The Business Of - Conventions, Trade Shows, Major Sporting Events, Entertainment, Salina & The Bicentennial Center
I
THE BUSINESS OF -
Conventions
Trade Shows
Major Sporting Activities
Entertainment
SALINA AND THE BICENTENNIAL CENTER
A Report To: Mr. Rufus L. Nye, City Manager
From: Bill Harris, Asst. City Manager/Bicentennial Center Manager
June 10, 1983
TABLE OF CONTENTS
Section Page
Report and Proposal...................................... 1
Conclusions...........................................,., 7
Recommenda t i ens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Appendices:
A. Physical Limitations of the Bicentennial Center.... 10
B. Bicentennial Center Use............................ 12
C. Examples of Problems Being Experienced............. 14
D. Kansas Medical Society - A Case Study.............. 17
E. Large Events At Bicentennial Center................ 19
F. Events Possible With Bicentennial Center........... 21
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REPORT AND PROPOSAL
In 1976, Salina voters approved construction of a combined convention,
sports and entertainment center. A commitment was thereby made to compete
with other communities throughout the state and central states area for such
events.
Conventions, trade shows, sports and entertainment, as a package, is
big business; a multi-million dollar business in Salina's case. Salina,
like most communities, is continually in quest of new business, more jobs
and ways to bring outside money into the local economy.
We've taken the plunge, so to speak, in the business of conventions,
sports and entertainment. Now it would appear to be only "good business
practice" to chart the future course of that business. This is to suggest
we need more of a sense of direction than we now have.
The appeal then is for an independent, professional, comprehensive
study which would involve not only the Bicentennial Center, but also the
many interrelated services and facilities. Hopefully, such a study would
tell us what could and should be done to strengthen our competitive posture
over the course of the next 5, 10 and 15 years or possibly longer.
Certainly, if this were a private business, especially with a $6.5
million plus capital investment, there would be a long-range plan addressing
potential clients, capital needs, market strategies, technological changes,
etc. I reiterate this is a business generating several million dollars
annually for the local economy and quite possibly with a potential of
increasing that appreciably.
There is a need for that potential to be thoroughly explored and
clearly identified. There is a further need for a defendable course of
action to be charted so that we can make that potential a reality. If
indeed Salina has realized its potential in the convention, sports and
entertainment business, we should be so informed. But, we should also know
what will be required just to maintain the status quo.
Just to take it as it comes, without a comprehensive plan of action and
the assurance that we are real izing maximum benefit from our resources as
well as doing all we can to be an aggressive competitor, doesn't seem to be
good business or what the voters had in mind when they approved construction
of the Bicentennial Center.
Upon approaching four years of operation, we feel it is critical for us
to fully assess the future of the Bi centenni a 1 Center. The Center was a
large venture for the citizens of Salina. The study committee appointed by
then Mayor Jerry Simpson assembled information to assist voters in making
the decision as to the benefit of such a facility to Salina's future.
The Center has proven to be of significant financial value to the
economy. It has also provided many conveniences and made it possible for
the public to participate in social, business, entertainment, athletic and
other activities, which would not have been possible, or at least would have
been limited, were it not for the Center.
While the operation and maintenance of the Center require a substantial
subsidy ($265,000 or approximately 39% of the annual budget) and the annual
debt service for the building exceeds half a million dollars, several times
that amount is injected into the local economy as a direct result of events
hosted at the Center. Visitors, while attending events at the Center,
patronize motels, restaurants, service stations, retail establishments, and
places of entertainment.
2
Projections related to facility staffing requirements, potential use,
etc., were to a great extent based on information obtained from various
types of facilities in a number of locales. Only so much could be antici-
pated and forecast in 1976. Each of the facilities studied at that time had
tota lly different ci rcumstances to dea 1 with, such as thei r respecti ve
markets, competition, physical aspects of the structures, financial and
political constraints, etc. Many of the projections appearing in the
Concept Design Analysis have proven to be fairly accurate. Due to limited
finances, a number of the recommendations have not materialized.
