A comprehensive feasibility study commissioned by Escambia County reveals ambitious plans to modernize the aging Pensacola Bay Center and add two major new facilities that could generate nearly $60 million in annual economic impact for the region.
The study by CSL and Legends Global outlines a three-pronged approach: renovating the existing 40-year-old arena, building a new multipurpose event center, and constructing a practice ice rink—all connected as an integrated campus. The Board of County Commissioners will receive a representation of the report at its board meeting on Thursday, Jan. 22. See 2026 Bay Center Report.
The Current Situation: The Pensacola Bay Center, which opened in 1985, has served as a community asset for nearly four decades, hosting thousands of events, including Pensacola Ice Flyers hockey games, concerts, and the Sun Belt Conference Basketball Championships. The facility currently averages 123 annual events with 352,700 in attendance.
- The study identifies significant “operating inefficiencies and lost economic opportunities due to facility age, space deficiencies, and proximate hospitality product support.”
Three Major Components
The proposed 105,000-square-foot multipurpose event center would feature:
- 55,500 net square feet of column-free event space (185′ x 300′)
- Moveable airwalls allowing subdivision into three halls
- 35-foot minimum ceiling height
- 6,000 square feet of breakout meeting space
- Portable retractable seating for 2,000
- Warming/prep kitchen
The facility would be connected to the existing Bay Center via enclosed walkway and designed to host conventions, trade shows, consumer shows, banquets, and amateur sports tournaments.
Projected Performance (Year 4):
- 180 annual events
- 271,300 attendee days
- 38,600 net new hotel room nights
2. Practice Ice Rink ($29.8 Million)
- One permanent NHL-size ice sheet (200′ x 85′)
- Fixed seating for 600-1,000 spectators
- Four locker rooms with toilets and showers
- Two party rooms/flex rooms
- Pro shop and concessions
- Optional physical therapy/weight room space
Projected Performance (Year 4):
- 4,700 annual rentals
- 201,900 attendee days
- 10,700 net new hotel room nights
3. Bay Center Renovations ($71 Million)
Improvements to the existing arena would include:
- Exterior upgrades and façade enhancements
- New club seats (400-600)
- Two new club rooms/areas
- Expanded concourses
- Enhanced food & beverage and retail spaces
- New LED signage
- Back-of-house and central plant upgrades
- $15 million in deferred maintenance
The study notes these renovations are projected to generate approximately $2.5 million in annual incremental net revenue.
Economic Impact: The Bottom Line
- Direct spending: $35.1 million
- Indirect/induced spending: $24.1 million
- County sales and hotel tax revenue: $1.4 million
- Employment: 748 full and part-time jobs
- Personal income generated: $24.4 million
Combined, the three facilities are projected to host 473,200 attendee days annually, with 149,500 non-local attendee days generating 49,300 hotel room nights.
Financial Sustainability
The study projects all three facilities would operate in the black:
Year 4 Net Operating Income Projections (2031):
- Pensacola Bay Center: $2.13 million
- Event Center: $902,413
- Practice Ice Rink: $771,532
- Combined Total: $3.8 million
The projections factor in approximately $1.3 million in annual efficiencies achieved by centralizing operations across the three-facility campus.
Parking and Infrastructure Needs
The development would require:
- Event Center: 1,200 incremental parking spaces
- Practice Ice Rink: 350 incremental parking spaces
- Hotel pad and utility connections: $4 million
- Total campus footprint: Approximately 2.4 acres for Event Center alone
Comparable Projects
The study references several comparable facilities to validate cost estimates:
- Extraco Event Center (Waco, TX, 2019): $400/square foot
- Ohio Expo Hall (Columbus, OH, 2026): $750/square foot
- Wellesley Sports Center (2019): Adjusted to $500+/square foot for 2026
- Mosaic Quarter: Current construction at ~$625/square foot
Key Takeaways
The study identifies seven major benefits:
- Modernizes spaces within the Bay Center
- Creates new incremental operating revenue opportunities
- Generates additional demand and new visitation
- Achieves efficiencies through shared infrastructure and services
- Enhances the Pensacola brand
- Improves quality of life for residents
- Generates economic returns for the county
What’s Next?
The feasibility study provides a roadmap, but significant questions remain about funding sources, timelines, and governance structure. Meanwhile, Pensacola Mayor D.C. Reeves has also hired a consultant to examine the entire area surrounding the Bay Center. He expects to get that report next month.
This feasibility study represents a significant moment in Pensacola’s ongoing downtown development. Stay tuned for further coverage as this project moves through the approval process.
What do you think? Share your thoughts in the comments.