1A recent economic-impact study calculated that the three R.I. Convention Center Authority facilities generated more than $738 million from 2009 to 2013. How does that compare with its operating costs during the same period?
If we simply compare the cost of annual debt service, capital improvements and operations to the dollars generated, the comparison is about $5 generated for each $1 expended.
2But year over year RICCA operates at a loss, so why do you think the venture has been worth the cost?
Generally speaking, convention centers and arenas do not generate operating profits from their activities. These facilities are considered economic stimulators and contribute to quality of place and life. Post-convention center development projects are: Courtyard Marriott; Hotel Providence; Providence Place mall; URI’s Shepherds Building; Westin/Omni Hotel expansion; Holiday Inn to Hilton Hotel conversion; the Hampton Inn, the Dean and the Renaissance Providence Hotel. These projects represent hundreds of millions in private investment activity.
3The Republican Policy Group has recently scrutinized RICCA and its finances. What do you say to your critics that say public money is used poorly on the center?
Oversight is good. Criticism given and taken as constructive can yield positive results. It’s also important not to confuse debt service with operating expenses. The facilities are performing well in comparison to similar buildings.
4What was the most telling portion of the economic-impact study to you and why?
In terms of tangibles, the 1,400-plus jobs supported by the facilities and their activities. However, gross dollar spending and economic impact is impressive, especially when you are talking about more than $2 billion since the buildings opened.
5What are your goals at RICCA and how do you plan to accomplish them?
Our goal is to attract and retain events that will create significant benefits for the city and the state. It is also very important that we properly maintain and periodically upgrade the facilities so that they remain competitive and efficient. We will accomplish these goals by working with our management teams, industry partners, community and political leadership on initiatives that will make our facilities and destination stand out. •
