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Thursday, October 08, 2009
Proposed Convention Complex Deserves Another Look
By Steve Wedeen
Principal, Vaughn Wedeen Kuhn
A recent Journal poll indicated that 74 percent of Albuquerque's voters oppose the much-talked-about event center and convention complex. That shouldn't be a surprise to anyone, including those who support the project. But for those who think the estimated $400 million project is unnecessary and frivolous, all I ask is for you to listen to the rest of the story before you finalize your opinion, and ultimately your vote.
The proposed convention hotel and event center complex is an economic development project, plain and simple. It is an investment in our city's economy that will deliver a significant return to all Albuquerqueans. Tourism is the second most lucrative industry in Albuquerque. It doesn't take much to see the tremendous economic infusion that the Balloon Fiesta brings to our businesses, and ultimately finds itself into the pockets of our citizens in the form of jobs and tax revenue.
Santa Fe depends on the revenue generated by their world-famous markets. And cities across America create events to attract out-of-state spending to bolster their economies. Tourism, whether leisure travel or business or organizational travel is crucial to New Mexico, and to Albuquerque. Tens of thousands of Albuquerqueans get their paychecks directly or indirectly from the revenue generated by out-of-state visitors that come here to attend an event.
What are not seen by most folks in Albuquerque are the events that take place in our convention center. Week in and week out, events that attract hundreds, even thousands, of out-of-state visitors who come to our city and spend three or four days in the convention center and the surrounding hotels, infusing cash into our economy, in hotels, restaurants, shops, galleries, services and public facilities. Hundreds of millions of dollars can be spent in a year by these outsiders, boosting our local economy and providing necessary stimulus that facilitates business growth and creates and sustains jobs. In addition to the economic impact of convention visitor spending, these folks leave behind a significant amount of money that finds its way into our tax coffers, through gross receipts tax and lodger's tax. That's money that helps build our roads, fund our parks, trails and cultural amenities and builds schools and police stations and firehouses.
But our convention industry is in a tailspin and falling fast because we cannot accommodate the really lucrative events that other cities are attracting. And I'm not just talking about Las Vegas, Nev., or Los Angeles or Phoenix. I'm talking about places like Oklahoma City and Indianapolis and Austin. These are all cities that have invested in similar projects to the one being proposed for Albuquerque. And they are reaping the rewards, while we are being methodically put out of business.
Without getting too complicated, consider this. Think about your professional, trade, charity or hobby organizations. They all have conventions, meetings, conferences and expos. If you're a doctor, where does the AMA meet? If you're a carpenter, where is your annual national union meeting? The answer, unfortunately is simple. Not here. But why? We have a beautiful city and state. Gorgeous weather. Lots to do. Santa Fe, one of the top five destinations in the country is only a train ride up the hill. And we are very cost effective, even more important to businesses and organizations than ever before. So why don't they come? The answer: We don't have enough hotel rooms within walking distance of the convention center and we don't have a venue for them to hold their large general sessions.
You see, this project isn't just about basketball or arena football, concerts or religious gatherings. It's not just about attracting the rodeo or a monster truck event. It's about our economy. It's about jobs. Thousands of them. It's about spending a dime to get a dollar back. The proposed $400 million probably will require about $15 million a year, with five, maybe 10 times that coming back into our economy. And now, with construction costs significantly lower, possible federal stimulus programs, not to mention contributions that may be made by the county, region or state, the cost could be much lower than originally estimated.
The project may require an increase in gross receipts tax as high as 1/8 cent. That's about one pizza a year per person. So all I am asking is to not shut the door on this. Maybe the 1,000 additional permanent jobs this project will create would change your mind. Maybe the additional 3,000 temporary jobs that this will create that will help our unemployed and even save on public assistance over the next few years. Maybe the real boost to our economy may have you reconsidering your position. Or maybe you remember that when the Civic Auditorium was torn down in 1989, the promise to build a new one wasn't kept, leaving Albuquerque the only city of its size without an event center.
Perhaps the economic argument is convincing but you believe that we do indeed need and deserve a place for concerts and sports and other family entertainment, easily accessible to all Albuquerqueans. In the coming months you'll hear more and more on this. Just listen and be open-minded. You might like what you hear.
Steve Wedeen is on the board of the nonprofit Downtown Action Team and a principal in Vaughn Wedeen Kuhn, a design and advertising firm.
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