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Feasibility Analysis for Potential Development of New Downtown Convention Facilities in OKC Analysis of Economic, Fiscal and Financial Operating Impacts Page 1

- Executive Summary - Conventions, Sports & Leisure International (“CSL”) conducted a market and facility development feasibility study regarding convention and event facilities in Oklahoma City. This executive summary highlights the key findings of this research. Study Background and Methodology The Cox Business Services Convention Center (“CCC”) opened in November 1972 as the Myriad Convention Center. In 1999, a $63.1 million expansion/renovation of the facility was completed. Currently, the CCC offers a total 153,600 of total sellable space as follows:

Exhibit Space – 100,000 square feet total; includes approximately 81,500 square feet of exhibit space with a 24 feet ceiling height with the remaining 18,500 square feet of space throughout Halls A through E with a ceiling height of 14 feet (current industry standard is 30-35 feet). The exhibit space is privately managed by SMG for the City of Oklahoma City.

Meeting Space – 28,600 square feet of carpeted meeting space was added to the CCC in the 1999 expansion. The meeting space (along with the food and beverage contract) is managed by John Q. Hammons Hotels, Inc. (“Hammons”) which also operates the attached Renaissance Oklahoma City Convention Center Hotel.

Ballroom Space – 25,000 square feet of ballroom space was also added to the CCC in the 1999 expansion. The ballroom space (along with the food and beverage contract) is managed by Hammons.

Parking –a 947-space parking garage is located under the CCC and is separately managed by Republic Parking.

In addition to the space detailed above, the CCC contains an arena with 32,000 square feet of floor space. While this space has been used occasionally for exhibit space and general assembly sessions of larger meetings, the arena is used primarily for athletic events, concerts and family entertainment shows.


The focus of this study is on market demand characteristics that relate to the Oklahoma City convention and tradeshow market, and whether or not these characteristics support new facility development. The study process consisted of detailed research and analysis, including the following components of comprehensive market-specific research:

Local market visit and site tours.

In-person interviews/meetings with Oklahoma City visitor industry representatives.

Analysis of event and financial operating data from existing Oklahoma City convention facilities.

Research and analysis of local market conditions and national and regional trends.

Analysis of data from a total of 13 identified competitive and comparable facilities and markets.

More than 200 completed interviews with meeting planners for state, regional and national conferences, conventions, tradeshows and other events. It is estimated that together these event planners organize in excess of 300 annual events.

The results of this research and the associated project findings are presented within this summary. Local Market Conditions Analysis A community’s hospitality infrastructure, in terms of entertainment, attractions, hotels, restaurants and other such factors, can contribute significantly to the success of a convention center. The marketability of such a facility increases when there is a supporting visitor amenity infrastructure within close proximity. Strengths of the local Oklahoma City market that contribute to the success of a convention center include:

Downtown/Bricktown Development and nearby visitor amenities.

A highly unique and authentic Western and Native American heritage and attraction base.

Recent attraction of the Oklahoma City Thunder NBA franchise.

Large local corporate and government base.

Affordable cost structure.

Supply of visitor attractions, events and other amenities.


Some challenges facing the Oklahoma City market as they relate to functioning as a convention destination include:

Building the brand awareness of Oklahoma City as a convention destination.

Challenges due to the size and quality of the existing Cox Business Services Convention Center.

Limited air accessibility.

Limited supply of convention-quality hotel properties. These characteristics were considered throughout this analysis and are incorporated into the overall study findings and recommendations. Historical Cox Business Services Convention Center Operations Analysis The CCC has hosted a variety of events, including conventions, tradeshows, public/consumer shows, food and beverage functions, meetings and other such events. Understanding utilization levels, event mix and other such characteristics of the facility is important to providing a basis from which to evaluate potential unmet demand for event space in the market. It should be noted that figures associated with recent operations of the CCC are representative of only events utilizing exhibit space at the center and do not include the many smaller events that utilize only meeting or ballroom space (managed by Hammons). Based on our analysis, the following CCC utilization characteristics were noted.

