The Metropolitan Pier and Exposition Authority in Chicago is planning to sell up to $231 million of McCormick Place Expansion Project refunding bonds for upgrades to the Lakeside Center building and renovations to the Hyatt Regency McCormick’s guest rooms. Despite the financial challenges posed by the pandemic, the MPEA is moving forward with these projects, with bond sales expected to take place in July.
The MPEA has reported a strong recovery from the pandemic, with operating revenue exceeding expectations in fiscal year 2023. The authority collected $168.42 million in tax revenues, a significant increase from the previous year. McCormick Place delivered $2.01 billion in economic impact for the city and state, highlighting its importance as a major convention center in the Midwest.
Recent renovations at the Hyatt Regency, funded through the MPEA’s capital budget, demonstrate the authority’s commitment to improving the overall experience for visitors. The upgrades to the ballroom, corridors, and conference center aim to enhance the facilities and attract more events to the venue.
While McCormick Place has seen success in its post-pandemic recovery, other convention centers in the Midwest have encountered obstacles. The America’s Center convention center in St. Louis has faced delays and cost overruns in its expansion efforts, leading to additional funding requests from the city. Political wrangling and administrative issues have further complicated the project, highlighting the challenges of large-scale renovations in public facilities.
In Cincinnati, the Duke Energy Convention Center is undergoing a $400 million renovation financed by tax-exempt revenue bonds. The project, spearheaded by the Port of Greater Cincinnati Development Authority, aims to enhance the hotel and convention center to attract more visitors to the region. Despite the challenges posed by the pandemic, the renovations are moving forward with approval from rating agencies and stable outlooks for the bonds.
The Cincinnati Center City Development Corp., overseeing the convention center renovations, has navigated interest rate and escalation risks to ensure the project’s success. By working closely with investment banking teams and construction managers, the project has secured financing and is set to begin construction in July. The revitalization of the Cincinnati convention center is essential to the city and Hamilton County, positioning them as competitive players in the convention industry.
Investments and renovations in Midwestern convention centers demonstrate a commitment to economic growth and tourism in the region. Despite challenges and setbacks, authorities are forging ahead with projects to enhance facilities and attract visitors. By addressing financial hurdles and navigating construction complexities, these convention centers are poised for success in a post-pandemic world.