MassEcon Members Meeting. March 16, 2018
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1 MassEcon Members Meeting March 16, 2018
2 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
3 665,965 Room Nights MAXIMIZING ECONOMIC IMPACT FY18 $115 Million MCCA Spend $775 Million Economic Impact 336 Events 732,587 Attendees 3
4 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 $575 million as of August 2017, retired fully by June 2034 Limited number of other purposes: MCCA net cost of operations MCCA capital projects funding 4
5 Total Fund Receipts, Projected v Actual Source: Original, Series 2005, Revenue Refunding Bonds, Commonwealth of Massachusetts. Actual, Massachusetts State Comptroller. 5
6 Projected vs Actual Fund Performance FY 2017 ($s in millions) 120 Projected Room Occupancy Sales/Sightseeing Vehicle Surcharge Actual Room Occupancy Sales/Sightseeing Vehicle Surcharge *Source: Series 2005, Revenue Refunding Bonds, Commonwealth of Massachusetts *Source: Massachusetts State Comptroller 6
7 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
8 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 to the Public (May-October) : Public Programing Days : Number of Private Events 108 8
9 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
10 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
11 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
12 THE BUYING WINDOW FOR CUSTOMERS BOOKING BOSTON Peak Room Nights 3-5,000 BCEC 2-3,500 HYNES <1000 Short-Term BOTH
13 1 Ballroom longterm sell block 2nd event/meeting space long-term sell block Occupancy Day Additional multipurpose space unlocks the BCEC s selling window 13
14 BCEC: A Short History o o 1997 Johnson Report: Prioritized exhibit hall space Initial BCEC business profile: 1/3 Trade, 1/3 Association and 1/3 Corporate Convention Partnership Report Baker Administration paused $1.1B expansion program in April 2015 Boston s Competition (By Exhibit Hall Space) 1.) McCormick Place (Chicago, IL) 2.) Orange County CC (Orlando, FL) 3.) Las Vegas CC, (Las Vegas NV) 4.) Georgia World Congress Center (Atlanta, GA) 5.) Ernest N. Morial CC (New Orleans, LA) 6.) International Exposition Center (Cleveland, OH) 7.) Mandalay Bay (Las Vegas, NV) 8.) Sands Expo & CC (Las Vegas, NV) 9.) George R. Brown CC (Houston, TX) 10.) Donald E. Stephens CC (Rosemont, IL) 11.) Jacob K. Javits CC (New York, NY) 12.) Anaheim CC (Anaheim, CA) 13.) Kay Bailey Hutchison CC (Dallas, TX) 14.) Cobo Center (Detroit, MI) 15.) Los Angeles CC (Los Angeles, CA) 16.) Walter E. Washington CC (Washington, DC) 17.) Pennsylvania CC (Philadelphia, PA) 18.) Phoenix CC (Phoenix, AZ) 19.) San Diego CC(San Diego, CA) 20.) Metro Toronto CC (Toronto, ONT) 21.) Colorado CC (Denver, CO) 22.) Indiana CC (Indianapolis, IN) 23.) BCEC (Boston, MA) 24.) Calvin L. Rampton Salt Place (Salt Lake City, UT) 25.) Henry B. Gonzalez CC (San Antonio, TX) 26.) Moscone Center (San Francisco, CA) 27.) Miami Beach CC (Miami Beach, FL) 28.) Minneapolis CC (Minneapolis, MN) 29.) America s Center (St. Louis, MO) Our Advantage: SMARTER vs. bigger o BCEC business now 2/3 association o MCCA Customer preferences: Proximate hotels, ballroom, meeting space, exhibition hall 14
15 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 Q 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
16 BCEC: Campus Master Planning 16
17 South Boston Waterfront Development
18 The Omni Boston Hotel Across Summer St. from BCEC $550 Million No Public Subsidy Q 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
19 EASY ACCESS Minutes away: Boston s Logan airport is the closest to a major convention center than any other in North America. Logan International Airport Boston is the closest major city to Western Europe. BCEC 5 min. Logan welcomes non-stop flights from 55 international locations and 75 U.S. cities. Millions of additional potential attendees are within easy travel distance by train, car and public transportation. 19
20 Case Study: BIO 2018 The BIO International Convention Biotechnology Innovation Organization (BIO) 16,000+ Biotechnology and pharma leaders in attendance (including CEOS). 41,000 one-on-one partner meetings 1,800 Exhibitors including 50 state & international pavilions. 5,000+ Companies represented 500+ Education sessions 20
21 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 22
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