The Center has hosted between 37 and 44 total annual events utilizing exhibit space in recent years, amounting to between 151 and 158 total utilization days (excluding 2005, a year in which the CCC underwent three months of construction preventing potential events from utilizing event space).

Currently, the CCC has between 19 and 41 events per year booked through 2010, representing approximately 91 to 153 utilization days per year. The overall level of consistency shown in recent years and future bookings provides some indication of a mature product with respect to market demand given existing facility and market/destination conditions. Future growth may require some element of change/improvement to the basic convention and destination package.

Historically, exhibit space occupancy levels at the CCC have remained fairly constant, ranging from a low of approximately 28 percent in 2007 to a high of approximately 31 percent in 2003 (when excluding 2005). Taking a variety of factors into consideration, it is appropriate to suggest that past CCC low occupancy levels are a result of factors not directly related to the local and


downtown visitor industry characteristics. These factors could include the following:

o The poor quality of the convention center exhibit space. Virtually all competitive and comparable markets offer space of a significantly higher overall quality.

o The bifurcated management of CCC exhibit space (SMG operated) and meeting/ballroom space (Renaissance Hotel managed). This leads to contracting challenges that are not present in competitive markets.

o The lack of a large headquarter hotel adjacent to the Center.

o The low level of Oklahoma City exposure to the convention planner. Surveys indicate a low level of exposure, likely due to the fact that planners don’t routinely consider Oklahoma City for a number of reasons, not the least of which include facility and hotel limitations.

As noted above, the meeting and ballroom space managed by Hammons hosts several hundred smaller events annually that are not included in the CCC analysis. The majority of these events likely draw from a local or metro area population base, and would not impact the exhibit space occupancy levels.

Industry Characteristics and Trends Analysis The market success of a convention center can be partially attributed to the characteristics of the industry as a whole. To assess the current and future strength of the market with regard to Oklahoma City, it is important to evaluate the industry nationwide. Broad industry changes, characterized by retraction and expansion in convention and tradeshow demand have occurred over the several past decades. The following exhibit highlights trends in industry demand measures, as published by Tradeshow Week.

Tradeshow Week 200 - Convention & Tradeshow Industry Growth

Growth Index

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Net Square FeetExhibiting CompaniesAttendanceReal GDP

Source: Tradeshow Week, 2008; U.S. Department of Commerce, Bureau of Economic Analysis, 2008


The national convention and tradeshow industry experienced a long-term pattern

of steady demand growth, interrupted by the recessions of the early 1990’s and early 2000’s. In both cases, economic conditions were exacerbated by military conflict in the Gulf region. The obvious impacts of September 11, 2001 were dramatic, if short-lived, for the entire convention, tradeshow and hospitality industry. Starting in 2002, the various demand measures picked up, with growth continuing through 2007. The relationship between convention and tradeshow industry growth and changes to Gross National Product are also highlighted.

Today, several conditions are negatively impacting convention and tradeshow activity nationally. First, the overall economic condition has led corporations to consider exactly how they are participating in events. Decisions to reduce the number of personnel sent to industry conventions, and to reduce the number of conventions a company participates in, are commonplace during economic downturns. Secondly, recent and dramatic increases in travel costs and consolidation in airline routes are likely to have an impact on event attendance.

The current economic conditions could result in a period of little overall industry growth through 2009 and likely into 2010. Data presented in the exhibit include projections for real GNP growth in these years, with a downturn projected in 2009, rebounding in 2010. If these projections are generally accurate, it is likely that the convention and tradeshow industry will indeed experience a downturn through at least 2009. Whether or not the negative economic conditions impacting the industry last significantly beyond 2009 or are more transitory will have to be monitored over the coming months and years.

Analysis of Competitive and Comparable Facilities and Markets Our analysis reviewed various physical characteristics and resources of both competitive and comparable facilities and communities. This data helps place the Oklahoma City convention center product within a competitive and comparable market context with respect to facility space, hotel inventory and related features. The exhibit below presents the 13 competitive and comparable markets and facilities analyzed. (An appendix with charts showing Oklahoma City’s competitive position is included with this document.)


