The Metropolitan Pier and Exposition Authority (MPEA) in Chicago has approved the sale of up to $231 million of bonds for the McCormick Place Expansion Project. The project includes upgrades to the Lakeside Center building and renovation of guest rooms at the Hyatt Regency McCormick. The bond sale, consisting of Series 2024A and Series 2024B bonds, is scheduled for July 22. The MPEA collected $154.4 million in taxes in 2020, which decreased in 2021 due to the pandemic but rebounded to $117.22 million in 2022 and $168.42 million in fiscal year 2023. The expansion project has been successful, with operating revenue exceeding budget expectations and delivering significant economic impact for the city and state.
America’s Center Convention Center in St. Louis
In contrast to the success of the McCormick Place project, the America’s Center convention center in St. Louis has faced challenges in its expansion efforts. Delays and cost overruns have plagued the project, with Explore St. Louis requesting an additional $20 million from the city to cover the escalating costs. The delay in construction has also led to a decline in convention bookings, impacting surrounding hotels. The search for a new president for Explore St. Louis is underway, highlighting the issues faced by the public tourism agency in managing the convention center expansion.
Duke Energy Convention Center in Cincinnati
The Duke Energy Convention Center in Cincinnati is undergoing a $400 million renovation project, with $317.5 million financed by tax-exempt revenue bonds. The project includes hotel and convention center renovations to enhance the facility’s offerings and attract more conventions. The bond ratings for the different series of revenue and refunding bonds indicate a stable outlook, reflecting confidence in the project’s success. The renovations have been in progress since 2019, with adjustments made to account for the impact of COVID-19 on the construction timeline.
The Midwest region is seeing a mix of outcomes in convention center renovation projects, with Chicago’s McCormick Place demonstrating successful execution, while St. Louis’ America’s Center faces challenges and delays. Cincinnati’s Duke Energy Convention Center is poised for transformation with a substantial renovation project that aims to enhance the city’s convention offerings. The success of these projects will have a significant economic impact on the respective cities and regions, attracting more visitors and generating revenue for local businesses. The management of these renovation projects requires careful planning, financial management, and stakeholder coordination to ensure successful outcomes.