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Currently, the ACC has only 160,000 SF of meeting and ballroom space to compliment its 813,000 SF of exhibit space. Unfortunately, more and more conventions and trade shows require at least 200,000 SF of meeting space. According to market research reports, date unavailability and inadequate space at the ACC accounted for a significant amount of lost events and potential revenue. As a result, Anaheim is losing convention/tradeshow business to its competitors, indicating there is a strong market demand for ACC to expand.
Additionally, the City would be able to take advantage of historically low interest rates – which are lower today than they are 90% of the time. And, if we delay, interest rates will likely continue to increase. An increase of .25% will cost more than $500,000 each year.
Taxpayers will not have to pay any additional funds for the expansion of the ACC and the General Fund will not incur any added annual debt service.
Retain existing business. Capture larger meeting intensive conventions. ACC currently cannot accommodate due to lack of meeting space. Maximize our occupancy by holding concurrent conventions. With an expanded Convention Center, the ACC will have room to hold multiple large events simultaneously, or have one event being set up while another event is breaking down. Replace Car Park 1- a parking structure in need of significant repair. The ongoing maintenance effort to keep Car Park 1 operational has been increasing for several years. Surveys conducted by structural engineers on a semi-annual basis show a steady increase in number of slab crack repairs, as well as column support, spall repairs, and lack of ceiling height to allow for seismic retrofitting. Capitalize on economic and fiscal benefits. The total measurable tax revenue to the City is estimated to be $9.5 million annually or $112 million over a 10-year operating period. Create jobs. An estimated 1,860 jobs during construction will be created and 2,043 new jobs will be supported annually.
Ultimately, if we do nothing to the ACC then it is estimated that event activity will decrease, we will see an increase in operating loss, and reduction in the overall economic and fiscal benefits. In fact, by doing nothing, it will have a negative effect on the tax revenue that comes into the City’s General Fund. This tax revenue is a viable and critical financial source and it is used to fund the bulk of city services. Whereas, if we expand the ACC, it will not only enhance its marketability but also improve the Convention Center's competitive position for the next 10-15 years.
We know that we can expand our marketing reach to include large corporate, technology, and medical meetings as examples of markets that find Anaheim and the campus setting to be a desirable location to convene and conduct business. Adding 200,000 square feet of flex space will allow the ACC to compete in these growing markets.
78 percent of groups would utilize the proposed flex space as exhibit space, and 90 percent of respondents would utilize the proposed flex space as meeting/ballroom space.
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