FAQs
Why this location? Why is it a good location? Where is the money to finance this project coming from? How much will this cost the taxpayers/residents of New York State? Does this project increase county and/or city taxes? How much business will the center bring to Albany? What is the direct benefit to the City of Albany? How much land is yet to be purchased? Why build this center now? How large will the center be, and why? How many construction jobs will be created? How many jobs in total will be created when the center opens? Who takes care of the Center; and who pays for it when it opens? What groups support this center? Where is the business going to come from? Doesn’t the state already have a convention center at the south mall? Will the convention center accommodate parking needs? Will this parking facility cost the city of Albany? Where will all the trucks and busses park? Who will build, pay for, and run the hotel? What about the historical buildings in the area of the center? What will happen to the existing bus station? When do you anticipate breaking ground? Why this location?
- To promote economic development in the core of the capital city, the New York State Legislature in 2006 determined that the center should be built within a one mile radius of the Capitol.
- Based upon the input received from numerous public meetings and hearings and the recommendation of the market study by HVS International, this location was the most accessible and with the greatest potential to result in lasting economic benefit.
- In total, the project will comprise approximately six acres along Broadway and Hudson Avenue.
Why is it a good location?
- Optimal access to and from all major highways with minimal impact to residential neighborhoods.
- Uses underdeveloped land and provides new southern gateway to Albany.
- The close proximity to the Times Union Center will permit both facilities to function successfully.
Where is the money to finance this project coming from?
- The $63 million balance from the original 2006 New York State grant and the sale of the $157 million in tax exempt municipal bonds by the Albany Convention Center Authority.
How much will this cost the taxpayers/residents of New York State?
- There are more than 19 million residents in the state, and since this is a New York State convention center, it will cost state tax payers approximately 47 cents per person, per year, a total of $13.16 for the term of the bond (28 years).
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Does this project increase county and/or city taxes?
How much business will the center bring to Albany?
- According to an October 2009 Market Study by HVS International, it is projected that more than $60 million per year in business and commerce will come to Albany in the following forms:
- Overnight delegate spending. Delegates typically spend $200–400 per day on lodging, food, local transportation, recreation/ entertainment, and other items. Delegate spending is typically the single-largest source of direct economic impact.
- Day-trip spending. Delegates typically spend $40–100 per day on food, local transportation, recreation/entertainment, and other items.
- Exhibitor spending. Exhibitors make expenditures for lodging, meeting room rental, food and beverage service, hospitality suites, equipment rental, and other services.
- Event organizer spending. Associations make expenditures for lodging, exhibit space rental, meeting room rental, food and beverage services, equipment rental, staff living expenses, and other services.
What is the direct benefit to the City of Albany?
- Its full share of more than $3 million in taxes from the convention center business (goods and services purchased) annually.
- Additionally, the center will generate business for the existing venues, such as the Times Union Center, a sports, event and concert venue (which does not offer meeting spaces), and the Empire State Convention Center.
- HVS International estimates the center will generate 113,000 room nights required for convention center and meeting business. A full service hotel associated with the center would most likely have 250 rooms, for a total of 91,250 room nights (250 rooms x 365 days) based upon an average occupancy rate of 65 percent the hotel would service 59,312 room nights and rely upon the existing hotel industry to service the remainder of the room demand: (113,000 – 59,312), more than 53,000 room nights.
How much land is yet to be purchased?
- With additional releases of the original grant monies, the ACCA hopes to control the land required for the entire project by the end of 2010.
- Nearly 75 percent of the land needed for the project has been purchased; less than two acres remain to be purchased.
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Why build this center now?
- Construction costs (raw materials and labor) are lower than they have been in several years; the timing is right.
- Interest rates are currently very favorable.
- To garner the estimated $20 million per year in lost convention business (because of the current lack of contemporary convention space in Albany) per the Albany County Convention & Visitors Bureau (ACCVB), and more than $60 million in visitor spending per the HVS International Market Study.
- The first estimate for the original NYS concept plan of a combined convention center, hotel and parking complex was issued by the ACCA in the spring of 2008. The estimated cost then was $397 million. In response to Governor Paterson’s challenge to reduce upfront costs the project was simplified and the cost of the convention center became $220 million; nearly a 55 percent decrease. All estimates were independently developed and confirmed by the design/construction team members.
How large will the center be, and why?
- When completed, the total convention center will consist of 297,500 square-feet. Independent third party market studies, last updated in late 2009, and comprehensive business models have determined this to be the right combination of meeting, exhibition and ballroom space. The October 2009 HVS International Market Study recommends the following:
- 60,000 square-feet of exhibition space
- 25,000 square-feet of multi-purpose space
- 10,000 square-feet junior ballroom
- 22,000 square-feet of meeting space
- Through efficient design, the ratio of public space to support space is approximately 3-1 allowing the center to function smoothly and to maximize the investment.
How many construction jobs will be created?
- According to the Construction Manager, Gilbane/BBL, an estimated 300 tradespersons (390 at peak construction) will be on the job per day, for a total of more than one million labor hours, equivalent to $77.6 million in highly- skilled labor paychecks at a time when the economy needs it most.