Competitive and Comparable Facilities and Markets

City, State Facility

Albuquerque, NM Albuquerque Convention CenterAustin, TX Austin Convention CenterFort Worth, TX Fort Worth Convention CenterIndianapolis, IN Indiana Convention CenterKansas City, MO Kansas City Convention CenterLittle Rock, AR Statehouse Convention CenterLouisville, KY Kentucky International Convention CenterMemphis, TN Memphis Cook Convention CenterMilwaukee, WI Midwest Airlines CenterNashville, TN Gaylord Opryland Resort and Convention CenterNashville, TN Nashville Convention CenterNashville, TN Proposed new Nashville Convention Center Omaha, NE Qwest Center OmahaSalt Lake City, UT Salt Palace Convention CenterTulsa, OK Tulsa Convention Center

In terms of total sellable event space, the facilities range in size from a high of

approximately 737,500 sellable square feet (at the Indiana Convention Center) to approximately 108,100 square feet (at the Statehouse Convention Center in Little Rock). The CCC offers approximately 153,600 square feet of sellable space, and is comparable to such facilities as the existing Nashville Convention Center, Tulsa Convention Center and the Statehouse Convention Center in Arkansas.

Growth is currently planned or underway in two of the compared markets. Nashville is currently planning for a new 525,000-square-foot convention center, which is expected to offer approximately 375,000 square feet of exhibit space, 75 to 100 meeting rooms, two ballrooms and a theater with up to 3,000 seats. The facility could open as early as 2013. Tulsa is expanding their center, adding a total of 52,200 square feet of rentable space, including a 30,000 square foot ballroom and seven new meeting rooms.

Several markets that are smaller than Oklahoma City in terms of population provide prime exhibit space levels at or above 100,000 gross square feet (i.e., Hot Springs, AK, Shreveport, LA, Peoria, IL, Chattanooga, TN, etc.).

The average competitive and/or comparable facility offers approximately 245,700 square feet of total prime exhibit space and 231,400 square feet of contiguous exhibit space. The estimated 81,500 square feet of prime exhibit space at the CCC ranks at the bottom of the competitive and comparable markets reviewed.

There are numerous limiting factors associated with CCC exhibit space with respect to an intrusive column grid (separating Halls A-E from Halls 1-3), low ceiling heights, a lower level of finish than is typical for “prime” exhibit space in the industry, meeting rooms and restrooms accessibility from all areas of the exhibit space, lack of dedicated show offices for use by event planners, lacking


support space and registration/pre-function areas, and insufficient loading dock space.

An average of approximately 55,900 square feet of meeting space is offered among the competitive and comparable facilities analyzed. The approximately 28,600 square feet of meeting space available at the CCC ranks toward the bottom of the set of facilities analyzed. The majority of the meeting space is managed separately from the exhibit space, making it difficult to “package” the product and offer concessions typically available to a large convention.

The largest contiguous ballroom space available among the reviewed facilities averages 33,300 square feet, while the total available ballroom space averages 43,300 square feet. The 25,000-square foot ballroom at the CCC ranks near the bottom of the set of facilities analyzed in terms of both contiguous and total available ballroom space. As with meeting space inventory, the CCC ballroom is managed by John Q. Hammons.

Oklahoma City ranks toward the bottom of the competitive and comparable set of markets reviewed in terms of headquarters hotel inventory proximate to the convention center, with the Renaissance Oklahoma City Convention Center hotel offering 311 rooms adjacent to the CCC. The Sheraton Oklahoma City Hotel, with 396 rooms, is also adjacent to the CCC; however, the Renaissance is considered to be the primary headquarters hotel for the CCC. The average number of rooms available at headquarters hotels in the comparable markets analyzed is approximately 770.