Salina now has the benefit of its own experience, which has disclosed
many of the pluses and minuses of the Bicentennial Center. We have also
recognized many of the factors we must deal with in our market area. We are
seeing an increase in competition, not just a gradual increase concentrated
in a particular area. Rather, the increase is developing rapidly in a
number of key locations.
Within the past couple of years, Ho1idomes have opened in Manhattan and
Lawrence. Wichita is in the process of adding a 100,000 square foot
exposition hall to Century II. Shawnee County voters just approved a $19.5
million bond issue to construct an arena and develop other facilities on the
State Fair Grounds.
Through the efforts of the Convention and Visitors Bureau, the Center
staff, and many groups and individuals, Salina appears to be gaining recog-
nition as a desirable location for district, state and regional conventions,
trade shows, etc. Inroads are gradually being developed into the long-
standing convention circuits.
3
At the same time, we are more and more frequently encountering problems
in satisfying the space requirements and program schedules of potential
patrons. We may succeed in getting an organization to use our facil ity
once, but if they are crowded, inconvenienced, uncomfortable and experience
delay or other difficulties in their program schedule, we are liable not to
get them to return. Also, if the attendees at a function leave dissatis-
fied, they are not going to enhance our chances of attracting other groups.
Due to the fact many groups require a general session or sessions,
break-out rooms, 1 uncheons, recepti ons and banquets and exhibit space, we
are finding it extremely difficult to accommodate groups of more than 500
for conventions. Also, we can only handle one convention at a time. Trade
shows, such as the Mid-America Farm Expo and the AMBUCS Sports and Leisure
Living Show, are in need of more indoor exhibit space.
We are in need of additional meeting and exposition space at least
equal to Heritage Hall. As the building and activity increase, there will
be a need for additional office space. We have also found the surfaced
parking area to be very inadequate, particularly when more than one event is
going on in the Center, when there are activities in the County facilities
at the same time as in the Center, or when a major portion of the lots is
being used for exhibits.
Probab ly the one, uni que and most important asset Salina has when it
comes to competing for conventions and other events is its central location
at the intersection of 1-70 and 1-135. Other factors, such as the economy,
new developments in transportation and communication, new and/or additional
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competition, may change from time to time. The one advantage Salina can
bank on to remain unchanged is its geographic location within the State of
Kansas. To fail to capital ize on it at every opportunity is to slight
ourselves.
One disadvantage we have is the separation between the Center and
lodging facilities. We don't believe this is a major detriment, but we do
know some organi zati ons convene where everythi ng can be handl ed at one
faci 1 ity or 1 odgi ng is nea rby. So long as the motel operators provi de
quality facilities and services at reasonable prices and the availability of
rooms keeps pace with the demand, this should not be a serious liability.
Likewise, the Bicentennial Center must be able to offer adequate
facilities and good services for conventions with attendance up to at least
1,500 people. At the same time, the arena portion of the Center must be
kept available to the maximum extent possible for entertainment, since
concerts are the major revenue producers for the facility.
Part of the problem is that organizations and businesses want to hold
their conventions, seminars and trade shows from the fall through the
spri ng. Very few events of thi s type are schedul ed duri ng the summer. We
also have basketball and other sporting events going on at the same time.
This congestion is causing us to lose out on many very desirable and pro-
fitable events.
Perhaps the present Bicentennial Center along with adjacent meeting and
lodging facilities are of the optimum size and number in relationship to our
market potential. This seems highly doubtful and should be determined by
sound and accepted research practi ces. The present structure was sold to
the voters without the benefit of an exhaustive, independent market
research.
5
There are quite a number of recommendations in the Concept Design
Analysis, prepared by Bucher & Willis, April 1977, which were either
eliminated or severely reduced due primarily to funding limitations. These
recommendations should warrant further consideration.
