Strategic and Business Plan PUN ite UM Olin (CM OxnN en olaM ere i alles g Shao) St. Louis Convention and Visitors Commission OTT ye Cea enna Dacor ae var Experts in Convention, Hospitality Saree ne peice one tL% JOHNSON , CONSULTING SECTION! EXECUTIVE SUMMARY 6 East Monroe Street | Fith Flor | Chicago, lincis 60608 | Phone: 312.447 2010 | Fax: 912.444.1125 swyow.chie.com | efohnson@-chie.comJOHNSON CONSULTING Section { ~ Executive Summary | DRAFT February 2016 ‘America’s Center Convention Complex Stratoic and Business Plan St, Lous, Missourt PAGE1 EXECUTIVE SUMMARY CH. Johnson Consulting, Inc. Gohnson Consulting), in association with M. Arthur Gensler, Jz. and Associates, Inc. (Gensler) and Arctutis, were retained by the St. Louis Convention & Visitors Commission ‘o develop a Strategic and Business Plan for the America’s Center Convention Complex, with the objectives to identify, formulate, and recommend a series of actions that address the furure development and success of the existing Convention Complex. Originally opened in 1977, the America’s Center Convention Complex (Cetvantgé Convéation Center and the dtwasd Jones Dome) has been a leading host of premiee meetings and coavehitions throughout its history ‘Today, the America’s Centet Convention Complex contains four unique elements oFWéaue space that include Cervantes Convention Center, the Edward Jones Dome, the Stuis Executive Conferete Cees, andthe Ferrarn Theatre, When combined the Complex offers 502,009/square ety of exhibit space, MBBS square fet of ballzoom space, 11,043 aquare fet of meeting rooms dla heater sei capacity of YA ‘This complex is hugely important for the City of St. Louis, the Coulhty and the State. The Complex anchors 4 entice subsector of the City’s Downtown ab.bengs bundieds of tibusands of people tothe Metro area ‘every year. On average from 2011 through 2014, exelidling the NFL games)the Complex hosted 109 events, generating over 600,000 attendees, 350,000 room nights andl§258 millon Of disect spending, and supporting 3,340 full-time equivalent jobs, annually, \ — However, there have been so challenges. Interviews with past, current and poteatial users reveal that while the America's Center Convention Complex does well with the facilities it has, its approaching a point where its portfolio of events is outgrowing she Giiftent inventory of space. The current ballioom is awiward to use given its size relative to the amount of exhibit spice and the back of house and support functions also constrain thegspace Hofipachieving its, maximum potential as the kitchen and loading docks are not proximate/Histoxically, using J) with thé primary exhibit halls im}the Cerfantes Convention Centes. Considering the Edward Jones Dome as pact of the Exhibit hall packages providing a false sense of scale due to its quality and connectivity tothe rest of the complex)Past users haye also indicated a desise to come back if more exhibit and ballroom space is added. ‘This indicate that StyLouis is a very viable and desirable convention and tradeshow destination due to its location, affordabiignd well run sales effort and operation. he Edwatd Jones Dome as an exteason of exhibit hall space i inconsistent Meanwhile, many facilities that are competitors to the America Center's are expanding, It is important to observe the wave of activity in St. Louis! peer set of facilities, with and without stadiums. Most are conducting ‘major improvements to update and improve theit convention center and adjacent environment for the center. As in the case of St, Louis, the respective recommendations herein will position the Complex to be not just competitive but a market leader for the firure, This is important to the City, County and State, as the ‘6 East Monroe Steet | Fith Flor | Chicago, tins 60608 | Phone: 212.447.2010 | Fax: 312.444.1125 mww.chle.com | clohnson@ehje.comJOHNSON , CONSULTING Section 1 ~ Executive Summary | DRAFT February 2016 ‘America's Center Convention Complex Strategie and Business Plan St. Louis, Missour Pace 2 Ameticas Center is a major influence in economic development and downtown development, ‘The market is there if the community wants it. Reinvestment is essential to stay competitive, A series of planning workshops concluded in a set of improvement and expansion recommendations towards « total build-out of 675,000 square feet of exhibit space, 87,625 squate feet of ballroom, and 145,043 square feet of mecting rooms, amounting to over 907,000 square feet of function space. If improvements are made, it is projected that a minimum 37 percent increas@/in'impacts of all events, combined will occur, and the expansion will position this sector of the dowéliown area to re-energize and sedevelop, Implementing the recommendations is estimated to result in, gfeate®¥olume of activities in the ‘Complex with 171 events, generating neatly 675,000 attendees, over 357]000 room nights, and $355 million of direct spending, and supporting over 4,500 full-time equivalent jabs, annually, upon stabillation of operation. ‘On the contrary, if the facility is not upgraded and expanded, business wilhdecline. Leaving the Complex as- is, is estimated to result in a minimum 14 percent loss ist room nights, Girect spending, and jobs, annually of what is currently being achieved. With the improvements it is projeeted that the above impacts could increase by 37 percent, On a final note, with the Rams lease terminated, St. DObiiphas the opportunity to capitalize on additional event days in the Dome, However, the Dome in is présent stidium,configuration is not ideal for meetings and conventions and a retrofit of the space is required, By addressing the functional enhancements proposed in this report, the America’s Center wilhadd 36 incremental event days and 67,000 multi-day visitors, plus two @ consumer shows 10 thé center’s book of business, We expect this improved volume of meetings, tradeshows and events to more)than replace the loss of commercial activity the facility has forgone with the departute of the Rams. c 6 East Monros Steet | Fith Floor | Chicago, linois 60609 | Phone: 912.447.2010 | Faxe 912.444.1125, ww.chlc.com | clohneon@chic.comJOHNSON CONSULTING SECTION IL INTRODUCTION Consulting Team 6 East Monroe Steet | Fith Foor | Chicago, tots 60003 | Phone: 312.247 2010 | Fax: 312.444.1125, wwu.chi.com | clohneon @chie.comJOHNSON *, CONSULTING Secon 2~inroduston | DRAFT Februaty 2016 -Amsia’s Canter Convention Complex Seat and Businass Plan ~ St Lou, Misour PAGES INTRODUCTION CH, Jobason Consulting, Inc. Johnson Consulting), in association with M, Arthur Gensler, Jr. and Associates, Inc. Gensler) and Arcturis, were retained by the Se. Louis Convention & Visitors Commission to develop a Strategic and Business Plan for the America’s Center Convention Complex, with the objectives to identify, formulate, and recommend a seties of actions that address the Future development and success of the existing Convention Complex. » BRIEF HISTORY OF AMERICA’S CENTER DEVELOPMENT Ona peed in 177, th Arcs Caner Comensn Complex cyl convon Can te Edward Jones Dome) has been a leading host of premier meetings and! co ughout its history. CENTER OPENS - 1977 ‘The facility orginally opened as the Cesvantes Convention Genter in 197 It featured age ‘gross square feet of exhibit space and 12 loading docks on Cole Suet. Theatre to the center was on Convention Plaza, There was no ballroom at the time, and theie were four gaepings of meeting rooms, two on each floor: SOUTHERN EXPANSION - 1999 \ In 1993, che facility underwent a major expansion tb th€ south. TREREly renamed America’s Center opened ‘with 340,000 gross square feet of exhibit space. Theie are now 12/oading docks on Cole St. and four on 9th Suet, ‘The main entrance igffhoved #8, Washington Avenue and the facility sees the addition of a 28,000 square foot ballroom and ey 411-e4p Ferrara Theatre) $280 mili, Directly conn multipurpose meeting and The facility saw a)$27 millidn facelift in 2007 (cating areas, rst Poor artwork, and Plaza Lobby ceiling upgrades). The Ameri@iS Center saw an additional $48 million renovation from 2009-13. This project included 2 new roof, enovated elevators, an additional elevator, all new escalators, a new lighting system, new carpet, and kitchen and restroom upgrades, Currently, there is a planned $2 million renovation to replace the old analog security camera system with a new digital system and a $4 million Wi-Fi installation in the Dome. In addition to the Convention Center improvements, the Fdward Jones Dome was recently upgraded at a ost of $30 million to improve its ability to host Football events. {6 East Monroe Sireet | Fith