The average number of rooms available at headquarters hotels in the competitive and comparable markets analyzed is approximately 770. However, when only single hotel properties are considered, the average number of rooms per property falls to 525. The newest headquarter hotel to open among competitive and comparable markets is the 607-room Omni Fort Worth Hotel, which opened in January 2009 adjacent to the 340,000-square foot Fort Worth Convention Center.

On average, there are approximately 2,900 total hotel rooms within one-half mile of competitive and comparable markets primary convention facilities. Including existing and planned properties, there are approximately 1,600 existing hotel rooms within one-half mile of the CCC, which ranks tenth among the competitive and comparable set of markets reviewed. The limited hotel rooms proximate to the CCC is a competitive disadvantage when looking at similar national and regional facilities. Emphasizing this point is the fact that hotel properties will typically commit, on average, approximately 70 percent or less of their total inventory for non-local groups and events. Therefore, only an estimated 1,200 hotel rooms within one-half mile of the CCC may be available for large national or regional events.

The average per-diem travel-related costs approximate $127 daily on hotel room rental, $85 daily on car rental and $88 per day purchasing food in the competitive and comparable markets reviewed. The total estimated per-diem travel-related costs in Oklahoma City approximate $120 daily on hotel room rental, $70 daily on car rental and


$79 per day purchasing food, below the average of the markets reviewed ($270 daily compared to an average daily per diem of $299) Market Demand Analysis To form a basis for the market demand analysis, detailed surveys were completed with meeting planners within various key segments that represent the existing and potential event market for Oklahoma City. Telephone interviews were completed with state and regional organizations, and with convention and tradeshow event planners throughout the United States; and internet-based surveys were completed with event planners with a history of utilizing event space at the CCC to evaluate current perceptions of Oklahoma City as an event destination and gather opinions as to the future of the industry overall among the broader event market. Based on these interviews, the following key findings were noted:

National Organizations

Event representatives were asked to rate Oklahoma City and the competitive and comparable markets in terms of their ability to accommodate a successful event, and on the overall appeal and delegate perception of the market. Those questioned were asked to rate each market on a scale of one through five, with one representing the least desirable rating and five representing the most desirable rating. As shown below, Oklahoma City’s rating of 2.2 was in the bottom one-third of the competitive and comparable set, above only Tulsa (2.03 rating), Omaha (1.81 rating) and Little Rock (1.70 rating). The data suggest that although Oklahoma City ranks above several of the comparable regional markets (with the exception of Austin), it is either not well-known or well-received on the national level as a potential destination for events.

Approximately 18 percent of event planners from national organizations indicated

a potential interest in utilizing Oklahoma City convention facilities for a future event (indicating that they would “definitely”, “likely”, or “possibly” utilize an Oklahoma City facility). A significant percentage of this positive interest (13 percent) can be viewed as “tentative” interest (i.e. those that indicated “possibly” hold an event in Oklahoma City, rather than “likely” or “definitely”). The response levels certainly reflect a lack of exposure of Oklahoma City to the national meeting planner community. In addition to a relatively low marketing budget, there are several limitations to the Oklahoma City convention package (such as those related to the CCC and its space offerings, a relative lack of downtown hotel room supply and retail and entertainment options) that likely prevent national meeting planners from considering the destination.

The overall positive response rate measured as part of the study was eight percentage points higher than the positive response rate generated in a 2002 study of the Oklahoma City convention market. The data indicates the beginning of a


shift in perception by national organizations toward the Oklahoma City destination market. The inclusion of the AT&T Bricktown Ballpark, the Bricktown Canal, the Oklahoma Spirit Trolley System, the Civic Center Music Hall, the new NBA franchise and related Ford Center improvements, and other MAPS projects may be having an effect on the perception of Oklahoma City as a destination by national organization meeting and event planners.

The average national convention or tradeshow event with a potential interest in Oklahoma City requires approximately 94,400 square feet of exhibit space. As discussed, the CCC currently offers 100,000 square feet of exhibit space, of which approximately 81,500 square feet provides a 24.5-foot ceiling height and is separated by an intrusive column grid from the remaining 18,500 square feet of space located in Halls A-E (with 14-foot ceilings). The 81,500 square feet available at the CCC is estimated to accommodate slightly more than 65 percent of the demand from national conventions and tradeshows with a potential interest in rotating future events to Oklahoma City and just over 45 percent of the demand from the entire survey sample.

