28 35 Additional multipurpose space unlocks the BCEC’s selling window 13

BCEC: A Short History 1997 Johnson Report: o • Prioritized exhibit hall space • Initial BCEC business profile: 1/3 Trade, 1/3 Association and 1/3 Corporate. 2011 Convention Partnership Report o Baker Administration paused $1.1B expansion program in • April 2015  Boston’s Competition (By Exhibit Hall Space) 1.) McCormick Place (Chicago, IL) 16.) Walter E. Washington CC (Washington, DC) 17.) Pennsylvania CC (Philadelphia, PA) 2.) Orange County CC (Orlando, FL) 18.) Phoenix CC (Phoenix, AZ) 3.) Las Vegas CC, (Las Vegas NV) 19.) San Diego CC(San Diego, CA) 4.) Georgia World Congress Center (Atlanta, GA) 5.) Ernest N. Morial CC (New Orleans, LA) 20.) Metro Toronto CC (Toronto, ONT) 6.) International Exposition Center (Cleveland, OH) 21.) Colorado CC (Denver, CO) 22.) Indiana CC (Indianapolis, IN) 7.) Mandalay Bay (Las Vegas, NV) 8.) Sands Expo & CC (Las Vegas, NV) 23.) BCEC (Boston, MA) 9.) George R. Brown CC (Houston, TX) 24.) Calvin L. Rampton Salt Place (Salt Lake City, UT) 10.) Donald E. Stephens CC (Rosemont, IL) 25.) Henry B. Gonzalez CC (San Antonio, TX) 11.) Jacob K. Javits CC (New York, NY) 26.) Moscone Center (San Francisco, CA) 12.) Anaheim CC (Anaheim, CA) 27.) Miami Beach CC (Miami Beach, FL) 13.) Kay Bailey Hutchison CC (Dallas, TX) 28.) Minneapolis CC (Minneapolis, MN) 14.) Cobo Center (Detroit, MI) 29.) America’s Center (St. Louis, MO) 15.) Los Angeles CC (Los Angeles, CA)  Our Advantage: SMARTER vs. bigger BCEC business now 2/3 association o MCCA Customer preferences: Proximate hotels, ballroom, o meeting space, exhibition hall 14

BCEC: Future Plans  Feasibility and Master Planning RFP Input from state, city customers • August 2, 2017: RFP Released, record 200+ downloads • September 27, 2107: 7 world-class teams submitted • proposals November 2, 2017: MCCA Design Selection Panel Interviews • November 16, 2017: MCCA board approved contract • negotiation January 18, 2018: MCCA board to vote to approve contract • March 15, 2018: MCCA BOD voted to approve contract with • Populous Architects  Feasibility and master planning services completion Q1 2019  3 Key Questions:  What do we need?  What can we afford?  How do we pay for it? Ballroom, meeting space, flex space, ex-hall, open space. • Over 4M hotel rooms booked thru 2028 • 15

BCEC: Campus Master Planning 16

South Boston Waterfront Development 2005 2017 17

The Omni Boston Hotel • Across Summer St. from BCEC • $550 Million No Public Subsidy • Q1 2021 Targeted Opening • 27,000 sf ballroom • 1050 rooms • 120,000 sf meeting space • Covered access to BCEC • Skybridge access to the new Massport Transportation Center • Culinary Training Center

EASY ACCESS • Minutes away: Boston’s Logan airport is the closest to a major convention center than any other in North America. • Boston is the closest major city Logan International Airport to Western Europe. 5 min. • Logan welcomes non-stop flights from 55 international locations and 75 U.S. cities. BCEC • Millions of additional potential attendees are within easy travel distance by train, car and public transportation. 19

Case Study: BIO 2018 The BIO International Convention • Biotechnology Innovation Organization (BIO) • 16,000+ Biotechnology and pharma leaders in attendance (including 2500+ CEOS). • 41,000 one-on-one partner meetings • 1,800 Exhibitors including 50 state & international pavilions. • 5,000 + Companies represented • 500+ Education sessions 20

Case Study: BIO 2018 – Why Boston? • Massachusetts surpassed California as the #1 biotech hub with over 340 biotech companies and 48,000 employees in Greater Boston. • MassBioEd forecasts a 6.7% increase in BIO-related jobs from 2017 to 2018 in MA. • Venture Capital funding for biopharma in MA is over $3 billion in 2017 • Boston’s size and compact layout allow for easy navigation within the city. • The BCEC is the most technologically advanced convention center in the country. 21

22