Floor | Chicago, ilinois 60608 | Phone: 212.447.2010 | Fax: 812.444.1125 wwwchie.com | clohneon@enje.com‘America's Center Convention Complox Strategic and Business Plan St Lous, Misscur Section 2— intoduetion | DRAFT February 2018 Vee. JOHNSON Page 4 *, CONSULTING ‘The following chart summarizes key milestones as described above. Cervantes Center expansion opens 240,000 SF, 28,000 SF baltoom, 1.411 seat Ferara Thasire, ome under construction [Complex renamed America’s Center) Cervantes Convention Center opens : 240,000 SF, no balroom, 22 rooms Dame tt Ter enveton 4-Year Convention Center Dome Opens Renovation Complete 67,000 seats, 145,000 SF for ‘$48 millon, 2009-2013 Aim. a ‘Today the Ametica’s;Genter Convention Complex contains four unique elements of venue space that include Cervantes Cofivention Cent, the Edwai Jortes Dome, the St. Louis Executive Conference Center, and the Ferrara heatre. The breakdown of fungtion space square footage is summasized in Table 2-1 and when combiftedp the Complex offers 502,000 square feet of exhibit space, 27,625 square feet of ballroom space, 119,043 squate feet of mecting fobms, and a theater seating capacity of 1,411. ‘THE CONVENTION COMPLEX TODAY 6 Eest Monroe Street | Fith For | Chicago, line's 60603 | Phone: 312.447 2010 | Fax 912.444 1125 unu.chi.com | ciohnson@chieconJOHNSON CONSULTING ‘Section 2~ Intoduction | DRAFT February 2016 ? ‘Amarica's Center Convention Complex Saegle ane Business Plan ~ St. Loti, Missour) PAGES Table 241 ae eeu aeukesat aes ‘Summary of Function Sp: Cervantes Convention Genter Edward Jones Dome Executive Conference Center Ferrara Theatre “EXCLUDING seplementa less B spaces tha ar comprised al hg oes, ft nd storage oo (20298 Sn tah, “inoue Dome or are (eet retract, 145,000 SFV and The Ang (17,000 SF) ‘Source merits Gorter Comention Complex Depa dotnson Goneng ‘The versatility of spaces is intended co enable a wide range Ofyusers and attract major conventions, tuadeshows, and arena events, among others ECONOMIC VITALITY OF AMERICA’S) CENTER (CONVENTION COMPLEX ‘This complex is hugely important for the City of St,Fouis, the Cally and the State. The Complex anchors an entire subsector of the City's Downtown and bring millions of people to the Metzo area every yeas. Table 2-2 summatizes average angtal perforthance statstics\of America’s Center Convention Complex between 2011 and 2014, Please ng Ht the figues in Table 2-2 amily not add, due to averaging and rounding, {6 East Monroe Street | Fith Foor | Chicago, inols 0603 | Prono: 312.447.2010 | Fax 312.444.1125 www.chic.com | clonnson@chie-comea ae CaP J04NSON ‘Amesca's Contr Convontion Complex Sategie and Business Pl ~ Si, Loui, Missou PAGES », CONSULTING Table22 Ree amerika Conn r ee ne teenie eee een Le Cee Coane oe Ceci eeecrcc iy Ce emo Pen Activities # of Events | Event Days: ‘Attendance Income (Sutilion) Event Income Food and Beverage Income Impact (SMiltion) Est, Direct Impact on St. Louis Economy ‘Relecin vt scxrmodsodh CorantecO St Louis ECE Jones Dome. Note: A Fors ar ot neger, a3 tay ao four yea ‘Source: St. Louls Convention & Vistors Commission, 6. srént income, and $10.2 milion in food and beverage income. The Complex is estimate e $258 million of direct spending, on average annually from 2011 through 29 utilized to estimate this impact is described in Section 5) WM escved in Section 5, the Complex today geneats well over an ual Ifthe recommendations presented in the report are implemented, ompetitve on a national bass, 6 East Monroe Steet | ith Floor | Chicago, inal 60603 | Phone: 212.487-2010 | Fan: 912.444.1125 ‘Www.chic.com | cjohnson@echic.com‘Section 2 — intreduetion | DRAFT February 2016 re Cee JOHNSON America's Center Convention Complex Satgle and Business Plan St, Louis, Missouri Pace? , CONSULTING Table 23 ae Reem ina erta sd aa eke In ee at atl FYE 2011 thru FYE 2014 ‘otal Operating Revenue Total ee ease si7e4s Se Aner Carr Comeron aro nn Coat As shown on the table, on average from Fiscal Year Ending/((*YE) 2011 through FYE 20R4ythe Complex generated $14.1 million of operating revenue and incutred/$17.2 million iioperating expenditures, resulting in an average annual operating deficit of $3.2 milion. This leveOf defies inline with other natioeal venues of this size and market orientation, The primary metric conventiomyenues are measured by is hotel room night generation, and in the ease of America’s\Genter, its deficit amoufitis earned back many times over by the hotel room nights and spending the presence of Alerica’s Center genenites. DESIGN CHALLENGES IDENTIFIED BY\VANAGEMENT AND USERS Nationally, convention centers.at6ipoing through robust upgfade and expansion, More importantly the environments around the coftvention éenters are finally achieving the economic redevelopment ambitions intended when these faeiite® were onginally built genePitions ago. This is occutring for two key reasons. First is the efficient sole conventions, tradélShows,and consumer shows have in business to business and business to consumer marketing. Industry research and the level of business occurring at well-designed and positioned facilites Ts testimony to thedimportance of face to face mectings. Second, demographics are ‘working i favor of downtown ¥italization, Younger and older people want to have an active place to live and worksiCenvention centers, ballparks, “museums and natural settings are combining to stimulate this tenaissance downtown environments azound convention ceatess, ‘The America’s Center. is poiséd to improve and lever these two trends, In fact it must if itis going to remain competitive, The desiga}Work for the 1993 expansion and the Dome opening in 1995 generated a number of consequences that have impacted the functionality and desirability of the America's Center Complex. Both ‘management and users have identified a number of these challenges that are summatized below: + Patking garage location prohibits north and south building connections. = No direct access to Balltoom from Cole Street or 9th Street loading docks for event load in/out. {6 East Monroe Street | Fith Floor | Chicago, tins 6050 | Phone: 312.447.2010 | Fex: 312.444.1125 worw.chle.com | elonnson@ehje.comJOHNSON CONSULTING ‘Socton 2~ Intoduetion | DRAFT February 2016 ‘America’s Center Convention Complex Strategic and Business Plan ~ St, Lous, Missoue Pace a + No direct access to Ballroom from Kitchen at Cole Street basement. * No service corridors on any level from Cole Street to Washington Avenue, * No dock access for Hall 2 and Hall 3, + Balltoom service comtidor is also Meeting Room access contidor so no food service in Ballroom if used a5 meeting rooms. + No dignitary secured patking Presidential, Congressional visits, VIP Speakers). = No incentive for garage to be properly maintained, "Holiday Ina connection cut off. p + Mismatch between the quality level of the Donté and the Copéention Center when used for exhibit events. i Flow between Edward Jones Dome lait, Cervantes Convention”Center is restricted via the connecting contdor when using the Dothe as edibiespace. 7 \ y Attendee flow between the two buildings is ¥éverely restricted due to limited connectivity. y \ tations, ah improvement plan that addsesses these original weaknesses, must With these original design. tiginal developmiéat, competitor buildings have built new ballrooms Biabaynde improvements to theis buildings addressing L design, lik@\the factors listed above, and have expanded their exhibit space. Also, fe uth lbs ence ft impovenen Reinga sens only use the center perhaps {0h a third ofc stay, the balance of the day is ia hotels and out shopping, ‘meeting room spaceyAnother significant challenge that has arisen is the connectivity between the Cervantes Convention Center and the Edward Jones Dome. The main circulation point between the two is too nartow to accommodate the thousands of people that pass from one side to the other and the annex connection when the Dome is used for exhibit space is also constrained and serves as a barrier for attendees passing from the exhibit halls in the Cervantes Convention Center to the floor of the dome. Finally, past users need more exhibit space and a large ballroom and more loading docks to even consider coming back to St. Louis. These 6 East Monroe Street | Fith Floor | Chicago no's 60608 | Phone: 312.447 2010 | Fax: 912.448.1125 vnmu.chie.com | elohnson@chie.comJOHNSON , CONSULTING ‘Section 2 —Inrocuetion | DRAFT February 2015 ‘America’s Center Convention Complex Stratogc and Business Plan — St, Louls, Missourt PAGES same improvements will keep the convention center competitive nationally for the next generation of service