Paso Robles explores economic feasibility of a $26-million conference center
Steve Martin, Michael Bradley and Danna Stroud
New center addresses demand, fosters new business to support hotel growth
– The Paso Robles Event Center, in cooperation with Travel Paso and the City of Paso Robles, is exploring the economic feasibility of a $26+ million conference center to be sited at the Paso Robles Event Center located on Spring and Riverside Streets. The 16th District Agricultural Association known as the Paso Robles Event Center invited Travel Paso and the City of Paso Robles to fully explore the opportunity as part of a unique public, private partnership. Each partner views the conference center as part of their strategic plan and goals aligning common interests.
Building upon the 2017 demand study commissioned by Visit SLO CAL, the task force hired B&D Venues a Brailsford & Dunlavey practice group, that specializes in evaluating investments to advance communities to study the economic feasibility specific to Paso Robles. The 2017 study indicated strong demand for a facility within the region of San Luis Obispo (SLO) County fostering new mid-week bookings and non-peak season visitation.
“The conference center fills a great regional need and creates a new asset for the community, fair attendees, and business,” said Michael Bradley, CEO of the Paso Robles Event Center. “This project aligns with our strategic plan to be economically viable year-round and brings together a unique collaboration among our state agency, city and the private sector to form the ultimate public, private partnership.”
The conference center is designed to meet the needs of meeting planners with a ballroom, meetings rooms, boardroom and a pre-function space. The feasibility study quotes 19,500 SQ FT of usable space, which includes:
- Up to 15,000 square foot ballroom – divisible into three or four separate spaces,
- Six meetings rooms,
- One boardroom and
- One pre-function space
More than 700 hotels rooms are currently located within a half mile of the proposed site, which provides ample accommodations according to event planners.
“With nearly 1,400 new rooms entitled to be built in the next three to five years our lodging capacity is forecasted to nearly double, said Danna Stroud, Executive Director of Travel Paso. The conference center is a unique asset adding new mid-week business during the off-peak season. Conference attendees support the region’s ancillary businesses and often business travelers become leisure visitors creating additional economic benefits. With nearly 1,400 new rooms under consideration to be built in the next three to five years, our lodging capacity is forecasted to nearly double.”
Currently, Paso Robles has 21 hotels with 1,447 total rooms, more than 225 vacation rentals, and three RV Parks. Average daily rates, occupancy and revenue per available room (RevPAR) can vary greatly over a 12-month period. Event planners indicate Wednesday and Thursday as peak conference days with 84-percent of bookings occurring in the fall, winter, and spring to complement the robust summer season.
More than 30-percent of attendees are estimated as non-local. These guests are expected to book 11,500 room nights annually, which will generate $7.35 million in tax income to the City of Paso Robles over the next 30 years. The $26+ million conference center creates 181 full-time jobs during the multi-year construction period and 159 new jobs as part of the estimated $12.5 million annual budget.
A number of studies and action items continue moving forward in 2018 to fully evaluate the feasibility of the project. The task force will move through each milestone to formulate the conference center viability. Once proven to be economically successful the task force expects to begin soliciting construction bids in early 2019 with an anticipated opening of the new conference center in early 2021.
“We are committed to this history-making partnership to expand experiential business opportunities sought by meeting and activity planners nationwide,” said Steve Martin, Paso Robles Mayor. “A number of studies continue to keep our vision moving forward.”