The Center is in the difficult position of actively seeking conven-
tions, only to use makeshift methods to accommodate them. Three options are
available to us:
A. Book only conventions that we can adequately handle, knowing
that some of them will in time outgrow our facility.
B. Book whatever we can get and do the very best we can (our
present pol icy). However, each dissatisfied convention
delegate will let other people know of our inadequacies.
C. Investigate the feasibility of an expansion program.
Looking at the future of the Bicentennial Center, the latter appears to
be the most sound option and would offer a number of side benefits. The
P.R. generated by expansion would heighten interest in the facility. It
would further demonstrate our intention to accommodate as many conventions,
trade shows, sporting events, and entertainment activities as possible and
do it with facilities which will make tenants, patrons and visitors want to
return.
There is another important argument for this move. Wichita plans to
open a major addition to Century II in July, 1985 and is working to attract
major regional and national events. At first glance this would appear to be
another blow to Salina's convention/trade show industry. However, it could
prove to be a blessing. Wichita annually hosts many conventions we would
like to attract, but their clients are satisfied and it is very difficult to
"lure" them to Salina.
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Wichita will no doubt be successful in attracting major conventions and
trade shows, and some of these events wi 11 fa 11 on dates that woul d have
been used by smaller events. When that happens, Salina needs to be ready to
fill in. Our expansion would not only free the arena and accommodate larger
events, but would give us more available area to rent on a daily basis. The
ability to host more events at the same time could only help increase
revenue. We are forfeiting many events because our facilities have been
committed on the date or dates desired.
CONCLUSIONS
1. Salina needs to bear in mind that the competition for conventions,
major sporting activities and entertainment events will continue to
increase.
2. Salina should endeavor to establish and maintain a strong
competitive position in the state and regional market involving
conventions, trade shows, sports and entertainment.
3. As stated in a recent Kansas State University marketing study,
there are many potential clients/events throughout Kansas and
surrounding states whi ch coul d be attracted to Sa 1 i na with the
right amount of effort.
4. Salina has the advantage of a central geographic location at the
intersection of Interstate Highways.
5. The utilization of the Bicentennial Center is to a considerable
degree contingent upon the adequacy of support services and facil-
ities, such as lodging accommodations, catering, retail stores,
restaurants, transportation, etc.
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6. We are forced to use the arena or a portion of Heritage Hall at
times for small groups which render them unavailable for larger
groups and revenue producing events such as concerts.
7. The staff of the Bicentennial Center has established a good
reputation for being accommodating and doing an exceptional job in
servicing events. They have done a superb job of innovating and
making do with what is available. This is fine up to a point.
Often it results in overtime, a waste of manpower or an excessive
crunch in handling changeovers. There is a limit to how effective
we can be in coping with such handicaps and still be able to
provide services expected by our tenants.
8. We need some type of yardstick in order to know where we are in
relationship to where we should be so far as our market potential
is concerned.
RECOMMENDATIONS
1. Provide funding for an independent, professional study addressing
all aspects of the convention, trade show, sporting activities and
entertainment business as it relates to Salina and the
Bicentennial Center.
2. Proposed study to be performed by an organization having a broad
base of expertise in order to accomplish at least the following:
a). Analyze the current market and its potential.
b). Make recommendations on how to increase market
potential.
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c). Outline a promotional strategy.
d). Project potential increase of business if recom-
mendations are followed.
e). Determine economic impact on Salina.
3. Fund the study through federal revenue sharing funds, Transient
Guest Tax, sales tax or any combination of same.
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r--..-.
APPENDIX A.
PHYSICAL LIMITATIONS OF THE BICENTENNIAL CENTER
Most conventions require:
a. general session area with seating for all delegates;
b. break-out rooms with combined seating for all delegates;
c. luncheon and banquet area with seating for all delegates;
d. hospitality areas; and
e. exhibit space.
The Bicentennial Center has 8 second floor meeting rooms with a maximum
capacity of 500 people auditorium style. Half of Heritage Hall will seat
500 people banquet style or 950 auditorium style.