to the community. “This report focuses on the Convention Center and Dome physical improvements and priorities. A ‘companion analysis needs to be developed at this same level of detail for the District around the Convention Center, The entire area between and around the America’s Center and the surrounding hotels and entertainment venues should be viewed as a Convention, Sports and EatertainmedeDistrct, which shall be made more attractive to greater volume of convention business. ‘The case studp'reseatch in this report sets the stage for this future work, Broader community buy in to the improvement! Blo wil be ned if htc district approach is ultimately developed “~» CONSULTING TEAM oN a f ry St. Louis Convention and Visitors Commission (SLCVC) haf engaged\a team of consultant to develop a strategic and business plan for America’s Center Convention Gomplex redevelopment J + Johnson Consulting is a leading real estate and hospitfconsuling firm based in Chicago. ‘The firm specializes in convention centeflland hospitality steategie)planning and has worked in the St. Louis market area for over 2 decades. Johns6iljGonsulting has led 6F participated ia the development process for the cop performing convention center developments if the U.S. and internationally + Gensler is 2 global design, fim grounded) in the belief that great design optimizes business performance and han potelial. Its 4,700 practitioners networked across 46 offices use global innovate at cvéef scale. Gensler’s primary focus is on helping our DavsiPiisions andor teic assets. Whether it is planning & new whan district, designing a new eomporate campus or refreshing a retailer's brand, Gensler strives to make eapcopleoeepy mop inspiring, more eet and mote inpatl n firm headquartered in St. Louis that specializes in planning, archtecrure, design, graphie Qesign and landscape architecture. Founded in 1977, Arctuis is a women. ownedhbasiness that has additional offices in Texas, and is ranked in the top 20 intetior design and castles bythe St. Louis Business Journal. 6 East Monroe Street | Fith Floor | Chicago, lhois 60009 | Phone: 812.447.2010 | Fax: 912.444.1125 wumu.che.com | clohnson@chiz.comJOHNSON ¥ 1, CONSULTING SECTION Ill STRATEGIC REVIEW PROCESS Interviews Analysis and Sommary of Data Ss 8 East Monroa Steet | Fit Floor | Chicago, line's 60603 | Phone: 812.447.2010 | Faxc 912.444.1125 wunw.chie.com | ejohneon@-ehie.comSeaton 3 - Statege Review Process | DRAFT February 2016 JOHNSON ‘Ameica's Genter Convention Complex Stage and Business Plan ~St, Lous, Mlssour PAGE 10 v CONSULTING STRATEGIC REVIEW PROCESS ‘This section discusses the process undertaken in developing the Strategic and Business Plan for the America’s Center Convention Complex, including interviews, analysis of historical data, and stakeholder engagement. INTERVIEWS In addition to the stakeholder meeting facilitated by Johnson Consulting and Genslg, a cxtcal component of the projectis to understand how current, past and furore users have used, ot plan,t0 te, the complex and to identify what is working well and where improvements are needed, Johnson Céfeuking worked closely with the St Louis Convention and Visors Commission SLCVO) and the manage ‘meeting planners to interview. Our firm then spent time engagidg the mee planners through a coop nr tse ton gt Ae poet Rr ay of enues used, and how St. Louis compares. The mecting plafners were in chee distndh catégores that im to identify a range of inchuded current users, past users, and potential users. For exfrent users ‘has important co, Plc farare space needs of their event and what other factors are ifmportahe co dsém. Past users provided insight as 10 ‘why they left for a different venue and potential users provided ini into the decision making process and hhow they consider St, Louis among competing destinations ‘The interviewees included: "American Academy of Neurology "American Association of OHthedontists §—\ + Ametican ChemicalSociery iY = Ameticantort Experient (epeesentin ANALYSIS AND,SUMMARY OF HISTORICAL DATA ‘The management of America’s Center Convention Complex provided historical demand and financial statistics of the facility for the ast four full years. They are summarized in the following tables ‘Table 3-1 shows histotical event demand fom 2011 through 2014, {6 East Monroe Steet | Fit Floor | Chicago, tiols 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 ‘www. chic-com | clohnson@chie.comSooton 3 Strategie Revew Proess | DRAFT February 2016 ei 2@F JOHNSON = ; CONSULTING Table 34 EEE Non Exhibit Events ‘Consumer ‘Shows EE Connors fn Trad Shows Exhibit Events CGonvensons and Trade Shows 28 at 2 2 EI 2 1 4 SConsuirer Shows 6 b 3 7 5 o 4 LT EEN Bee) ‘Non-Exnibt Events ‘Meeings and Seminars 59 o a 18 se a 2 1 Banquets 2 2 2 19 20 6 4 o (Concerts and Entertainment 2 2 2 4 3 ° 2 o ‘Sporting Evens - Rame Game ° 10 10 10 10 ° 10 a Sports and Tourism Everts 403 16 10 12 4 7 2 “Retecteg errs scormested Contes CO. St Ls £C. andor Ferara Test, bt Nn Ebnard.Jenss Dore, "afc esersasconmodsee ® Dei ut NOT aA etn tor ces. ““Rfsing evens accords n CC, COG ndlr Testo IM eODNGIOM win Danes wot _Soure: St Lous Canvenion& UsiersConmisin neon Conlin As showny6h the table, the Complex hosteif’an average of 119 events from 2011 through 2014, including a combinéd 86 events at the “Cehter onlf.” ie., accommodated in Cervantes Convention Center, St. Louis Exetutive Gonference Center, and/or Ferrara Theater, but not in the Edward Jones Dome; 26 events at the “Dome onlyJand seven eveis accommodated in “combined facilities,” i. in Dome AND any of the Convention Centem)Executiy# Conference Center, and/or Theater. Table 3-2 shows histofltal event-days from 2011 through 2014. 6 East Monroe Street | Fith Flor | Chicago tinois 60608 | Phone: 312.487.2010 | Fax: 312.444.1125 mnw.ehle.com | clohngon@ehie.comSection 3 ~ Strategic Review Process | DRAFT February 2016 JOHNSON America’s Center Convention Complex Stratege and Business Pan Si, Lui, Mssour Pace 12 , CONSULTING Table 3-2 Exhibit Events CConvontons and Trad Shows saat 88) 101 7 4 a Consumer Shows. 20 23, 25 24 23 18 ‘ 4 (St LT SR NET EDY EOTPGY ETIEO HRN ATTITA] Non Exhibit Events Meeings and Seminars 129 o 60 4“ 6 78 4 2 Benque's 26 21 25 2 2 8 5 o Concerts and Entertainment 2 2 2 4 3 ° 2 o Sporing Evert - Rams Game ° 10 0 10 10 o 0 ° 10 10 5 ‘Spocs and Tourism Events 0 2 26 2 24 “Roloc wrens scconmocstoa Candies CC, St Las ECC ander Farare Pst, bt NOT in Edd ence Das, “Racing evrt accommosttod in Daeenj ct NOTA wt hs ier‘. “Aten eves acon CC. EOG, ger Test MCSA th Cameos wa Soares St aus Comenton& store Commission uson Conslng ‘As shown,oh the table, the COmplex was died for an average of 268 event-days from 2011 through 2014, includia.a combined 201 eventdays atthe Center only, 35 eveat-days at the Dome only, and 32 event-days at die comBlined facilites. ‘Table 3-3 shows historical attendance from 2011 through 2014. 6 East Monroe Steet | Fth Feor | Chicago itinoks 60603 | Phone: 212.447.2010 | Fax: 312.464.1125, wonu che.com | eiohnson@chie.com‘Section 3 Stratogle Review Process | DRAFT February 2016 adie JOHNSON America’s Contor Convention Complex Strategic and Business Plan —St Loui, Missouri PAGE 19 }, CONSULTING Table 3-3 rey 1,200,000 Nest 1,000,000 800,000 600,000 400,000 200,000 Exhibit Events f Convenion and Trade Soows 142400.» «250400 173.450 «155.808 Dte0sts 84289 «6.250 ——90,000 Consumer Shows 196500 305500. 128497 117.631 Mi2.2e2 60.530 5.000 a0.752 Non-Exhibt Events Mostings and Sarinars ‘55020 74528 \ 50607 sa710 saya aso asta BBS Benquss s9400 5745 \i22s0 alors 18518 ato tae ° CConcorte and Entoainmant 105000 105000 Yoga 161 G02pe"Fz0,087 a3 8,7a4 o SporingEvonis -Rams Games 38721 444ang 44/208 449.405 400.128 0 29,128, 0 ese ‘00000. 