Studies show that an indoor sports facility would have a much more significant economic impact than adding a conference center. While neither project would generate a lot of tax revenue, the indoor sports facility would do better.
- To be successful, a new conference center must be adjacent to a high-quality, full-service hotel and located downtown.
Three studies show the impact of adding an indoor sports center and a larger meeting facility to Escambia County to increase tourism during the shoulder season. The Tourist Development Council paid for all three, and the studies were presented and discussed in public meetings.
The studies include:
- Community Recreation and Sports Tourism Needs and Facility Feasibility Study – conducted by Crossroads Consulting Services and presented February 2016. Escambia Sports Tourism Final Report February 2016
- Market and Economic Impact Analysis for a Potential New Meeting Facility in Pensacola, Florida – conducted by Crossroads Consulting Services and presented December 2017. Meeting Facility in Pensacola Report December 2017
- Ashton Brosnaham Indoor Sports Facility Feasibility Study, conducted by Crossroads Consulting Services, Convergence Design, OWN Consulting and Nova Engineering & Environmental and presented July 2024. Brosnaham Study
Tax Revenue Generated:
Some have protested that the Brosnaham facility would only generate $1.1 million in local tax.
- The studies show little difference in tax revenue generated whether the indoor sports facility is located in downtown Pensacola or Ashton Brosnaham Park.
The 2016 study focused on the Port of Pensacola and the former Main Street Plant site as ideal downtown Pensacola sites. In Escambia County, tax revenues—both bed and sales—were estimated to be $802,000 to $921,000.
- At Broshnaham, the tax revenue for Escambia by Year 5 would be $1.1 million.
Spending
The downtown facility would generate $37.8 million to $43.3 million in direct and indirect spending.
- Broshnaham facility would generate $37.5 million in total spending by Year 5.
Meeting Facility
Visit Pensacola recognized that Pensacola needed more meeting space. Its Destination 2020 effort had an Asset and Product Development Goal, which included developing destination assets that attract visitors while contributing to the quality of life of community residents.
Visit Pensacola retained Crossroads to assess specific market and economic factors associated with the potential demand for new meeting space in Pensacola under two scenarios:
1) constructing a multi-use facility using the recommended space in the sports study completed in 2016, along with an additional meeting component and
2) utilizing the existing space at the Bay Center. The analysis also comments on potential opportunities/synergies to co-locate with other existing/proposed projects.
Industry Trends
On a national basis, the supply of exhibit and meeting space had increased while the demand for space had decreased, resulting in a buyer’s market.
- This caused facilities to compete on overall price and value to adapt to changing conditions. Facility users placed an increasing demand on technology and innovation, client and attendee experience at a facility and the overall destination, and food and beverage.
Market Findings
Market demand existed for a new meeting facility in Pensacola if it offered an adjacent full-service hotel and was downtown. The need for a nearby convention-quality hotel and downtown amenities were significant factors and directly linked to the viability of a new meeting facility in Pensacola.
Research suggested that a new meeting facility in Pensacola could be developed under one of the following scenarios:
• A stand-alone facility that incorporates meeting, ballroom, and flexible space. The flexible space should be designed to be convertible and accommodate various functions, including meetings and exhibits, based on event needs.
• A facility with meeting rooms and ballroom space that is incorporated into an indoor sports facility. The indoor court space could be designed to be used as supplemental exhibit space based on event needs.
Under both scenarios, the concept was only viable from a market perspective if pursued in tandem with an adjacent hotel and within walking distance of downtown Pensacola, whether it was a stand-alone meeting facility or part of a shared indoor sports facility.
- From a building program perspective, a key factor was designing the facility to accommodate the unique needs of user groups while maintaining maximum flexibility.
Meeting Facility has less economic impact than an indoor sports facility
The total spending estimated generated by a new meeting facility was $9 million to $11.3 million – only a third of the indoor sports facility.
The tax generated was also significantly less than that of the indoor sports facility in Escambia County: $204,000 – $250,000.
….drop the mic and walk off the stage.
Photo Licensed under the Unsplash+ License
Renovating the Pensacola Bay Center is a big NEED. An indoor sports facility in nowhere is a small WANT. Earlier this year, the PNJ described a projected $73 million cost to upgrade the Bay Center. The recent plan presented to the TDC only describes a $44 million project. The TDC is proposing to fund only two-thirds of that project, and well less than half of the $73 million really needed. The BCC with two or three new members seated in November should direct the TDC to present a plan to fund all needed Bay Center upgrades using TDC monies. The BCC should be in no rush to make a multi-generational mistake. Watching the TDC meetings on August 29th and September 9th, I was reminded of how former Commissioner Underhill once described county decision-making – “Ready, Fire, Aim.”
Please read the studies. Go to the TDC agenda and download the entire presentation of the Brosnaham proposal. You concerns are addressed by experts.