In general, a facility should be sized to accommodate at least 90 percent of potential demand. This sizing level allows for accommodating multiple overlapping events, and allows for future growth in space needs. In fact, the majority of event usage would be of a size allowing for multiple overlapping events to take place at the facility, which would in turn allow for a more consistent daily distribution of room night generation. At a 90 percent capture, approximately 160,000 square feet of exhibit space would be needed given survey-based demand estimates. Further industry growth could increase this space total, and should be considered when sizing any new facility development.

On average, national organizations expressing a potential interest in rotating

future events to Oklahoma City require approximately 13,000 square feet of ballroom space. A ballroom capacity at 30,000 square feet, near the comparable/competitive facility average, would accommodate between 90 and 95 percent of the potential national event market for Oklahoma City.

State and Regional Organizations

Approximately 57 percent of event planners from state and regional organizations indicated a potential interest in utilizing Oklahoma City convention facilities for a future event (indicating that they would “definitely”, “likely”, or “possibly” utilize an Oklahoma City facility). Of this positive interest, approximately 23 percent indicated that their group would “definitely use” an Oklahoma City event facility, assuming the facility, hotel package and other ancillary characteristics of the area met the needs of their respective event(s).

It is estimated that the current level of exhibit space at the CCC (approximately 100,000 square feet) would satisfy all state and regional organization demand for


exhibit space and the estimated 81,500 square feet of prime exhibit space would satisfy over 90 percent of the state and regional organization market.

The average state and regional organization event with a positive interest in Oklahoma City convention facilities generates usage of approximately 8,700 square feet of ballroom space. Currently, the estimated 25,000-square foot ballroom at the CCC (managed by Hammons) accommodates nearly 95 percent of the potential state and regional event market and is perhaps able to serve the ballroom needs of multiple concurrent state and regional events.

The average state and regional organization event with a positive interest in Oklahoma City convention facilities attracts approximately 1,300 delegates and 200 total exhibitors.

The average state and regional organization expressing a potential interest in rotating a future event to Oklahoma City requires approximately 310 hotel rooms on the peak night(s) of their event. Approximately 90 percent of the potential state and regional organization market consists of events utilizing 520 committable hotel rooms or fewer.

Current and Past CCC Users

Approximately 88 percent of current and past users of the CCC indicated that they will “definitely”, “likely” or “possibly” consider Oklahoma City as a potential host destination for their event(s) in the future. Nearly half of this positive response rate (approximately 43 percent of all respondents) indicated that they would definitely return to the CCC in the future.

Approximately 41 percent of respondents indicated that their event either currently needs or will need in the immediate future additional exhibit, meeting and/or ballroom space in order to continue utilizing the CCC.

If their recommended changes were made to the CCC, approximately 67 percent of respondents could potentially increase their usage of the facility, either through larger or more frequent events.

In addition to an overall desire for additional event space, several comments were noted with regard to limitations of existing CCC space. A sample of such verbatim comments is presented below.

o “Consider updating the hallway space, so the transition between Arena space

and Renaissance space is not so drastic.”

o “Better space for exhibitors in the hallways, or vendors to sell items during an event.”

o “You can only have one show at a time in the exhibit hall space partially because there are only two areas of overhead docks.”


o “The Cox is tired and needs a face lift...particularly the elevators, restrooms, arena, exhibit hall and the public space/foyers adjoining the space. It needs an updated look so that it meets the same lively, exciting and cosmopolitan appearance of Bricktown.”

o “The registration space could be bigger. We have quite a large number of people register for our event and we fill the current registration area.”