521425 T0KJ35 0987S 129783 25.338 80.4G 25.000 “Aaooing svat accommodate 9 Candtes CO St. Lis ECC, ander erase Fave, ut NOT Emad Jonas Doe. afleciny ores ecormedetod I Darah bt NOT any fie oer aes. "React event scconmocsedn Co, EO, ange Tear WeOMBaEPN win Dome 3s we, ours: aus Centon a Vision Commie tana Corea) As shown/6h the table, the Ebmplex genebifed an average of 1,040,000 attendees from 2011 through 2014, includigg a combined 215,977 attendees At the Center only, 664,196 attendees at the Dome only, and 160,627 attefidees athe combined facilites. “Table 3-4 shows Ristorical evght income from 2011 through 2014. ‘East Monroe Street | Fith Floor | Chicago, itinois 60603 | Phone: 312.447.2010 | Fax: 912.444.1125 www chie.com | ciohnson@chie.comSection 3 Strategie Review Process | DRAFT February 2016 ae JOHNSON none Center Convention Complex Sttegic and Business Plan ~ St. Louis, Missour CONSULTING Table 3-4 mm Non Est Events Consumer ‘Shows mm Conventione ‘nd Trade Shon Exhibit Events ¢ Conventions and Trade Shows «$1,542 «$1851 SI7eo «HNTB S.e61 Stato Consumer Shows 1105 Tedd 1535 as Bt 30 55 Non-Exhibt Events \ Meetngs and Seminars $715 $1090 \ $488) ss11 685 ss S80 sa Banquets ° ° 9 5 2 0 2 © (Concerts and Entertainment sez ts ge 1080 ey” 732 1 ot ° Sporting Event - Rame Games st soo | |e 70g eat 0 oot ° Sports and Tourim Everts Fao 1007 Tishaa 33 sec eens acarmacta Ct 0, nd Fara Te bt OT m Ear ore Dore “eect rs esmnedn bone maylio or sstan. recy ts srmeasd Ce ESB a aa wt os wa. Sse St Lau ont Vator Co eon Coen As shown@h the table, the Cimplex generajéd an average of $6.5 million in event income from 2011 through 2014, id@luding a combined $236 millioh from events at the Center only, $2.89 million from events at the Dofhe onlfand $1.21 million ftom events at combined facilites. ‘Table 3-5 shows Bistorical food and beverage income from 2011 through 2014. {East Monroe Street | Fith Floor | Chicago, linois 60608 | Phone: 312.447.2010 | Fax: 312.444.1125 ww.chle.com | elohnsen@echie.comSection 3 ~ Stategie Review Pr | DRAFT Febru 2018 JOHNSON ‘America’s Center Convention Complex Srategle and Bushes Plan St Lous, Mssour PAGES Y ¥ °, CONSULTING Table 35 $12,500 EEE Non tii Events $10,000 mmmconsumar g eos ‘7500 mmm Conventions * $5,000 nd Trade Shows e500 Exhibit Events Gomvontons end Trade Shows «$5409 «$5,185 $5012 «$4588 $5555 saz77 Sais sae Consumer Shows ‘a7 S31 i 500 tt 32 137 Non-Exhibit Events Mectngs end Seminars seo sie \ $1,721 sites syet¢ 61,155.20 ast Banquets Ht sv \ bag ies Maro 50 an ° (Concerts and Entainment nom 1am \ 122180” 1.208 0 128 ° Sporting Evants - Rama Gomes ° 0 ° 2 ° ° ° ° 0096700 73 5st 1st e ‘nd Touran Evects Bah 1123 ‘Refechy events sommeadied AEWARRS Ct. Ls ECC, arse Fara West, bt NOT in Ee Jee Dr “olesng ovals sccormodatean Dore oy but NOT anyother bas *etecing eves ccormocsien CC, EOD andes Tester Cena nh Dae a wk, Sours Leas Comentan& Vso: Cormicien Yoon Consult As showny6n the table, the @bmplex genBHied an average of $10.19 million in food and beverage income fom 204) through 2014, including a combined $5. million from events at the Center only, §2:34 million ‘ros event@lar the Dome only, and $2.65 million from events at combined facilites ‘Table 3-6 shows historical fingficial statements from FYE 2011 though FYE 2014. {6 East Monroe Street | Fith Floor | Chicago, linols 60803 | Phone: 212.447.2010 | Fax: 312.444.1125 wuchic.com | clohneon@ehiecomSeaton 3~ ‘Amorica’s Centor Conventon Complox Strategic and Business Plan ~ St Louis, Missouri PAGE 16 Strategie Review Process | DRAFT February 2016 Table 3-6 Operating Revenue Building Rental $2,996 Food and Beverage 3,589 Event Reimbursements 1,345 Box Office Revenues: 852 All Other Revenue me 3,242 Operating Expenditures Porsonnel $6,889 Ublties 2.484 Cleaning Services Building Services 1,985 Property & Liability Insurance 1,729 All Other Expenditures 314 $4,108 4.664 1.358 1216 4147 $7,054, 2.478 ait 4,907 3.919 ‘Source: America's Center Convention Complex, Jofnson Consulting $5,050 2,884 1415 ‘908 3.2964 $7,092 2617) 2184 2,045 2878 $4,355) 4949 4718 4,819 3. $7,168 2,904 2.362 2.051 3.698 JOHNSON CONSULTING ¥ ee Statement of Revenue and Expenditures ($000) L : aCe $4,128 20% 3047 27% 1459 10% 4,199 9% 53.429 24% 41% 15% 2,202 13% 1,993 1% 3452 20% ‘As shown on the table, on averagefrom PYE 2011 through FYE,2014, the Complex generated $14.1 million ting revenue and speft $172 hnllion in operiting expenditures, resulting in an operating deficit of is a very fayorable level of deficit whény€ompared to other convention centers nationally ‘On the vente side, building thtal, S08 nd: beverages and event reimbursements are the top three revenue categories. On the expenditures side, personnel expenses are the top category at 41 percent, followed by utilities and cleafitag/ Bulleting services, Figure 3/1 shows historical operating evenue and expenditures of the America’s Center Convention Complex ftom FYE 2007 through FYE 2014. {East Monroe Stee | Filth Flor | Chicago, lino 60608 | Phone: 312.447.2010 | Fax: 312.444.1125 wnwichis.com | clohnson@chle.con‘Section 3 ~ Strategic Review Process | DRAFT February 2016 ee JOHNSON ‘Amorla’s Canter Converion Complex Statage and Business Pan~ St Louis, Missour Aaa , CONSULTING Figure 3-1 $20.0 si72 “$18: S150 st00 $50 soo ($5.0) |-—, 47) "Operating Revenue — Operating Expenditures Operating Surplus (Defi) ($10.0) \ caGR Operating Revenue: 2.7% Operating Expenditures: 0.8% Operating Surplus (Deft: (6.1%) "CAG ~ Compounded Arras Growth Rally EYE 2007 tu FYE 2014. ‘Sure: America's Center Convertin Camel, titan Cansuting ‘As the chart shows, operating Revenue t€Reased frony'$12.6 milion in FYE 2007 to $152 million in FYE 2014, eeflecting a 2.7 percent annual growth. Meanwhile, operating expenditures increased from $17.2 million in FYE 2007161918 illion in FYBY2014, reflecting a 0.8 percent annual growth. As a result, operating deficit hag/decreased over the Yeas, froin $47 million in FYE 2007 to $3.0 million in FYE, 2014, reflecting a 6:1 pesééne annual reduction. Figure 3-2 sh@ws histosical operating revenue and expenditures of the St. Louis Convention and Visitors Commission (SLEVQ) Markefing Group from FYE 2007 through FYE 2014. {East Monroe Steet | Fith Floor | Chicago, tinals 60609 | Phone: 912.447.2010 | Fax: 912.444.1125 wawchie.com | siohnsonchie.comSeeger esp aa pe ats Ce JOHNSON a Center Convention Complex Strategic and Business Plan SI, Louls, Missouri y Ps, CONSULTING $180 Revenues Expenditures MExcees (Deficiency) of Revenues over Expendures $160 S140 S120 $100 $80 360 sto s20 900 ‘7 08 ‘0 40 1 42 43 4 aca Revenues: 1.8% Expenditures Excess (Defclency) of Revenues over Expensitures: 28% “Down through Excess (Deficiency) of Rlanues Ber Excendureslnaltem. Other Financing Soures are not shown on car “CAGR = Conpounded Annual Grsth Rate, fom FYE 2007 thas FYE 2044 _Soures:Amenea's Conter Comenion Coreiox, Johnton Consuiing [As the chart shows, SLCVC Markeling Group’s operating revenue increased from $14.7 million in FYE 2007 to $16.7 milli ia FYE)2014, reflectiiy « 1,8 percent annual growth. Meanwhile, operating expenditures increased ffom $11.4 million ia FYE, 2007%to $12.6 millon in FYE 2014, sefleeting a 1.5 percent annual prowthifAs a result, excess of se¥emues dver expenditures have increased over the years, from $3.4 million in FYE 20071 $4.1 million in FYE) 2014, reflecting a 2.8 percent annual growth, STAKEHOLDER ENGAGEMENT Developing « feasibiliifedy for a major civic asset like the America’s Center Convention Complex (ACCC) demands a highly collaborative process, requiring a significant time commitment and input from a vatiety of constituent groups. Allowing each stakeholder to discuss and define its needs, anticipate market demand and growth, and come to @ consensus is the only way to ensure the study achieves a balance of interests for all parties. Over the course of two months, meetings were conducted with many individuals representing the City, the business sector, industry leaders and professional organizations. Surveys were conducted to cast a wider net 6 East Monroe Steet | Fith Floor | Chicago tnois 6050S | Phone: 312.447 2010 | Fax: 812.444.1125, woru.che.com | ejonneon@ehie.comSection 3 ~ Strategic Review Process | DRAFT February 2016 *", ‘ae JOHNSON *, “Amerea’s Center Convemton Complex Svategle and Business Plan ~St Louis, Missou PAGE 9 CONSULTING of input for the information needed to understand the market and economic drivers that influence the need for future growth, ‘The findings and recommendations in this report reflect the ideas, insights, feedback and direction of a diverse cross section of St. Louis and the convention industry. Johnson Consulting and Gensler’s approach to development of the ACCC Reinvestment Plan promoted a spit of inclusion through Client meetings, Advisory Group work sessions and on-site stakeholder meetings, EsvabLishna Key oBuecrves Dn The St, Louis Convention and Visitors Commission began its planning peoéess with Johnson Consulting, St. Louis Citf Streets Department + St Louis City Board of Aldermen (Ward 7) * St. Louis Regional Chamber 6 East Monroe Steet | Fith Fleor | Chicago, nats 60803 | Phone: 912.447 2010 | Fax: 912.044.1125 _wunu.chic.com | ciohnson@chie.com‘Section 3 — Strategic Review Process | DRAFT February 2016 78", ae JOHNSON pie = St Louis, Missouri yp Ys, CONSULTING During the session, the industry leaders and customers shared theif Rnowledge of induttry trends related to Show Demands, Facilities and Space Needs; Show Types; Attendee, Demographics; Hatertiinment and ‘Technology. Given the convention industry attendees” firsthiand experiedite. with conventign center facilites nationwide, their observations and recommendations were exte8inely important to meeting ACC's objective of enhancing its competiveness and increasing its market share oF &ihibitions, trade shows and other events Key discussion points included: * How will the (then hypothetical) deparcure Bthe NEL Rats team impact physically economically the America’s Center Convettion’ Comptes + Willits current customé®l6ilijrow the Amerita’s Center Convention Complex? = Should ACC afid th City of St_Louis consider dequisition of adjacent properties to support needed growth? + How Gif ACCC Hiprove the eBinplex’s functionality, internal circulation and service/loading docks? 