Conference center projected to bring $7.4 million in spending to Boulder

BOULDER ? A convention or conference center in Boulder would generate about $7.4 million in new revenue for the community, according to phase one of a study initiated by the Boulder Chamber of Commerce.

Stan Zemler, president and executive director of the chamber, said the final draft of the market and economic analysis indicates the center should be between 50,000 and 100,000 square feet. “Of the total space, about 30,000 to 40,000 square feet would be prime exhibit area, and 15,000 to 25,000 square feet would be ballroom area,” he said.

The convention center would be used about 250 days a year for a variety of national and regional conventions, public shows, corporate meetings and university and other local events.

“It’s important to remember that the city would need about 600 convention-quality rooms to support the convention center,” Zemler said. While there are about that number in Boulder now, they are scattered around the city. “Conventioneers don’t want to stay at hotels all over town. They like to be close to the convention center,” he said. Zemler doubted that existing hotels would want to dedicate their rooms just to people attending a convention.

The University of Colorado’s contribution to the analysis was that it would use a convention center for about 20 to 30 events a year. Zemler said he thinks there would be more opportunities than that for CU events in a conference center, since the university holds between 200 and 300 events annually now.

“For example, CU is very interested in holding its new two-week, summer executive training in a new conference center. Many different kinds of activities other than conventions could be held in a new convention center,” he said.

The general operating costs of a convention center would be about $1.1 million annually while producing about $850,000 in revenue a year ? a shortfall of about $250,000 to $300,000 a year, according to the study. “This is very typical of convention centers,” Zemler said. “Few make money, much less break even.”

Estimated direct spending in the community from a convention center, however, would be about $7.4 million, according to Zemler. “Presumably, this would be new revenues for the community spent in retail, restaurants and hotels and motels.”

Tax revenues from that amount would be about $667,000 a year added to city coffers. “Not a significant amount,” Zemler said. “But we have to look at long-term sustainability. Creating opportunities to keep the whole economy healthy is how we have to look at it.”

Zemler said the next step will be to meet with the steering committee to determine if it wants the study continued. If the committee decides to continue the study, a site and financing analysis will begin.

Conventions, Sports & Leisure International (CSLI) would continue phase two and beyond of the convention center study with John Kaatz as the principal, Zemler said. Originally, the study was commissioned for $40,000, but about $4,000 more was added to the cost with CU joining the project and contributing additional input, he said.

While site analysis would be in the next phase, Zemler said Crossroads Mall is a prime location for a new convention center. “Anywhere else would be a challenge,” he said.

Crossroads is located between 28th and 30th streets, so it is easily accessible from U.S. 36 and close to CU, the Regal Harvest Hotel and transportation. The city is very interested in mixed-use redevelopment at Crossroads, according to Zemler, and he has kept Macerich Co., the owner of Crossroads, informed as the convention center study progressed.

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