Market Supportable Building Program Analysis Developing an estimate of the convention facility that can be supported by the market is tied closely to unique local characteristics as they relate to the convention and visitors industry. To assess these local market characteristics, research included an analysis of local hotel, entertainment and attraction conditions, industry trends and characteristics, competitive and comparable facilities and markets, and market demand characteristics unique to Oklahoma City. Findings and recommendations for specific facility and hotel components are: Exhibit Space To accommodate the largest majority of the national convention market potential, approximately 200,000 square feet of prime exhibit space would be required. This is based on current space needs as described by event planners and summarized in the market demand section of this report. The exhibit space needs of virtually all state and regional event potential could be accommodated by a facility of this size. This amount of contiguous prime exhibit space would place a new Oklahoma City Convention Center above the 185,500 square foot median exhibit space offered by the competitive and comparable facility set, and below the 231,400 square foot average of this facility set. As the exposure of the Oklahoma City market to event planners increases, consideration of the market by event planners may also increase. Therefore, future convention center planning should take into consideration the potential for future expansion. For general planning purposes, convention center expansions tend to target roughly a 50 percent increase in space, however each market is unique and the actual expansion space supported can vary widely on a market to market basis. If rather than a phased approach to facility development, a full build out (to 300,000 square feet of exhibit space) were pursued, the larger venue would likely operate at very low occupancy levels for an extended period of time. However, there would also be construction cost efficiencies with the larger construction as opposed to two-phased approach. Meeting Space


Competitive and comparable facilities offer an average of .21 square feet of meeting space for each square foot of exhibit space. The CCC currently offers 0.29 square feet of meeting to exhibit space ratio when including the space managed by Hammons. Meeting space in recently developed or expanded convention centers tends to yield higher meeting to exhibit space ratios. For planning purposes, a ratio of 0.25 is recommended, yielding 50,000 square feet of meeting space associated with a 200,000-square foot exhibit hall. This level of meeting space will allow the Center to accommodate large events with significant space needs, as well as multiple overlapping events, each of which have more typical meeting space needs. Ballroom/Multi-Use Space The average contiguous ballroom space in the facilities reviewed is 33,300 square feet. Our survey research of event planner characteristics specific to the Oklahoma City market indicates that 30,000 square feet of contiguous, yet divisible ballroom space could accommodate between 90 and 95 percent of the current national event potential, and virtually all of the state and regional event demand. For planning purposes, we recommend that the minimum ballroom square footage in a new center approximate 35,000 square feet (designed in appropriate length/width proportions) to allow for potential future increases in space needs. Assuming a ratio of 15 square feet of space per person, a ballroom of this size could accommodate two overlapping banquets of nearly 1,200 people, or a single function at approximately 2,300 attendees. Over the past ten years, convention center expansions have resulted in significant increases in ballroom space. In fact, the ballroom component in convention center expansions has increased at a significantly greater percentage compared to exhibit and meeting space. In addition, ballroom space is increasingly used to accommodate a wider variety of events such as events such as food and beverage functions, general assemblies, product demonstrations, light exhibits, speaking engagements, etc. Recognizing these trends, ballroom space square footage levels of more than 35,000, potentially up to 50,000 square feet, could be considered as market supportable. Headquarter Hotel As clearly defined in the Market Demand Analysis, a new headquarter hotel, offering typical three and four star amenities, will be needed to attract desirable levels of convention, tradeshow and meeting event potential unique to Oklahoma City. Based on market survey research, competitive/comparable market analysis and the recommended building program should a new convention center be developed, the headquarter hotel project should have the following characteristics:

Room Count – The total minimum number of sleeping rooms and suites should approximate 650. Beyond simply offering the physical room inventory, the public sector should negotiate with the hotel operator for a Room Block Agreement stipulating that a large percentage of the sleeping rooms in the hotel (often at least 80 percent) are available for the convention and visitors bureau to use in accommodating events at the convention center.


Meeting/Ballroom Space –For purposes of this analysis, we recommend a target of 50,000 square feet of total sellable meeting/ballroom space in a new headquarter hotel (in addition to the convention center space), approximately 77 square feet per room.