0t | Chicago, lincis 60803 | Phone: 312.447.2010 | Fax: 312.444.1125, wwe chie-com | cjohnsonéeniccom 6 East Monroe Street |Secon Stata Raven Pees | ONAFFednay 216 age JOHNSON gos seniors ‘Wg, JOHNSON PAGE 21 Figure 3-3 Civie and business leadets shated theis insights of ongoing and)plasined development initiatives that could impact future expansion, Following a walking tour of the ACCC facilities and surrounding neighborhood, the soup shared their observations and made réeiimendations for fura@)expansion and/or upgrades to the complex and for continued development and improvemedts,to the surrounding neighborhood. CONCLUSION ‘The analysis in this section of sk€ kepokt provides a vcky clear indication of current operations by event types. Johnson Consulting has arfalyzed in detail the contribution made by each event type held. This granular analysis permitted the té&m to)focus in om.events that cfeate maximum contribution to the operation and to the community. It is why retentigh@t part OF all[S6the Dome is recommended, although better integration into the complexsigiineeded, a Targesballsoom is essential, and more exhibit space is needed. ‘These observations ere also clearipidentitied iAlboth the meeting planner interviews and in the stakeholder session ~ conducted ) 6 East Monroe Strat | Fh Foor | Chicago, Minols 60608 | Phone: 312.447.2010 | Fax: 912.444.1125 wonw.chie.com | eichnson@chio.com% 206 JOHNSON >, CONSULTING SECTION V DEVELOPMENT STRATEGY ‘Demand, Financial, and Impact Implications ‘6 East Monras Stree | Ft Flor | Chicago, linois 60608 | Phone: 312.447.2010 | Faxc a12.444.1125 ‘smwi.chic.com | ¢lohnson@ehje,comSection §— Development Strategy | DRAFT Februay 2016 ei ae JOHNSON ‘America’s Center Convention Complex Strategic and Business Pian ~ St Loui, Miscou PAGE 48 , CONSULTING FOCUS OF DEVELOPMENT STRATEGY This study is intended to determine the entire range of improvements that are needed to enhance Ametica’ Center, All recommendations are considered to be essential for the long-term viability of the complex and to ‘generate the greatest return on investment for the community. There will not be Rams games in this facility in the forure, Therefore, a strategy was developed focusing on the existing facility and the connections between it and che surrounding hotels and entertainment venues that are in the core of dowatbwn, and how to attract ‘a greater volume of convention business into the area DEMAND IMPLICATIONS ‘This subsection summarizes the implications of the expansion gijewent demand, ttendance, operating revenue and expenses, a3 well as the overall impact to St. Luis. The analysis focuse@on she demand, attendance, and financial projections upon total build-out expansion. IMPLICATIONS ON EVENT DEMAND ‘Table 5-1 compates event demand as-is (per four-year average FO, 2011 thr 2014 statistics) with the projected event demand upon tora build-out expaision. Table s-1 Exhibit Events ‘Conventions and Trade Shows 28 10 38 Consumer Shows i 2 9 : ER SS] LEAT )))Non-Exhibit Events \Meotings and Seminars 39 9 48 Banquets 20 43 63 Concerts and Entertainment® 3 4 if Sports Events - Rams Games 10 (10) ° Sports and Tourism Events* 12 ©) 6 “Upon expansion, they represent smaller spactafor events that can ft half @ Dome. ‘Source: America's Center Convention Complex, SLCVC, Johnson Cansuiting 6 East Menioe Street | Fith Flor | Chicago, lines 60603 | Phone: 812.447.2010 | Fax: 212.44,1125 wanw.chle.com | clohngon@enje.comJOHNSON CONSULTING Section 5 ~ Development Strategy | DRAFT February 2016 ‘America's Centar Convention Complex Strstogic and Businoss Plan - St. Loul, Missour PAGE 49 Upon expansion, Rams games are removed, and half of the other sports events are also assumed to leave the ACCC. On the Convention Center side, the new ballroom and significantly expanded exhibit space allow the ACCC to accommodate a higher number of exhibit events, As shown on the table, the proposed expansion is projected to add ten conventions and trade shows, two consumer shows, and 41 non-exhibit events (net of Rams games). This results in a total of 52 incremental events. Total number of events is projected to increase from 119 events pre-exparition to 171 events, post- expansion, fi~ ‘The volume of banquets is projected to increase significantly. With the existing 2%625-square foot ballroom, the ACCC had 20 non-convention related banquet events. Upon expansion, ACCEs banquet space more than tzples from 27,625 to over 87,000 square feet. The new 60,000 Sqiare foot cons lot more vitiws sed events, many of which ean happen €oncurrendy as wel, eg, thbeSmslaneous 20,000-square foot events are counted as three events, Tiking into accbtint the vatiety gf size of banquet events possible, it is reasonable to estimate that the new 60,000 Square“foot Ballroom could generate 43 new banquet events. ‘ Concerts, entertainment events, and sports eve@itaarpely accommodted® the Dome, ie, 19 out of 25 such events today, including ten Rams games. The projec@diseven concerts and entertainment events upon reconfiguration of the dome would be smaller socket events than fit in the performance and meeting areas of the Dome, Half ofthe nonsRams sports evéps, ike voleYball tournament, are expected to remain in the ACCC. g » i. IMPLICATIONS ON EVENT-DA\ Table 5-2 compares event-days a0 Ger fours =yeaPerage from 2011 thru 2014 statistics) withthe projected ae i a 8 East Monroe Street | Fith Floor | Chicago, linols 60603 | Phone: 312.447.2010 | Fax: 312.484,1125 ww.chic.com | clohnson@chie.comSeaton 5 ~ evelopment Sratagy | DRAFT February 2018 JOHNSON CONSULTING ‘America’s Center Convention Complex Stratogic and Business Plan ~ St Lous, Misscurt ? PAGE 50 Table 52 Oe eee kes Dee ersten coe 7 ; 5 bined | Exhibit Events ‘Conventions and Trade Shows to1 36 137 Gonsumer Shows 23 7 30 ea 2 SA TET OT | ‘Non-Exhibit Events Meetings and Seminars 84 19 103 Banquets 23 49 2 Concerts and Entertainment 3 4 7 Sports Events - Rams Games 10 (10) 0 Sports and Tourism Events” 24 (12) 12 “Upon expansion, they epresent smaller spectator events that can ft haifa Dame. ‘Source: America's Center Convention Complex, SLCVC, Johnson Consulting ‘The absence of Rams games allows the ACCC to actmmodate a higher aumber of exhibit events. As shown ‘on the table, completion is projéted Badd 43 exhibittevent event-days, and 50 non-cxhibit event event-days, touaing to 93 incremental e¥en-days. Total number of eventdays is projected to increase from 268 event days pte-expansion to 361 evéat-daj\post-expansion. ‘The projected event-days conservatively assume that on average, events that happen upon expansion will last for the samejength as the @kisting onés)s shown on Table 5-3. The existing average event-days are entirely based onistorical data as provited by SLEVC. 