COLUMBUS -- Initial results of a study detailing the feasibility of constructing a regional convention and event center at the Platte County Agricultural Park was recently presented to the 15-member Platte County Agricultural Society board.
While the project is still years from fruition -- with some adjustments to be made to the preliminary plan -- the idea could prove to be a successful revenue generator for Ag Park.
Loren Kuchera, director of the Nebraska Business Development Center, in Wayne, stressed that the preliminary plan would be feasible only if it included an on-site hotel/motel with an enclosed walk-way connecting the convention/event and lodging facilities.
“As we go forward from here, it’s important for the board to understand that these projections are based on the assumption that there will be a hotel attached with enclosed walk-way,” Kuchera said. “In looking at this further, I’m convinced that the feasibility of any event center without a hotel attached would present a real concern. Without a hotel/motel on-site booking events could be a serious problem.”
Kuchera alluded to a local group that is potentially interested in constructing a hotel/motel on the Ag Park grounds, but did not offer the names of the individuals or the group.
A recommendation presented to the board in the fall of 2005 by The Clark Enersen Partners firm identified the need for renovation of the existing exhibit hall into a more “flexible space.”
The flexibility sought would be accomplished by remodeling and adding partitions to the current facility. The addition of partitions would make it possible to divide the area and provide space for multiple events to be held simultaneously.
The initial plan calls for another 100-foot by 160-foot addition to be added to the west end of the grandstand area with partitions that would make possible a variety of space configurations.
Kuchera said if built today the estimated cost for the proposed event center would be about $2 million with an additional $135,000 per year in operating costs.
That estimated price tag would provide for a total capacity of 940 in a banquet setting, 700 in a classroom setting and 2,010 in a theater setting.
Kuchera made it clear the proposed project is only in the most elementary planning stage and the beginning of construction is still several years in the future.
Based on preliminary projections and three broadly outlined financing plans, Kuchera estimated the new facility could break even in its third year of operation.
He identified about 200 trade and professional associations in the state of which 125 hold at least one annual conference or convention outside the state’s metro areas each year. He said another 35-50 conferences are held each year that are not connected to the trade associations.
“A secondary market of wedding receptions, company functions and holiday parties would not generate significant revenue into the community, but would reduce some current ‘leakage’ and create revenue that could be applied to overhead expenses,” Kuchera said.
He outlined as advantages, the facts this project would be the newest, most modern regional event facility in the area and Columbus is easily accessible by highway and is within a short distance from larger metro areas.
He said the biggest disadvantage at this early stage is that there is no plan for an on-site hotel/motel in the plan.
Kuchera said that based on national averages and adjusting for local motel rates a convention lasting two days, ending in a banquet with 100 attendees could have an economic impact of $43,800 in the community. He said 16 of these events would result in an economic impact of $700,800 annually.
“I personally feel this project has some legs on it,” Kuchera said. “The potential for a successful project is especially good if an on-site hotel/motel comes with it.”
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