May - Albany Colonie Regional Chamber of Commerce

ViewpointThe time has come for a New YorkState Convention Center in AlbanyCreating jobs for New Yorkers is one of thekey ingredients in helping to get our state’seconomy back on a forward, positive track.Therefore, New York state cannot afford toforgo investing in economic developmentprojects that ultimately lead to job creation.Albany is the seat of our stategovernment, and economic developmentprojects in the capital city have positivestatewide implications. The fullreappropriation of the New York stategrant in the budget proposed by GovernorCuomo and then passed by the legislatureseizes this initiative. Enjoying the fullsupport of political leaders, includingSenator Neil Breslin, Assemblyman RonCanestrari, Assemblyman Jack McEneny,Albany County Executive Michael Breslinand Mayor Jerry Jennings, among manyothers, the New York State ConventionCenter/Albany will ensure a brighterfuture for the more than 19 million citizensof New York state while bringing direct,tangible economic benefit to the CapitalRegion and beyond.Breaking ground on the proposed297,500-square-foot New York StateConvention Center requires the releaseof the allocated funds from the 2006New York state grant of $75 million. Thebalance of the monies required for the$220 million center, approximately $157million, will be raised from the sale of taxexemptmunicipal bonds and paid back bythe revenue from the center, a portion ofthe Albany County hotel/motel occupancytax and a modest annual subsidy.That subsidy, of about $9 million, paidby the state, is the equivalent investmentof just 47 cents per year by the citizensof New York state to raise the bar in ourcapital city, one of only three among thecapitals of similarly populated states thatdo not currently have a convention center.Additionally, nearly 75 percent of the landneeded for the project has been purchased;less than two acres remain to be secured.Albany presently loses approximately$20 million per year in convention andadditional meeting business due to a lack offacilities, according to the Albany CountyConvention and Visitors Bureau. Thereis currently no facility in Albany that canaccommodate larger-scale conventionbusiness and, as a result, that business isgoing elsewhere.The Capital Region, as an importanthub of the ever-growing Tech Valley, is aconstantly expanding medical, educationaland technology center providing Albanywith numerous opportunities to attract newconvention and meeting business. Thisunique opportunity can become a realityonly if there is a facility to accommodatethe needs of future visitors, businesses andtheir customer base.“Having a new, full-service venue willprovide Albany with a competitiveadvantage at the national level, thusallowing for rapid growth in the muchanticipated recovery.”It has been estimated that visitorspending and activity associated with aconvention center in downtown Albanywould exceed $60 million per year.Additionally, it is estimated that conventioncenter business would generate more than$3 million in annual tax revenue from hotelrooms, rental cars, meals and the purchaseof other goods and services.The convention center will takeapproximately two years to build.During the construction period alone,approximately 300 jobs will be createdon average. These are highly skilled tradepositions that pay well at a time whenconstruction jobs are desperately needed.Gavin DonohueChairmanAlbany Convention Center AuthorityOnce the center is completed,combined with the privately owned hoteland parking facility, more than 1,000permanent and full-time equivalent jobswill be created.This aggregate of present day andfuture job creation will have a significantpositive impact given the state’s current,and historically high, unemployment rate,particularly in the hardest hit sectors ofthe economy. Those full-time positions alsohold great potential to be “game changers”for minority residents, women and thehistorically disadvantaged, many of whomexperience not only unemployment but alsosignificant demographic underemployment.Proceeding with a convention centerat this time places Albany in a primeposition to compete for future businessthat is booking now for events two andthree years from now. Having a new, fullservicevenue will provide Albany with acompetitive advantage at the national level,thus allowing for rapid growth in the muchanticipated recovery.Additionally, building the conventioncenter now takes full advantage ofhistorically low interest rates, significantlylower construction costs, and results in anopening that coincides with the expectedrebound of the meeting and conventionbusinesses by 2013, according to severalindicators.Clearly, the New York StateConvention Center/Albany is a projectwith positive regional and statewideimplications.Albany is poised for this economicdriver, and looks forward to its success andto the future of Albany and the CapitalRegion. •32 | acchamber.org | techvalley.org