The physical limitations of the Bicentennial Center make most conven-
tions of over 500 delegates difficult, if not impossible, to accommodate.
One way we have hosted larger conventions is by using the arena for the
general sessions. This is a poor arrangement for three reasons:
1. Aesthetically, the exposed steel beams, concrete floors and
mercury 1 ights do not provide the atmosphere desired for a
general session.
2. The size of the arena dwarfs a group of 700 to 800 and
distracts from the speaker.
3. Financially it is unsound. The cost to heat or cool and light
the entire arena so that a small group will be comfortable is
prohibitive.
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1-
More detrimental, however, is that tying up the arena for a few hours
makes it impossible to book the arena for the type of function it was
designed for. More specifically, even if we received $400 per day for this
use of the arena, it would take the entire gross profit for 25 days to equal
the net profit of one average concert. We have lost major enterta i nment
attractions because the arena was booked for a meeting connected with a
convention.
This "sometimes acceptable" arrangement for the general session, which
frees up Heritage Hall for the meal functions, still leaves us with too few
meeting rooms. We have:
1. used the arena as an extra meeting room for groups as small as
100;
2. used shuttle buses to pick up delegates leaving the general
session, take them to hotels for a small meeting, and then
bring them back to the Bicentennial Center;
3. rented Kenwood Hall and hoped for fair weather while the
delegates walked over to the alternate site; and
4. used divider curtains to define the "meeting rooms." The
curtains do provide a visual barrier between groups meeting
concurrently, but do nothing to block sound.
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APPENDIX B.
BICENTENNIAL CENTER USE
The following table compares use of the Center by the first quarter of
1981, 1982 and 1983:
FIRST QUARTER
Difference
1981 1982 1983 1981 - 1983
Number of Events 50 41 40 - 20%
Number of Days 70 62 57 - 19%
Number of Days - Heritage Hall 40 39 45 + 13%
Number of Days - Meeting Rooms 51 40 30 - 42%
Number of Days - Arena 34 42 43 + 26%
Number of Open Days 17 25 32 + 88%
This survey shows some very interesting trends between 1981 and 1983.
The number of events and days when some part of the building is used have
dropped in 1983 by 20 percent. In 1983, completely open days jumped a
whopping 88 percent! All of these trends follow the same pattern in 1982.
Without close examination, these figures would look ominous; however,
you will notice that Heritage Hall and Arena days are increasing and meeting
room days are dropping. We believe this trend will continue.
Now, let's examine 1982 closer. In 1982, the Bicentennial Center was
in use 7 percent fewer days than in 1981 and the number of events was down
25 percent. The only change in faci1 ity space use was that meeting rooms
were down by approximately 11 percent. Events using the arena and Heritage
Hall remained the same. 1982 attendance was UP 34,000 people.
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Using actual figures for 1981 and 1982 and examining the first quarters
of '81, '82, and '83, we find a number of important factors:
1. The events are of increasing size, requiring more space; i.e.,
Heritage Hall and Arena. Use of small, individual meeting
rooms unrelated to conventions is declining.
2. More events are using different parts of the facility concur-
rently; i.e., two or three large events being hosted the same
day in 1983 as opposed to smaller events using one portion of
the Center in 1981.
3. The increasing size of the events requires additional time and
manpower to changeover. To change a meeting room from banquet
to auditorium to classroom style for three functions on three
consecutive days can be done easily. To do the same thing in
full Heritage Hall would be almost impossible and would require
at least one day open prior to the banquet and one day open
after the classroom.
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APPENDIX C.
EXAMPLES OF PROBLEMS BEING EXPERIENCED
1981
Kansas Water Well Convention January 13-16, 1981
Had to use arena for exhibits while half of Heritage Hall remained
empty.
Kansas Funeral Directors May 3-6, 1981
68 exhibits in arena (used approximately 13,000 sq. ft. of the 21,000
sq. ft.) while half of Heritage Hall (9,000 sq. ft.) was unused.
