Pennsylvania CC Buys Land for Expansion

PHILADELPHIA—In a desire to make an impression at just the right moment, Philadelphia Convention & Visitors Bureau officials announced the purchase of the first of 27 parcels for an expansion of the Pennsylvania Convention Center just as the annual meeting of the Professional Convention Management Assn. got underway at the center.

"Meeting planners know nothing happens until there's a shovel in the ground," said Jack Ferguson, vice president of the Philadelphia CVB's convention division.

While approval for a 392,000 square foot, $632 million expansion came three months ago, it wasn't until the PCMA meeting's Jan. 9 opening session that it was known that the first $5 million had been spent on a 12th Street property west of the center now occupied by the Pennsylvania Academy of Fine Arts.

"This is significant because it's the biggest (parcel)," Ferguson said.

Plus, he said, it's the kind of solid information he can use as he begins to ask tradeshow managers and meeting planners to commit to future space.

"They've all heard from the politicians before," Ferguson said, "but until you start moving earth, everything's in limbo."

Construction is expected to begin later this year and be completed by mid-2009. Once in place, the center will have 700,000 sq. ft. of exhibit space; 93,000 sq. ft. of ballroom space; and 162,000 sq. ft. of meeting space — making it larger than its regional competitors in Boston, New York City and Washington, D.C.

What's more, said Sarah Hines, the Philadelphia CVB's senior manager for marketing communications, the city has more than 10,000 rooms in 33 hotels nearby. "We already have the walkable city," she said. "This just adds to the package."

The land purchase is the latest development in a 3-year-long process that has included a political battle that led to state approval of funding for the expansion; a customer satisfaction agreement intended to resolve the center's labor problems; and the hiring of new center management, including COO Dittie Guise, formerly general manager of the Greater Columbus (Ohio) Convention Center.

Before 2003, "In many instances, people weren't thinking about the center and people got their eyes off the ball," said Philadelphia City Councilman Michael Nutter, who is also board chairman of the Pennsylvania Convention Center Authority. "But I do know and understand the value of tradeshows to Philadelphia and the region."

According to the Philadelphia CVB, the tourism industry employs 50,000 people in the city and 100,000 in the greater metropolitan area.

"That's a lot of jobs," Nutter said.

The center's largest 2005 tradeshow, AIIM ON DEMAND, with 247,000 sq. ft. of exhibit space, has signed a multi-year contract and, according to Ferguson, will be able to stay in Philadelphia as it grows.

The impending groundbreaking in Philadelphia comes a few short years after Boston and Washington, D.C., completed expansions and just as expansion plans gather momentum at New York's Jacob K. Javits Convention Center. Convention center hotel projects have also been announced in New York, Washington and Baltimore.

"That's right," Ferguson said. "Our competitive set has built new buildings too, so we have to keep up. Otherwise, you slide back into the 'It's a nice city, but it's not for me' mode."