Phoenix City Council to consider hiring a consultant to create an entertainment district brand near convention center

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Christina Estes/KJZZ

The Worldwide Franchise Affiliation held its annual conference in Phoenix in February 2024.

After a few years of including residents, eating places and high-rises in downtown Phoenix, leaders are envisioning the subsequent wave of financial improvement. And it’ll seemingly embody a conference middle growth and a brand new leisure district.

In February, greater than 3,500 folks attended the Worldwide Franchise Affiliation’s conference. The group final visited Phoenix in 2019.

“And we have seen a whole lot of change downtown within the metropolis. It is actually, actually nice,” mentioned Matt Haller, IFM president and CEO. “The restaurant scene right here has been unbelievable. The hospitality employees at our accommodations within the conference middle has been actually nice.”

It’s estimated nearly 2,000 businesses operate in the downtown area, typically from Seventh Road to Seventh Avenue and Jackson Road to McDowell Street. However some say a key amenity is lacking.

Ron Worth, president and CEO of Go to Phoenix, the group that markets Phoenix as a conference vacation spot, mentioned downtown wants one other resort providing between 800 and 1,200 rooms. 

“I at all times allude to once I first bought right here three years in the past, I feel it was New York Life that was seeking to relocate certainly one of their largest conventions, they usually wished to come back right here so unhealthy, and for us to host New York Life, we would wish to place them in 15 accommodations across the metropolis with the intention to accommodate that,” he mentioned.

Christina Estes/KJZZ

A session titled “Tips on how to have interaction ladies veterans” was held on July 24, 2023, on the VFW nationwide conference in Phoenix.

Speak of a brand new resort isn’t new. It was highlighted in a 2019 market study on the convention center. The report additionally beneficial extra assembly rooms, exhibit house and a much bigger ballroom. 

Worth just lately informed council members that different cities are spending large bucks on their conference facilities — LA and Denver are increasing whereas Austin is rebuilding.

“They determined as a metropolis, with the conference enterprise booming, let’s tear down the present Conference Heart all the way down to the bottom and rebuild it. And they also’re taking a look at $1.27 billion improvement and growth, their conference middle. After which, lastly, Dallas did the identical factor,” he mentioned.

As opponents develop or bulldoze to construct new, Phoenix is seeking to up its sport. Xandon Keating with town’s financial improvement division described the concept behind creating an leisure district across the conference middle.  

“After they stroll out of the conference middle. Here is the place you go. Here is the place the enjoyable stuff is. If you’re accomplished along with your conferences for the day and also you need to expertise town,” he mentioned.

The Metropolis Council shall be requested to approve a half 1,000,000 greenback contract for a guide to assist determine, set up and activate an leisure district that will model the realm. Assume San Antonio’s River Stroll, Seattle’s Pike Road and Nashville’s Music Metropolis Heart.

Regardless that an leisure district can be across the conference middle, Christine Mackay, Phoenix’s Financial Improvement director, mentioned it could not be restricted to conventioneers or downtown residents.

“But it surely actually can be to interact all of our residents, not solely in Phoenix, however across the Valley to reimagine downtown,” she mentioned.

“But it surely actually can be to interact all of our residents, not solely in Phoenix, however across the Valley to reimagine downtown.”
— Christine Mackay, Phoenix financial improvement director

Reimagining is one factor, developing with cash to execute is one other. Vice Mayor Debra Stark mentioned she’s dedicated to rising conference enterprise and needs state lawmakers to let cities provide extra tax incentives to builders.

“As a result of we’d like these forms of instruments. We’re competing, as you identified, with all these different cities they usually have these instruments,” she mentioned.

In 2024, Phoenix expects to welcome 304,000 conference attendees who will spend 340,000 nights in accommodations. This yr’s anticipated attendance would be the largest since 2009, which was the primary yr after the conference middle’s growth.

A 2019 examine of conference middle attendees discovered that 87% stay exterior metro Phoenix, with 70% from one other state and 10% from one other nation.

stairs leading to south building

Christina Estes/KJZZ

The South Constructing of the Phoenix Conference Heart.

A 2022 examine by Longwoods Worldwide discovered the enterprise/conference traveler spent a median of $327 in comparison with the common leisure traveler at $211. Along with accommodations, conference enterprise helps caterers, eating places, leisure venues and transportation.

Eric Kerr, vp of Go to Phoenix, mentioned 64% of Phoenicians surveyed suppose the constructive advantages of tourism outweigh the damaging, “And 67% of our residents agreed that we must always proceed to encourage tourism right here, additionally greater than the nationwide common.” 

Increasing the conference middle, including a significant resort, and creating an leisure district can be a large endeavor. Ron Worth mentioned ideally, they need to occur on the similar time.

“We do not need to have a number of development initiatives occurring that’s going to final many, a few years,” he mentioned.

“We do not need to have a number of development initiatives occurring that’s going to final many, a few years.”
— Ron Worth, Go to Phoenix, president and CEO

If the council approves hiring a guide for an leisure district, public enter might be gathered this summer time with a remaining plan prepared earlier than the tip of the yr.

Sheraton Grand Phoenix

Christina Estes/KJZZ

Sheraton Grand Phoenix in downtown Phoenix.

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