Kansas Bankers Convention May 13-15, 1981
Full Heritage Hall changed minimum of three times (in three days).
Arena used for main banquet.
1982
U.S. Fire Public Education January 12-14, 1982
Arena used approximately six hours on Wednesday; however, the exhibits
displayed moved in Tuesday and moved out Thursday. Because the
conference was open to the public at certain times, the entire facility
was used. Convention delegates - 250.
Hunter Safety Seminar April 29-May I, 1982
Had to use the arena for a social on the 29th for 400 people because no
other space was available.
American Legion May 14-16, 1982
Arena for general session - 1,000 people two hours per day.
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Kansas Hospital Association November 9-12, 1982
Seven room changes; four of them major. Arena used for general
sessions and as a meeting room for groups as small as 250. They were
disappointed with the arena for these purposes.
Motivational Training December 3-5, 1982
Heritage Hall was changed from 1/2-Hall Friday night (or 1:00 A.M.
Saturday) to 3/4-Hall Saturday morning, to full-Hall Saturday evening
(until 1:00 A.M. Sunday) to 1/4-Hall Sunday morning at 9:00 A.M. They
plan to use the arena in 1983 for Saturday night banquet (1,000 people).
1983
(Events we foresee problems on)
Kansas Association for Middle Level Education Day after Farm show.
Insufficient meeting room space.
Gun Show April
Scheduled in arena and caused loss of two major concerts.
Funeral Directors May
Same problems as 1981.
JOBS Daughters - Smoky Hill River Festival June
Same da tes .
Tri-State Florists Convention July
Changeover problems in Heritage Hall and meeting rooms. Use arena for
exhibits and demonstrations.
AA State Conference September-October
Anticipated attendance about 1,900. Will use arena for general
sessions. Heritage Hall will be used for hospitality and meals.
Likely to be short on meeting room space.
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Motivational Training December
Arena for main banquet.
Mid-America Farm Expo
Farm Show is unable to accommodate all requests for indoor exhibit
space.
At least twice a year, the Isis Shrine uses the entire facility on a
Saturday. The arena is needed to host part of the dance from 9:00 P.M.
to 1:00 A.M. Because of the late hours and large size, the arena cannot be
booked for Fri day, Saturday or Sunday. Thi s tie-up has cost us concerts
(Hall and Oates in 1983) and nearly a State Wrestling Tournament in 1985.
The 4A State Wrestling Tournament might move to Salina; however, in
1984 the Center is unavailable because of AMBUCS in arena and 1986 is
unavailable because of Lee Hardware in arena.
In keeping track of some of the events we have to turn down, since
January, 1983 we have lost four major events per month (average).
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APPENDIX D.
Kansas Medical Society - A Case Study
We were told to expect 400-500 delegates as late as April 4, 1983. The
number then increased to 550-600. On the first day of the conference, April
13, we were told they needed more chairs in Heritage Hall for the general
session al ready in progress. It was set for 600; actual attendance was
650+.
The other half of Heritage Hall was to house ten exhibits, encompassing
approximately 3,500 square feet, plus a continental breakfast and coffee
breaks. The number of exhibits grew to 14 two days prior to the conference
and 16 the day before. Three exhibits arrived the morning of the confer-
ence, which had to be placed in the lobby. The larger attendance dropped
the exhibit area to approximately 2,800 square feet, so we had 60% more
exhibits in 20% less space.
For the luncheon, the preferable round tables had to be changed to 8'
rectangular tables to accommodate the 600 expected delegates. We were told
there would would be a maximum of 600 for luncheon, but the first day we had
to increase the seating to accommodate 672. Six hundred people were a tight
fit, so one can imagine close to 700.
Who will be held to blame for the inadequate seating? The average
conference delegate will blame the Bicentennial Center.