Hotel Financing – The costs to develop headquarter hotels are significant. There are no examples nationwide of a fully privately-developed convention center headquarter hotel in at least the last five years. Two possible financing scenarios include:

(1) A public sector entity can provide financial subsidies (tax increment

financing, public sector construction of parking or other infrastructure, land donation, cash contributions) to a private developer to ensure that the developer can generate a necessary return on investment.

(2) A public sector entity can form a corporation or authority to issue tax exempt debt for the project, typically at rates lower than those available to a private developer. The majority of headquarter hotels funded over the past five years have used this method.

The analysis presented above highlights the basic convention center and hotel building program elements that should be considered. We have presented program estimates for both a Phase I convention center development (based on what is currently supported in the market) and a Long Range/Expanded convention center development scenario that could also be pursued. The following chart presents a summary of these characteristics.

Summary of Convention Center Program Recommendations

Current Phase 1 Expanded Prime Exhibit Space 81,500 sf 200,000 sf 300,000 sf Meeting Space 28,600 sf 50,000 sf 75,000 sf Ballroom/Multi-use Space 25,000 sf 35,000 sf 50,000 sf

Total Sellable Space 153,600 sf 285,000 sf 425,000 sf Total Building Space 1,000,000 sf 570,000 sf 850,000 sf

Headquarter Hotel Rooms 311 rooms 650 rooms 650 rooms Hotel Meeting/Ballroom Space 0 50,000 sf 50,000 sf

As the project moves forward, there will be site, funding and other items that may necessitate the modification to the target program levels. Careful consideration of the impact on market capture of any variation of the program targets should be given.


Analysis of Economic, Fiscal and Financial Operating Impacts Our analysis of estimated economic and fiscal impacts and financial operations assumes completion of the Phase One program, and an emphasis on attracting and booking events to a potential new convention center in Oklahoma City that will serve to maximize economic and fiscal impacts to the community. The following exhibit summarizes the overall economic effects associated with potential event activity assumed to take place under the recommended development scenario. It should be noted that figures associated with the existing CCC are representative of only events utilizing exhibit space at the center and do not include the many smaller events that utilize only meeting or ballroom space. Nominal additional impact would be realized from smaller events, likely with a limited non-local attendee base.

Estimated Annual Economic Impacts Upon Stabilization of Operations (in 2008 Dollars)

Existing Cox Center – $16,724,000Recommended Development Scenario – $45,566,000

Existing Cox Center – $28,643,000Recommended Scenario – $78,042,000

Total Direct Spending

Total Economic Impact Salaries/Wages Employment

Existing Cox Center – $9,923,000Recommended Scenario – $27,023,000

Existing Cox Center – 412Recommended Scenario – 1,121

The annual economic impact (total direct and secondary spending) at a new downtown convention facility is estimated to total more than $78 million under the recommended Phase One program, compared to less than $29 million for the existing Cox Center. The premium is largely attributed to the ability to attract a greater number and proportion of high-impact conventions and tradeshows.

Total salaries and wages associated with new convention center development are estimated at $27 million annually, while full and part-time employment levels supported by new center operations could approach 1,121 total primary and secondary positions. The estimated annual tax impact (including state and local sales and hotel/motel taxes) of the Cox Center has averaged $1.83 million over the past three years. Given the event levels and associated impacts estimated to take place in a new convention center development, total tax collections could increase to nearly $5 million during a stabilized year of operations.


o The State of Oklahoma is the primary beneficiary of tax collections. It is estimated that a new center could generate State tax collections of $1.9 million annually.

o In recent years, the Cox Center has been responsible for generating an estimated average of $592,000 annually in city sales tax receipts; and hotel occupancy taxes totaling $212,000 used for State Fairgrounds improvements, $141,000 used for the Oklahoma City Convention and Visitors Bureau and $35,000 for sponsoring special events. It is estimated that the operations of a new convention center could increase annual tax collections in these specific areas to approximately $1.6 million in city sales tax receipts, $580,000 in revenue for State Fairgrounds improvements, $386,000 in funding for the OCCVB and $97,000 to help sponsor special events.








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