The Metropolitan Pier and Exposition Authority (MPEA) in Chicago has approved the sale of up to $231 million in refunding bonds for the McCormick Place Expansion Project. This project aims to upgrade the Lakeside Center building and renovate the guest rooms at the Hyatt Regency McCormick. The Series 2024A and Series 2024B bonds are set to price the week of July 22. The MPEA collected $154.4 million in taxes in 2020, but due to the pandemic, collection decreased to $47.58 million in 2021. However, with a rebound in 2022 and 2023, the MPEA has seen a strong recovery, with operating revenue exceeding budget projections.
In contrast, the America’s Center convention center in downtown St. Louis has faced challenges in its expansion efforts. Delays and cost overruns have plagued the project, leading to a request for an additional $20 million in funding from Explore St. Louis, the agency overseeing the project. The delays have impacted convention bookings and surrounding hotels. Furthermore, political wrangling between the St. Louis County executive and county council has hindered progress on the expansion project, causing further delays and escalating costs.
The Duke Energy Convention Center in Cincinnati is undergoing a $400 million renovation, financed primarily through tax-exempt revenue bonds. The project includes renovations to the hotel and convention center, with three series of revenue and refunding bonds issued by the Port of Greater Cincinnati Development Authority. Moody’s Ratings and S&P have provided ratings for the bonds, reflecting a stable outlook. The renovation plans, in the works since 2019, faced challenges during the COVID-19 pandemic but have since moved forward with financing secured and construction scheduled to begin soon.
These examples highlight the varied experiences of regional convention centers in upgrading and renovating their facilities. While some, like Chicago’s McCormick Place, have seen success in their expansion projects and revenue generation, others, such as St. Louis’s America’s Center, have faced setbacks due to delays and funding issues. The importance of these convention centers as economic drivers for their respective regions underscores the need for effective planning, financial management, and stakeholder collaboration to ensure successful outcomes. As cities continue to compete for convention business, investing in state-of-the-art facilities and amenities becomes essential for attracting attendees and generating economic impact.