6 East Monroe Strest | Fith Flor | Chcage, tinois 60803 | Phone: 312.447.2010 | Fax: 912.444.1125 snnushiezom | clonnson@chie.conSection 5 ~ Development Sirstogy | DRAFT February 2016 ‘America's Center Convention Complex Strategic and Business Plan ~ St. Lous, Missourl We JOHNSON CONSULTING 22 42 1.0 09 PAGE 51 Table 53 eter mereka ee ee Nay Bree nar Exhibit Events Conventions and Trade Shows 101 28 36 Consumer Shows, 23 7 33 Non-Exhibit Events Meetings and Seminars 84 69 22 Banqueis 23 20 12 Concerts and Entertainment” 3 3 4.0 Sports Events - Rams Games 10 10 10 Sports and Tourism Events 24 12 20 “Upon expansion ey represent smailef=pectator events that can fit half Dome. ‘Source: America’s Center Convention Complax.Derrtment, Jonnson Consuing ATTENDANCE Table 5-4 compares attendance assis (per four-year average from 2011 thru 2014 statistics) with the projected attendance upon expansion, 6 East Monroo Stost | Fit Poor | Chicago, Hinois 60600 | Phone: 212.447 2010 | Fax: 912.444 1125 voww.chie.com | eiohnson@chie.comFee Sec of Development Strstegy | DRAFT Februery 2016 ‘America’s Canter Convention Complex Strategic and Business Pran = s, Missoun ree * CONSULTING PAGE s2 Table 5-4 Center Convention Complex erence Exhibit Events Conventions and Trade Shows 180,513 64489 244,982 Consumer Shows 112,282 32,081 444363 Non Exhibit Events Meetings and Seminars 53,489 12,343 65,832 Banquets 16518 37.588 53,104 Concerts and Entertainment® 120,087 14410 194,497 Sports Events - Rams Games 429,128 (429,128) 0 Sports and Tourism Events* 129,783 (97,999) 31,784 = ERETRS OEE] See aT ae TT Notale e | g.o40.g00) 56,238) 674,562. “thon expansion, hey represent smaller spectator events that can fit half a Dome, ‘Source: America’s Center Corwenton Complex, SLCVO, Johnson Consuiting As shown on the table, completion of the expansiod is projected to add over 64,000 convention and trade show attendees, 32,000 consumer show attendees, anid 64,000 mecting, seminar banquet and sinall concert attendees, while losing approximately 527,100 Rams andlother sports event attendees, totaling to a net loss of 366,000 attendees. Total attendance is projected to decrease from approximately 1.04 million attendees pre- expansion to nearly 675,000 attendees post-expansion. The projected attendance conservatively Resumes that on average, events that happen upon expansion will be the same'size as the existing ones, attendance-wise, with only one exception. Banquets are likely to slightly inccease in size, resulting fom the presence of the new 60,000 square foot ballroom. Table 5-5 shows the assumed average attendance for each type of events. The existing average attendance is entirely based on histotical data as provided by SLCVC. 8 | Phone: 312.447.2010 | Fax: 312.46 www chic com | elobnsondiehie com 6 East Monroe Sireat | Fith Floor | ChiSesion 5 ~ Development Stategy | DRAFT Febrany 2018 ‘Amrica’s Corto Convention Complex Stratogle and Business Plan ~ St. Lou's, Missour PAGE 52 Table 55 eer edna ula! Eee ice Ane cy Exhibit Events Conventions and Trade Shows 120513 Consumer Shows 112,282 Non-Exhibit Events Meetings and Seminars 53,489 Banquets 15518 Concerts and Entertainment® 120,087 ‘Sports Events - Rams Games 429,128 Sports and Tourism Events* 129,783 “upon expansion, they represent smallorspettalor events that can fit haifa Dore. 39 20 3 10, 12 ¥ JOHNSON CONSULTING 6.447) 6447 16,040 16,040 1,972 9872 776 849 40,029 19.214 42,913 na 10,815 5297 ‘Source: America's Center Convention Cormolox Deparment, Johnson Consuiing IMPLICATIONS ON OPERATING REVENUE AND EXPENDITURES: ‘Table 5-6 compares operating revenue and expendityres as-is (pér four-year average from FYE 2011 thtu FYE 2014 statistics) with th€ projected) operating revénue and expenditures upon expansion in uainflated dollars (i.., not adjusted: for inflation). The projections a¥€ based upon comparison of event activity volume (measured in number of events)evesttdajajand, anerdees) before and after the expansion, as well as the expected changes in rates and operating cost structutes. 6 East Monroe Steot | Fith Foor | Chicago, ines 60608 | Phone: 312.447 2010 | Fax: 912.446.1105 werw.chle.com | elohnzon@ehle.comssc Corpor ry AF eb 8 ‘gE JOHNSON ae ‘Center Convention Complex Strategic and Business Plan ~ St. Louis, wi *, CONSULTING Table 5.6 eieeed cnn ccna Boa Out ura eet nM ce) Exhibit Halls "502,000 173,000 675,000, Ballrooms 27,625 60,000 87,625 217% faa Rooms 119.043 26,000 145,043 20% aCe Medi ‘Operating Revenue Building Rental 84,126 se / 55% Net Food and Beverage 3847 5825 51%. Event Reimbursements 41459 393 (73%) Box Office Revenuos 1199 1025 (14%) ‘All Othor Revenue Categories 3,429 4309 26% | otal Operating Revenue 7)! S059) ‘Operating Expenditures Porsennel $7,096 $1,078 $714 24% Vilties 621 09 3530 35% Cleaning Services! Building Services 2.202 765 2967 35% Property & Liebilty Insurance ‘le38, (684) 4348 (30%) All Othor TT 3.452 683 4.145 20% en er) i oo (2014 dolars) “Moasures'the dtfeence betwaen 2011-2014 Average and he stabilzed year ypon expansion, ‘eilactod in 2014 collar. ‘Sobree: Amorca's Center Bonventon Carpblex. SLOVC, Jonson Consuting shown ofthe table, completion of the expansion is projected to increase operating revenue from $14.1 _sillion pre-expasion $18 pilin postexpansion, OpEHIENG cipendituces are projected to increase omy $17.2 million pre-expansiowto $20.7 million post expansion, Av a Tesult, open EHC projected to decrease from $3.2 milion pre-expansion to $2.7 millon post-expansion. Table 5-7 summarizes the underlying assumptions for the operating revenue projections, derived from pre expansion statistics and shows the assumed increase (or decrease), if any, of revenue changes, post expansion. 6 East Monroe Street | Fith Foor | Chicago, Minos 60608 | Phone: 912.467 2010 | Fax: 12.444,1125 sminu.chie.com | ciohnson@chic.comSection 5 ~ Development Strategy | DRAFT Fobruary 2016 S'ME JOHNSON pve acon Cog Sh one y F's, CONSULTING Table 5-7 ro ers eee Oprng Revenue Soong te sto an sonia fue Stamm promcny i et eel q SE es an Oe ee ee exons rene Eee sat an Se OS pabecranins tl Spann vom smasngany RR Ts cca aan a aan ee} = ( . eee ee fo parts my Snot ee see ee Se ae ete sso, } = ean ieotnn fteajoe sian anaes som sur pecstncin = ‘ise Stem Gece Se Se A mae or a Se a sean es ia eae man ee eee roms Sates ars pe ce aoe Stl han ht vets Se 1 —— Secert enre eae . = ae ect tina oeismacsaas (ea \ _Sarce: Amare Cer Corton Compe SLOYE, omen Comutng ‘Table 5-8 summarizes the undedlying assumptions f¢ the operating expense projections, detived from pre- expansion statistics and shoviig the assimed increase (or decrease), if any, of expense bases, post expansion. Table 5-8 vention Complox eres ‘operating Exponditutes, Personne Srassgse 648.668 SFcttuncionspace $1085, $080 (115% pers ttuncton oer tees . Pood 258 ovortays en sara “bow Clearing Savio! Busing SeRices 220607 258 crortcays S827 Sao bon Property Labi Insuanes igss0se 1040200 stencees S138 ‘8200 75% —_peratendee pe ec ee mia waists oe Meee fetta. Seu: Arar Cet Caan Cate SLGVG Jtmsn Comang In summary, building rental per event-day and food and beverage revenue per attendee is expected to increase by 15 percent to seflect higher quality and increased demand interest. The remainders of the revenue and expense bases are expected to change slightly or stay largely at the same level ‘6 East Monroe Street | Fith Floor | Chicago, linis 60808 | Phone: 212.447.2010 | Fax: 812.448.1125, \ww.chie.com | glohnson@ehie.comSection §Devslopment Stag | DRAFT trum 206 ‘America's Center Convention Complex Strategic and Business Plan ~ St. Louis, Missour PAGE 56 ANNUAL IMPACT ‘This subsection measures and compares the estimated economic and fiscal impact a54 ee JOHNSON *, CONSULTING (er four-year average from 2011 thru 2014 statistics) with the projected impact upon expansion. The impact estimates are based on. the findings from the analysis of representative events as shown in Table 5-9 (previously showa in Section 4 as wel), applied to the event activity volume (measured in number of events, event-days, and attendees) for each type of events, Table 5-9 1 Event Length Days) 2 endanca 4 Est RoomNight Demand Event income Summary 4 Total income 5 Event Expanses 1 Nat Event Operating Income (Lose) ‘Event impact Summary 7 Direct Spending 8 “otal Sponding 29 Personal Inoue 10 obs Supported (FTES) 11 Local Taxes 12499 10283 129305 $162,902 $206 489 ,s00,s62 s18081-262 '$4557/668, ‘34 ‘985,065 gree on Une 1 excuse moved me ya ges on Lie 1 va tine 1 conespond xa ansapes BE He Fe oxampe ct, esecve peso events revi shown Secon & {excep toon te est clue representa oer yes of errs, Wen are ste, hazed on mate Mat tac) ‘Statist sown fr Sports a Toma Evens erld eco of Pare gre ‘Source: Arenas Goer Conventan Campin... Cnvenion ana Visors Commision Jshnson Contin s1'saars $2.36}.043 $818,359 30, 2.075 2581 60,741 540471 311270 1.45904 $2,685,069, 3877528 150,798 10 55,000, ‘at serzssr '3155.287 $524,501 $1,257,208 52,163:501 690 254 2 3102483, 2a 10 8367 2800 554 280 soar18 $7,909 seees5 $2,002 sioost $5,007 seseisot —s102200 4522665 Si80018 3153268 $57.89 7 18 sereaet $10,288 Table9 above shows the estinated pér-event impact of each type of event, based on the average of the sepresentative sampled events (not the largest event from each type, s0 as to be reasonable to conservative, even though the’ building is expanding). Definitions of key impact measures arc listed in Table 5-10, 6 East Monroe Street | Fith Flor | Chicago, linois 60803 | Phone: 912.447.2010 | Fax: 912.444.1105 muw.chie.com | elohneon@ehle.comSection 5 — Development Strategy | DRAFT February 2016, ‘ae JOHNSON Amatia’s Centar Convention