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Let us now examine the meeting rooms. The first hint of trouble came
on April 7 when we finally received the room requirements:
Time
Meeting Room
Maximum Capacity
# Delegates Expected
62 people
117 people
92 people
66 people
148 people
55 people
* 540 people
*NOW WE HAVE 650; where do these extra 110 people go?
134 people
89 people
78 people
93 people
158 people
552 people
Excluding the general session area, these meeting rooms (with a maximum
2:15 - 3:30 P.M.
3:45 - 5:00 P.M.
202 A-B
203 A-B-C
201
200
Only general session area
202C
100
150
100
100
available
50
- 600
203 A-B-C
200
202 A-B
201
Only general session area
150
100
100
100
available
- 600
capacity of 450) were set to accommodate 394 people. We had 100 extra
people planning to attend these meetings.
The first three speakers had audio visual requirements that we were not
informed of until minutes before their use was required. The staff of the
Bicentennial Center is the force keeping this convention on a somewhat even
keel, but we will be very surprised if we still do not receive some criti-
cism of our facility's capabilities.
We were advised the organization
turned down a number of people wanting to register on the day of the event.
The incidents described above will give some indication of the problems
we encounter in handling conventions of 600 plus.
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APPENDIX E.
LARGE EVENTS AT BICENTENNIAL CENTER
These events could not have been held in Salina in 1982
at these levels without the Bicentennial Center
DATE EVENT ATTENDANCE
1/8/82 Central vs South Basketball Game 3,000
1/9/82 Tony's Banquet and Dance 802
1/12-14/82 * U.S. Fire Public Education Conv. (Used Arena) 250
1116/82 Tony's Banquet and Dance 978
1/20-23/82 Salina Invitational Basketball Tournament 9,500
1/28/82 Chamber of Commerce Banquet 1,027
1/30-31/82 S&P Coin and Stamp Show 1,500
2/5/82 Special Olympics 1,200
2/7/82 KSKG Bridal Review 650
2116/82 South vs Central Basketball Game 3,800
2/25-28/82 Homebuilders Show 3,740
3/4-7/82 Lee Hardware Trade Show 2,000
3/11-13/82 4A State Basketball Tournament 10,200
3119-21/82 AMBUCS Leisure Living and Sports Show 5,800
3/23-25/82 Mid-America Farm Expo 35,000
* Used Heritage Hall and Meeting Rooms for sessions and exhibits.
** Used Heritage Hall for exhibits, reception and banquet.
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* Used Heritage Hall and Meeting Rooms for sessions and exhibits.
** Used Heritage Hall for exhibits, reception and banquet.
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APPENDIX F.
EVENTS POSSIBLE WITH BICENTENNIAL CENTER
Due to size and program requirements these events could not have
been held in Salina in 1982 without the Bicentennial Center
DATE
2/19-21/82
2/26/82
3/27/82
4/8-10/82
4/23/82
5/14-16/82
6/4-5/82
6/25/82
7/4-5/82
7/27/82
8/5/82
8/15/82
8/27/82
9/4/82
10/2/82
10/16/82
11/9-12/82
11/27/82
12/2/82
12/4/82
12/3-5/82
EVENT
ATTENDANCE
600
Aid Association for Lutherans Convention
Three Dog Night Concert
Daryl Hall & John Oates Concert
Kansas Kids Wrestling
3,200
7,575
5,958
KS Future Homemakers of America Convention
2,800
American Legion Convention
1,400
1,800
7,387
1,800
5,689
7,846
8,000
Kansas State Square Dancers Convention
Oak Ridge Boys Concert
Skyfire Car Show
Kansas Concert
Loverboy Concert
John Denver Concert
Ted Nugent Concert
Air Supply Concert
Chicago Concert
2,747
5,513
5,292
500
800
Kansas Pride Day
Kansas Hospital Assn. Convention
Alabama Concert
7,428
Statler Brothers Concert
5,500
880
900
83,615
Full Gospel Businessmen's Banquet
Flying Eagles (Amway)
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