CS&L Conference Center Study
Durango BID Research Projects
The District was formed initially to look at the feasibility of a Conference Center for Durango. After a process which included “Requests for Qualifications” that were sent to various professional research and feasibility firms, the District selected CSL International. http://www.cslintl.com/ Convention, Sports & Leisure (CSL) is located in Minneapolis, MN and the firm is nationally recognized for their work for local governments and communities in the area of conference, educational and sport facilities.
The following is an executive summary and brief review of the CSL research that was completed in fall 2000 for the Durango Business Improvement District.
Durango Conference Center Feasibility
Would an attractive conference facility in Durango attract more business and visitors to Durango?
In 2000, the Durango Conference and Convention Center Board of Directors - now the Durango Business Improvement District (history of BID) - hired experts in the consulting firm, Conventions, Sports & Leisure International (CSL, International) to research the Conference Center feasibility for Durango.
CSL, International Project Assumptions
A Durango, Colorado conference facility would produce positive effects on the local community:
• Generate new economic impact (new sales/hotel tax revenue and new jobs)
• Provide additional option for local and non-local groups to hold events
• Attract interesting new events to Durango
• Reduce the impact of losing events to other communities
What factors did the consultants examine during their review?
1. Market Analysis – Is Durango the right size and type of city to attract people to conferences, corporate meetings, and community events?
2. Industry Trends – What is the current and future strength of the conference and convention market?
3. Comparable Facilities and Markets – Are there comparable competing facilities in the regional market?
4. Economic Impact Analysis– What funding alternatives are available?
What were their findings?
Durango ranks high in terms of community success factors:
• Destination market attractiveness
• Convention quality hotel rooms
• Promotes tourism through Durango Area Chamber Resort (now the Durango Tourism Office, aka DATO)
• Numerous recreation, entertainment, attractions (train, Mesa Verde, etc)
• Proximity to other Albuquerque, Santa Fe, Farmington, Grand Junction
• Limited competitive facilities in the region
Market Analysis
Through a series of interviews with local business leaders, City and Chamber administrators, and hospitality industry representatives, CSL, International conducted an analysis of Durango’s ability as a community to accommodate large numbers of convention and meeting attendees. Summary:
• Community leaders feel positive that a facility would generate revenue and attract visitors to Durango
• Tourism infrastructure is strong!
• Approximately 2,000 hotel rooms (50% convention quality) available
• Limited, small meeting space options (with the exception of the La Plata County Fairgrounds Exhibit Hall)
• Limited air transportation and negative perception of driving to Durango from key Colorado markets
Industry Trends and Characteristics
CSL reviewed the current and future strength of conference, convention and meetings markets and concluded:
• Overall convention and trade show industry reflects stability and annual growth
• There are six groups of meeting types (conventions and trade shows, corporate meetings, SMERF (social, military, educational, religious, and fraternal), public consumer shows, service club meetings, and private banquets and receptions.
• Site selection criteria is influenced by the quality and quantity of moderately priced nearby rooms
• Facilities need technology-related amenities
Comparable and Competitive Facilities and Markets
The competitive environment of the regional area was an important consideration. Fourteen competitive and comparable facilities/communities were analyzed.
• Majority possessed technology-related amenities
• Space available ranged from 226,000 square feet to 7,000 sq. feet
• Convention quality hotel room number analysis ranked Durango near the middle to low end range of the set
• Many communities have dedicated convention and visitors bureaus where Durango uses the Durango Area Chamber Resort (now the Durango Tourism Office) to promote tourism
CSL analyzed the economic impact of the proposed center by:
• Outlining three building program classes based on varying sized exhibit hall space and meeting/ballroom space (20,000 sf to 40,000 sf)
• Performing an analysis of the potential operating results that could be generated
• Investigating different funding alternatives (sales tax, property tax, tax increment)
Feasibility Assessment and Conclusion:
The CSL, International study concluded that a Durango Conference Center facility was viable, but would require an annual operating subsidy. The Conference Center would contribute to the economic health and vitality of the Durango community, and it would increase sales and lodger’s tax collection in the City of Durango. It should be located within walking distance of 300 “convention quality’ hotel rooms, which would likely place the proposed facility in the downtown Durango area.
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