Complex Strategic and Business Plan ~St Louis, Missour PAGE ST CONSULTING Table 5-10 Direct Spending ‘Total Spending Personal Income ‘Jobs Supported (FTEs) Local Taxes This isthe sum of visitor, meeting planner, and exhibitor spending. This is the figure most often cited as the “impact” of an event. ‘This includes indirect (businoss-to-businoss supply chain purchases) and induced (incomes spent in the local economy) business sales. This is a more ‘complete view of the impact of an event as dollars flow through the local ‘economy, “This includes all forms of income accruing to houséhalds ae a result of the ‘event, both through direct and indirect business activity, Including: = wages and salaries, = other labor income, ©. plans, private pensions, + propritor's income, e.g, income tom sole-proprietors/ partnerships « transfer payments, ie., retirement payments, disability, miltary pensions. contributions byemployers to unemployment, health ‘This includes the employment suppéited by/ll event-related business sales. It Includes indirect (business-to-business supply chain purchases) and induced (incomes spent in the local economy) business sales. This is a more complete: ‘view of the impactof an event as dollars flow through the local economy. ‘This is the sum of direct ifitect, and induced logal taxes and assessments generated by an event, incudingincome, bed,sales, and other local taxes. ‘Source: Destination Marketing Association Intemational Today, America’s Center fiOsts 28 conventions and trate shows, seven consumer shows, 39 meetings and seminars, 20 banqucts\“three Eoncetts @hdacntertainment events, and 12 sports events (excluding Rams games), om average, annvally. Multiplying the nufAbér of events cach type with the respecti average impact ‘will result in theseSHimfated overall anmal economic and fiscal impact as shown in Table 5-11, ‘8 East Monroe Street | Fith Floor | Chicego, linois 60608 | Phone: 312.447.2010 | Fax: 312.448.1125 www ehle.com | slohnson@enie.comSection 5~ Development Satay | DRAFT Feb 2018 aa JOHNSON ‘Amerea’s Cantar Convention Complox Stratosie and Business Plan ~ St. Lou, Missour PAGE 53 , CONSULTING Table 5-11 eect cn Estimated Curr I PR anne) 1 Hof Events aa 7 39 3 2 20 109 10 119 2 Bot EventDays 101 23 ot 3 24 23 258, 10 28 3 Attendance je0513 112282 © 59,480 1a0087 129,7a3 | WABBIB 611.672 420,128 1,040,000 $ Est, RoomNight Demand 204014 1.975 «34073 ,781 1308.90). 351.660 0 351,880 Event impact Summary (Suiion)* { 5 Direct Spending 180 sit $03 st Seg se se so $258 6 Total Spending S28 si8 $69 Bo 88 so S463 9 SH6a 7 Personal come 5105 nr) sof 513, si St6m 9 IST 8 Jobs Supported (FTEs) 220 100580 5200) 20340) 3 3.3e0 9 Local Taxes, ‘sat st 4 30 $3 so $80 mo 880 ‘Stet shown oi te are store yar averages 0 roid by SL.CVC, c ‘State sown for Soi and Toursm Eres (on ine tn 9) eckte ose OF Ras games, hich adraped 10 evr, 1 even ay, and 420,128 atendoc. ‘reer, meat estates shown fr Sports and Ter Evens Line 40) exclu any fom Fas oames 2 Wl, “impact fre re shown nue 2044 dar ae shown PUNeeF te aot on, ‘Source: Ames Carter Convertor Compl, St Lexis onanton and Visors Cason brs Cons As shown on the table, annual impact of the exittiag, America’s Center operations is already significant. Combined, event activities at theATGGC are estimated)to have geferated 351,660 room nights (which include both contracted rooms andithose outside the block), $258 million of ditect spending, $463 million of total spending, 3,340 fall-time’equivalent jobs, and $30 million fh local tax revenues, annually ‘Table 5-12 shows the estimated annual impact of the America’s Center, post-expansion 6 East Monroe Street | Fith Floor | Chicago, lincis 60608 | Phono: 312.447.2010 | Faxc 912.444.1125 unw.chlc.com | ciohnsonchie.comSpotion 5 ~ Development Strategy | DRAFT February 2016 ‘America's Contor Convention Complex Siretogic and Business Plan ~ St. Loui, Misscurh PAGE 59 Cent is Table 5-12 206 JOHNSON ; CONSULTING Impact (based on Stabilized Year of Total Build-Out) 1 of Events 38 2 of Event Days 137 4 Allendance 244.982 4 Est. RoomNight Demand 470.420 Event Impact Summary (Stlilion)” 5 Direct Spancing 6 Total Spending sao 7 Personal income Stas 2 Jobs Suppotted (FTEs) 310 8 Local Taxes ‘329 ots 314 $23 s7 190 St ‘815 120 st 6 6 m 2 nm 361 31.74 53100 674,562 27.460, 257 557,340 ‘$8 $8 $355 4 $10 sor 20 8 s208 4830 80 4500 84 st 301 Figures show on Line 1th 8corespona tote avant, oventaay, and allendorce projections on abi6 2, Tabl 2 and Tate 5. Estates or Spt and Tors Events assume that Fams cance wil longer boa the Amaral Caner Conantion Camp. “imoact gues ao shown in unilated 2014 cars sods are shown fname of tile aqialet ene, Sowee: Amarcas Centr Corventon Comoe, St. Lous Carvanton and Vays Canision, Jetson Ceuting As shown on the table, annual impact of the expanded Ameriei?s Center is significantly greater. Among other factors, expansion completion is projected to incréise room-night demand to over 557,000 room nights. Direct spending is projected rosiiéf¥ise to $355 million post-expansion, ‘The expansion is also expected to support 4,590 FTE jobs post expansion.) SS ‘Table 5-13 shows the incrementalianstual impaetyshowing the difference between pre- and postexpansion, a 6 East Morvos Street | Fit Floor | Chicago, linois 60803 | Phone: 312.447.2010 | Fax: 912.444.1125 wyu.chie.com | elohnson@chle.comSection 5 — Development Strategy | ORAFT February 2016 ‘America’s Center Convention Complex Strategie and Business Plan ~ St Louis, Missoun PAGE 60 Table 5-13. eee ere Eerie canner! JOHNSON *, CONSULTING s 4 # of Events 10 2 fof Event Daye: % 9 Attendance e469 4 Est. Room-Night Demand 176,406 5 % Increase Over Curent 60% Event impact Summary (Stilion)* 6 Dict Spending 7 Total Spending sne 4 Personal Income ‘$38 0 Jobs Supported (FTES) 20 10 Local Taxes. 8s 2 9 4 7 19 4 82,081 19343 14410 1,025 17037 1019 52% 50% 58% $3 so 35 s 818 83 se $5 83 50 130 20 0 st 30 Furs in tis table show ba ofererce hatwoan those shown n Table 12 and Table 543 Incremental inact of Sports and Touran Evers donot ke to account any impacts oad fo Rams pai. “impact foures ao shown in ninfted 2014 colars Jobs ar shown nner Of fukfineeaialent ones, ‘Source: Amerc's Cntr Carwerton Compe, St. Louie Conant and Vators Cnmissen,Jctrsen Corspking © 43 a (12) 20 108 (97.998) 97,588 62890 9.154 1.080 205680, ‘50% ‘60% sia 4 sor st 7 sim 3 se ‘356 140 60 1250 st 30 sit ‘As shown on the table, the proposed expansion is estimated to inetease, among others, room night demand, direct spending and employment in allWategories, exceptt sporting events, Table 5-14 summarizes aid eOtpares the annual impact; pre-expansion, post-expansion, and the difference. {6 Easi Monroe Street | Fit Floor | Chicago, tnols 60503 | Phone: 312.447.2010 | Fax: 912.448.1125 anw.chle.com | siohnson@chie.comJOHNSON , CONSULTING Section 5~ Development Strategy | DRAFT February 2016 ‘America's Center Convention Complex Strategic and Business Plan ~St. Loui, Miscour PAGE 61 Table 6-14 een en cikad Estimated Economic and Fiscal Impact (Uninflated Dollars) Visitation Volume 5 i of Events 109 62 "1 87% 6 Hof Event Days 258 108 361 40% 7 iendance 611,072 62890 674,562 10% 8 Est. Room-Night Demand 351,660 205,680 557,340 58% Event impact Summary ($Milion) 8 Direct Spending $258 so7 $355 38% 10 Total Spending 8483 174 $637 38% 11 Personal Income 8151 $56 $208 37% 12 Jobs Supported (FTEs) 3,340 4,250 4590 37% 13 Local Taxes $30 sit sat 37% "Statics and impact estimates shown for the existing events exclude those of Rams games, which averaged 10 events, 10 evert.days, and 429,128 attendees annually rom 2011 through 2014. “Measures the dtfarence between 201-2014 Average and the stabilized year ypon expansion, ‘reflected n unirflated 2014 doliars. ‘Source: America's Center Convention Complex, St. Louis Convention and Visitors Commission, Johnson Consult ‘In summary, the increased activities in Bonventions, tae shows, consumer shows, and other types of events are expected to result in ileregsed attendance, the majosty’of which are by overnight convention attendees, thus increasing the number oF «8m aighWlis well as ovérall economic and fiscal impact substantially. ‘Tfexpansion does i6t@Geur, current alhual impacts will begin to decline due to improvements in competitive buildings in’6ther destinationg)Figure 5-1 ilbStrates the estimated erosion of convention business as reflected in declising numbers of room nips. {East Monrae Seat | Flth Floor | Chicago, linols 60608 | Phone: 812.447.2010 | Fax: 312.448.1125 ‘voww.chic.com | clohnson@chic.comee SAE JOHNSON P's, ote CONSULTING —— Figure 5-1 ra he ea Cues Dee on eu en