THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, July 15, 1994 TAG: 9407180211
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY LANE DeGREGORY, STAFF WRITER
DATELINE: KILL DEVIL HILLS LENGTH: Long : 105 lines
For about $1.5 million a year, the Outer Banks could support a large, multi-use convention center, an Atlanta-based consultant said Thursday.
Now, elected officials and residents will have to decide whether the project's expected income would offset the $15 million price tag plus an estimated $332,000 to subsidize annual operating expenses.
``The Outer Banks appeals to many groups that cannot be served by the islands' current facilities,'' said Bonnie Finne of Finne & Associates economic consultants. ``Tourism is not just a part of your economy. It's almost all of your economy.
``You have sufficient lodging and recreation activities,'' Finne told about 60 barrier island residents Thursday. ``But you really lack room for a large convention or activity in one location.''
Commissioned with $52,000 of Dare County tourism tax revenue, Finne's five-month study was completed last week. Local politicians, merchants and residents heard the results for the first time Thursday afternoon during an hour-long presentation sponsored by the Dare County Tourism Board.
``Absolutely no action has been taken to build, acquire land for, or begin this project. And we will not recommend today that we do or don't have a center,'' Tourism Board Chairman Robert Middlebrooks told the group gathered in this beach town's meeting room.
``The Tourism Board just wanted to present an unbiased, honest opinion. ... Now, we'll all go away and reflect on the study. Whatever is supposed to happen will happen.''
According to the 132-page study, the Outer Banks Convention Center should be located somewhere between the Wright Memorial Bridge and the Washington Baum Bridge, preferably between mileposts 8 and 11 or mileposts 14 and 17. The 135,000-square-foot-facility would require a 10-15 acre site and cost between $15 and $17 million to build.
Projected income from the project is $6.4 million in local expenditures. Using a multiplier effect of outside dollars recycled in the local economy, it is $13.2 million per year.
Annual operating expenses, however, would exceed the center's revenue by about $332,000. That means the taxpayers - or a private group - would have to subsidize the project. Debt service on a loan or bond would be $1.1 to $1.3 million a year.
``Virtually no multi-use center generates enough revenue to cover their expenses,'' said Finne.
Tourism officials would not speculate on who would foot the bill. Locals and elected officials will have to talk about it, they said. But Tourism Board Vice Chairman Warren Judge added, ``If it was feasible to do it privately, I would've thought someone would've done it by now already.''
The prototype Outer Banks convention center which Finne described would contain a 1,000-seat auditorium, a 45,000-square-foot exhibit/banquet room and at least 20 individual meeting rooms.
Big-name entertainers could perform on the stage. State and national groups could host their conventions in the meeting rooms. Trade shows could come to the exhibition area. Art classes could be taught in the afternoons. Business expos could flock to the facility.
And about 175,000 people would travel to the remote barrier island beaches - where 25,000 residents live year-round.
``The primary goal is to increase your shoulder-season business,'' Finne told the tourism folks.
The convention center would not have a restaurant - although it would have extensive banquet facilities and some concessions. Local restaurants could cater the meals. ``One of the first recommendations we got when we began this tourism board in 1992 was to build a multi-use convention facility,'' Middlebrooks said.
The tourist bureau already is setting aside seed money to build a convention center. But that money could go toward other projects if the people reject this plan. Tourism officials promised to take a stand on the proposed convention center by early November.
``But the tourism board won't make the final decision,'' Dare County Commissioner Robert Williams said. ``The people will.''
Most Chamber of Commerce, town, restaurant, hotel and other officials present Thursday seemed excited with Finne's figures.
But tourist Jim Forsythe of New Jersey's Boonton township said such a facility would destroy the very thing he was vacationing to find.
``Don't do it. I think it would ruin the Banks,'' said Forsythe, who was touring Manteo's waterfront Thursday afternoon. ``I think it's too fragile. It's getting too commercial. They're pushing the limit right now.'' ILLUSTRATION: Graphic
CONVENTION CENTER STUDY
On Thursday, the Dare County Tourism Board revealed the results
of a $52,000 feasibility study for an Outer Banks multi-use
convention center. According to the study, which was funded with
tourism tax revenue, the barrier islands could support a large,
year-round facility. But there would be an annual price tag.
According to the study, an Outer Banks convention center would:
Cost between $15 and $17 million to build.
Have annual debt service of $1.1 to $1.3 million.
Run on a deficit of about $332,000, with growth expected.
Pump $6.4 million a year into the economy.
Draw more than 175,000 people into the area annually.
Contain 135,000 square feet of space.
Include a 1,000-seat auditorium.
Hold at least 20 meeting rooms.
Be able to accommodate groups of up to 2,000 people.
Be built between the Wright Memorial Bridge and Whalebone
Junction.
by CNB