- Also, a private hotel and Intermodal/Parking facility will generate additional demand for labor.
How many jobs in total will be created when the center opens?
- Nearly 1,000 ‘impacted’ jobs will be created. These are new jobs that will be the direct outcome of the positive economic impact in the area such as increased wait staff at area restaurants, retail outlets, and the like.
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Who takes care of the Center; and who pays for it when it opens?
- The Albany Convention Center Authority will be responsible for all operations under a management agreement with a qualified operator.
- The income from the center, the Albany County Hotel/Motel Occupancy Tax, and the State of New York.
What groups support this center?
- The following important groups have expressed their support of this project:
- Meeting Professionals International (MPI), Northeast New York Chapter.
- All organized labor: Laborers, Operating Engineers, Teamsters, Masons, Carpenters, Ironworkers, Steamfitters, Sheet Metal and Electricians.
- Empire State Society of Association Executives (ESSAE).
- Center for Economic Growth.
- Capital Repertory Theatre.
- Historic Albany Foundation.
- The Downtown Albany Business Improvement District (DBID).
- The Capitalize Albany Corporation.
- Plaza Meetings.
- nfrastructure Technologies.
- New York State Association of Foreign Language Teachers.
- Interfaith Center on Corporate Responsibility (ICCR).
- Albany-Colonie Regional Chamber of Commerce.
Where is the business going to come from?
- From any organization that conducts business with the State of New York in the capital city and for which there currently are not facilities large enough to accommodate their meetings and conventions, including: Association of School Boards, Association of Town Supervisors, public and private employee unions, veterans organizations, the health and pharmaceutical industries, inter-faith and multi-denominational gatherings, and numerous individual Social, Military, Educational, Religious and Fraternal (SMERF) groups.
- Regional shows and exhibitors from across the nation.
- New businesses to New York State, much of it related to growth in the regions technology sector.
- Entities that previously dismissed Albany as a convention location/venue due to the need for larger meeting spaces than currently available in this area.
- These are entities that favor Albany because of its convenience and accessibility, lower per diem costs, and its proximity to government agencies (county, state and federal), technology (Globalfoundries, College of Nanoscale Science and Engineering Technologies), and several higher education institutions (Rensselaer Polytechnic Institute, Union College, University at Albany-SUNY, Skidmore College, The Sage Colleges, College of St. Rose, Hudson Valley Community College, Schenectady Community College, Empire College, etc.)
Doesn’t the state already have a convention center at the south mall?
- The Empire State Plaza Convention Center has approximately 40,000 square-feet of convention meeting space and cannot accommodate larger convention needs.
- The new center will allow for state-of-the art technological advances (electronic smart/white boards, etc.) which no existing Albany facility has.
- The truck parking and unloading areas at the new convention center will be much more efficient and convenient.
- Additionally, the new center will offer enhanced safety with a 24/7/365 secure, dedicated exhibit space which is of utmost importance to today’s exhibitors of high value and those using sensitive technologies.
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Will the convention center accommodate parking needs?
- Yes. A 1,200 space parking garage is planned which is large enough for projected convention business, and to assist with downtown and other Albany visitor parking needs.
- It will also address traffic congestion as the parking facility will be located on Broadway near the highway with easy on and off access further easing the pressure on the existing street grid.
- The parking garage will be competitively priced and monitored via state-of-the-art security features making it safe and convenient.
Will this parking facility cost the city of Albany?
- No. The Intermodal/Parking Facility will be financed with bonds, which will be paid back utilizing the parking and Interstate/Intercity bus company use revenue from the facility.
Where will all the trucks and busses park?
- Trucks and busses will be parked under the South Mall arterial out of sight and not in the neighborhoods; this was of particular concern to residents in the South End and will aid in reducing traffic congestion.
Who will build, pay for, and run the hotel?
- A private hotel developer and manager.
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What about the historical buildings in the area of the center?
- Much of the six acres needed for the center was under-utilized land. However, historical preservation was important and our plans accommodate the restoration and preservation of 48 Hudson, believed to be one of the oldest examples of Dutch residential construction in Albany. As one of the oldest examples of early European settlement, the area of the convention center is potentially rich with historic significance.
- Provides the economic stimulus for the adaptive reuse of surrounding buildings among the traditional 19th century storefronts along Broadway known as Plaza Row.
- The rear elevation of Plaza Row will also benefit from the redefinition of Liberty Street from a somewhat nondescript alley to that of a pedestrian avenue fronting on the new convention center.
What will happen to the existing bus station?
- Without any significant interruption in service, the existing bus station function will be relocated to a new transportation facility on Broadway.
- Also, it will be significantly upgraded to a much safer and rider-friendly facility, and incorporate all other ground transportation in one convenient location, including CDTA, taxis, shuttles, and rental cars.
When do you anticipate breaking ground?
- A groundbreaking date will be determined after the final land is purchased and approval to proceed is granted by New York State.
- The project will take approximately two years to complete. The construction schedules for both the parking facility and the hotel would permit those facilities to open with the convention center in accordance with the recommendations of the HVS International Market Study and good practice.
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