ols) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 ° FYE2016 2017 2018 2019 BHD», 2021 2022 2023 auzd oes | ‘Source: America's Center Convantion Complex, St. Loulé Cofvention and Viitéke Commission, Johan Consulting Figure 5-2 compares soomyfight tes when expatkion is made vs. not made, illustrating a widening difference between the tyes. {6 East Monroe Street | Fith Flor | Chicago, tints 60603 | Phone: 312.447-2010 | Fax: 912.444.1125 wor chie.com | ciohnson@ehie.com‘Section 5 ~ Development Strategy | DRAFT February 2016 JOHNSON CONSULTING Figure 5-2 eas ‘America's Center Convention Coptex Strategie and Business| PAGE 53 St. Louis, Miscour 00,000 No Expansion ‘Svvih Expansion 394,570 400900 sea 500,000 ] 300,000 200,000 400,000 o4 7 FYE 2016 2017 2018 ©2019 Bozo. 2021 20987 2023 2024 ©2025, ‘Source: America's Center Convention Complex, Si. Lou Cafventon and USS Commision, Johnson Consuting ‘As shown on the chart, the difference room night dds berween expanding the ACCC and doing no: is significant: over 92,009;f00m nights in near future to a¥ef 284,000 room nights in ten years from now. ONE-TIME CONSTRUCTION IMPACT [aca later dace) KEY GONCLUSIONS FROM ANALYSIS Extensive eRpansions, district upgrades around convention centers and aesthetic upgrades are occusting in ‘vistually all competitor buildings. These upgrades and expansions range from adding ballroom and meeting space, to complete Redevelopfiient of convention centers. Costs of improvements are expensive, Seattle will invest $1 billion, while many other improvements are ‘upwards of $500 million, St. Louis’ biggest deficiencies, according to past, current and prospective users are a nced for a major ballzoom (minimum 60,000 square fect), more exhibit space, more loading docks, and better interface with the Stadium. 6 East Monroe Street | Fith Foor | Chicago, lino 60603 | Phone: 312.447 2010 | Fax: 312.444.1125 eww.chic.com | clohnson@chie.comSection 5 - Focus of Development Stategy | DRAFT February 2018 ey JOHNSON — *, CONSULTING Americas Center has declined slightly in evemts and attendance, and core clients will leave to atemative ‘markers that ate upgrading to accommodate them, iemts like St, Louis, It is a good city for many events and they enjoy the fact that they are a dominant presence in the City, ‘The facility was originally built in 1977 with the Dome addition in 1995; the entirécomplex is aging and in need of substantial capital improvements in the years ahead, If the facility is nof upgraded and expanded, business will decline. If improvements are made, itis projected that 2 minimum 37 percent increase in impacts will occur, and the expansion will position this sector of the déwangimn area to re-energize ancl redevelop. Ww 2 Americas Center currently hosts 28 major conventions and taée show annually. Ifthe eSéentil expansion and upgrades are addressed, an estimated ten new convefitions and thide shows will come to St, Louis. Combined, the projected 38 convention and tade show“event@are estifhated to host a total of over 245,000 multi-day attendees. 4 Room nights wil increase from an estimated 350.000 today to over 557,000 yp6n stabilization Retention of par oral of the Dome will be a unijue advantagbfor St, dus, bue part of it can be repurposed to exhibit space. This allows for general sessions, religious and mullevel marketing events to have a specially designed component of the buildif@vailable fortheinevents. * America’s Center is a huge draw for the downtown area/nd a significant number of ACOC anendees stay ‘multiple days in the market. Furthessiore,ilattendarie and room night usage has impacts far greater than just downtown area,as room night demand from large groups spills to outside of downtown and fills up ower hotelsa6 well "The SLCVC has Commissioned a compression study separate from this report. The departure Of the Rams will make, scheduling events easier, and still has plenty of entertainment events possible for itsReduced size. While attendance iferease in exhibit hall events, meetings, seminars, banquets, and small concerts is sill insufficient to make up lost attendance from Rams games and the other Dome events, the expected increase, in activity yolume, size, and length of those conventions and other types of events is expected to result ih increded visitation by unique individuals, the majority of which are by overnight attendees. Therefore, the overall effects include greater room nights, greater direct spending, and greater tax revenues ~ in summafy, greater positive impact than the loss of Rams attendees. ‘The types of improvements being added are the most profitable aspects of the venue. At $3.2 millon, the current operating deficit is very low compared to many of its peer buildings. Upon expansion, some of the ‘ypically profitable events currently taking place at the Dome will move out from the America’s Center, However, the increased activites at the expanded exhibit halls and new ballrooms have the potential 10 6 €ast Monroe Steet | Fih Floor | Chicago linis 60603 | Phone: 212.447.2010 | Fax: 312.444.1125 vomu.chie.com | elohneongiehie.comSection PAGES DavelopmentStateay | DRAFT February 2016 pera lea "Se Jonson ®, CONSULTING reduce the loss. With a new 60,000 squate foot ballroom and more exhibit space, the annual operating subsidy should stabilize at between $3.4 million to $4 mnillion anally. Currently, over 3,340 jobs are supported by Americas Center annually. This will increase to over 4,500 annually. Job suppoct wll decline if physical improvements are not made. ‘Table 5-15 summarizes the overall economic and fiseal impact, from one-time tonstruction activity and. annual incremental event activities, Table 5-15 eon cass Serre) Direct Spending $97 Total Spending $174 Personal Income $58 ‘Jobs Supported (FTEs) 4,250 Local Taxes sit Source: Jahason Consuting {6 East Monroe Stat | Fith Flor | Chicago, linois 60608 | Phone: 312.447.2010 | Fax 312.444.1125 wunw.chlc.com | clohnson@enie.com% JOHNSON > CONSULTING SECTION VI NEXT STEPS ‘6 East Monroe Street | Fifth Ficor | Chicago, ilinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125. vawu.chie.com | elohnsonGchi.comJOHNSON CONSULTING Section 6 ~ Nex! Stops | DRAFT February 2016 America's Contor Convention Complex Strategic and Business Plan ~ St. Louis, Missourt PAGE 66 NEXT STEPS ‘The next steps to implementing the recommended improvements relate to the SLCVC using the body of work developed to date in this report and management as a tool to justify broader community buy in to the improvement plan. The most important thing to remember about the Rams leaving is dha it will present an ‘opportunity to make the venue mote competitive as other buildings position themselves nationally NEXT STEPS. CIVIC BUY IN TO THE PROCESS AND FINDINGS. . Jt must be communicated that this competitive business is expandisif, and SBLouis’ competitors are expanding and upgrading, If Americas Center does not respond acgdtingly, the City aos stanure, existing businesses, and its historical competitive edge. » DETAILED PLANNING / ‘After expansion, the next weak link to be addressed is the sesthetitynd content of the area surrounding the convention center, Finally, demographic shifts nationally are cointiding with good planning efforts as, rillenaials and active adults seck urban envigiiments. The area axGindAmericas Center is sipe for development and needs it, \ y FUNDING STRATEGY " \ Room tax and the SLCVC’s#honeyllnd stewardship\is directly invested in outcomes it must drive. The sm will Be expensive, ahd €urrent resources may not be able to fond all improvements. Fundisg founds» Nashville ,éceated a Tousism Development Zone; Chicago implemented a small food and ee fec on dawAfown restaurants, If the community accepts the need for expansion and upgrade this expansion of City, Gunty and State support can be devised to fund the improvements. A few example inctode Bh wille created thee square mile Tourism Development Zone (I1DZ) whereby the bond igitions of the Musée Center are financed through an increment of property tax, ear rental tax, and al sales tg Tax collections have substantially exceeded pro forma expectations by more v2, ‘Austin and Seattle plan to finance their expansions with increased tax revenues generated from existing taxes made possible by improved convention business performance and growth in the economy. Indianapolis planners made similar forecasts for their 2011 expansion, and indeed found that improved revenue generation meets or exceeds their bond obligations. {6 East Monroe Street | Fith Floor | Chicago, tints 60603 | Phone: 312.447.2010 | Fax: 912.444.1125 mnw.chie.com | clohnson@ehle.com