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expo center city may pay $300,000 a year subsidy possible
City proposes subsidy for Expo CenterDate published: 10/24/2007 BY EMILY BATTLE Fredericksburg leaders are considering subsidizing the Fredericksburg Expo and Convention Center by $300,000 a year for three years. City Manager Phillip Rodenberg and Economic Development Director Kevin Gullette presented the idea to City Council members last night. Council members gave the green light for the proposal to be put on their November agenda. Expo Center owner Tom Ballantine said his facility is generating nearly $700,000 a year in tax revenue for the city, but he's losing money because he faces a disadvantage when he competes with convention centers in other cities. That disadvantage has two causes: Development at Central Park hasn't happened fast enough to provide the hotel rooms and unique attractions that the center needs around it to lure event planners. Most of Fredericksburg's competitors are either publicly built or heavily subsidized, and those governments are willing to give away the cost of renting their facilities to lure convention attendees with money to spend. Since Ballantine doesn't benefit from the tax dollars that outside spending generates, he has no incentive or reason to give away his facilities. The subsidy will come with a performance agreement. It will require the center to show an annual increase in business, give the city some free use of the center and designate the center as Fredericksburg's backup emergency shelter. If the center goes out of business during the three-year period, the city will have a lien on the property to recoup its money. Money for the grant would come from the city's general fund reserve, and the Economic Development Authority might contribute some of it. Rodenberg said paying the subsidy is better than losing the center and its ability to draw tourists to town. "It's our estimation that we really can't live without them," he said. Most privately owned event halls are strictly expo centers that host boat shows, flea markets, home shows and similar events. They don't have the costly banquet halls, kitchens and meeting facilities that convention centers have to keep up. They also don't draw overnight guests from very far away. Most convention centers--like Fredericksburg's top competition in Hampton, Virginia Beach and Richmond--are publicly built and subsidized. Ballantine was--and still is--confident that he can make a private convention center work if it is a part of the Celebrate Virginia tourism campus the Silver Cos. has promoted.
Read more stories about Fredericksburg Date published: 10/24/2007
LAZY CORPORATE WHINER
(posted by
, Oct. 29, 2007 4:35 am)
Tom Ballantine bragged that he was a big boy,could make in his words "assload" of money here. They do NOTHING for the community, they promote crappy shows. Where are the venues that were promised?? He has 15 people on salary that basically sit around doingnothing......there is no true marketing.Theyare notdoing what theyneed to do to survive.When you are Bias to certain groups and basically try to dictate what & who can use your itty bitty convention center , then you limit your income potential.suck it up!
Why?
(posted by
navyorchid
, Oct. 25, 2007 8:44 am)
Why does the city or anyone have to subsidize a privately owned business? We have had a number of businesses recently fail because the economy is no longer supporting their operation. Mr. Ballantine started a business based on a number of things happening...the economy has prevented them from happening and now his business is failing! Let him take out a second mortgage on his home, sell his expensive car, or take out a loan! Why is anyone else other than "customers" responsible???
More factual indiscretions
(posted by
ChrisS
, Oct. 24, 2007 5:55 pm)
For those using flawed comparisons to other facilities. The DC convention center is 2.3 million square feet and individual promoters and entities can book space. The Fred EXPO is 104,000 square feet and likens itself to the Dulles EXPO with the exception of additional meeting rooms and a ball room. Neither of which compare remotely to the DC or even the Richmond Convention center. Fredericksburg EXPO also seems to limits access to outside promoters since it is owned and managed by the companies namesake.
The math is flawed
(posted by
ChrisS
, Oct. 24, 2007 5:21 pm)
Someone needs to look at the math a little closer. Knowing how many events have been in the Expo center and knowing the capacity of the building, It is almost impossible that 500,000 people have been through that building in 20 months. I am also very suspect of the tax numbers stated. I would only trust numbers of an independent firm. If the building fails someone else will pick up the pieces and keep going. Let the free market take care of itself the strong survive and the weak fail
Expo Center is great for F'burg
(posted by
nalgene
, Oct. 24, 2007 3:00 pm)
I am a meeting planner that recently brought a 500 person meeting to the expo center. I was a bit apprehensive at first because F'burg really did not have great meeting space four years ago when I looked at it. I had a wonderful turn out. The customer service was better than most large convention markets. The hotels worked very well with me. The CVB worked very well and led to a successful meeting. If the Expo center was not in Fredericksburg, I would be in Richmond or DC with this 4 day meeting.
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