RSA interested in Convention Center
Mayor says Bronner might also be interested in helping renovate Civic Center
Friday, August 06, 2004
By GEORGE TALBOT
Business Reporter
The Retirement Systems of Alabama has asked Mobile Mayor Mike Dow to consider allowing it to manage the Arthur R. Outlaw Mobile Convention Center, according to David Bronner, RSA's chief executive officer.
With over $200 million now invested downtown, RSA apparently wants more control over the city's recruitment of tourists, conventions and other events.
"Nothing is worse than if we go off and book a major event, and then we find out later that the Convention Center has this little piddly deal that throws the whole thing off," Bronner said. "It just works better if we're all on the same page."
Dow said Bronner, who oversees the $24 billion state employee pension fund, might also be interested in partnering with the city to renovate the 40-year-old Mobile Civic Center.
"We are having discussions with them as far as managing the Convention Center and other properties," said Dow. "Our concern is how to maximize these facilities and create a larger tourist and convention industry here. I'm completely open to the possibilities."
Both the Convention Center, which opened to the pub lic in 1993, and the Civic Center, which opened in 1964, are owned by the city and managed by Philadelphia-based SMG Management.
Dow said RSA's proposal doesn't necessarily mean that SMG -- which is contracted with the city to manage the Civic Center until 2006 and the Convention Center until 2007 -- would be squeezed out.
"I think there's a role for each to play," Dow said Thursday. "Right now, I'm just trying to get everyone together and see if we can find that ideal arrangement."
RSA is spending $162 million to build a downtown office tower -- the tallest in the state -- and renovate the adjacent Battle House hotel. The Montgomery-based pension fund last month bought the Riverview Hotel in downtown Mobile, formerly operated under the Adam's Mark flag, for $11.8 million, and began a $17 million upgrade of the 377-room hotel.
An RSA affiliate, Alabama Real Estate Holdings Inc., is building the city's $20 million cruise terminal on the Mobile River and will manage the terminal once construction is completed in the fall.
Bronner said his interest in the Convention Center, a downtown landmark and sometime source of controversy over its $52 million construction price, is natural considering his hotel investments in the area. In addition to the Battle House and the Riverview, RSA also owns and operates the historic Grand Hotel in Point Clear.
RSA has negotiated deals in Montgomery and Florence to manage convention centers adjacent to RSA properties. The pension fund is spending $47 million to build a hotel in downtown Montgomery, expected to be completed by Nov. 1, and agreed last year to take over and rebuild the Florence Conference Center. RSA's Shoals Golf Resort, Spa & Conference Center in Florence is scheduled to open in April 2005.
"What is going on is that we're showing the folks in Mobile what kind of deal we're doing with Florence and what kind of deal we're doing with Montgomery and seeing if they have any interest. And those talks are going on now," Bronner said. "It's just something that, if it makes sense to them, fine, and if it doesn't make sense, then we won't do it."
Dow said he has had informal discussions regarding both the Convention Center and the Civic Center with Ed Kulik, president of Alabama Real Estate Holdings. Kulik did not return several messages from the Register.
"I had a conversation with (Kulik) recently about the fact that our Civic Center is tired and dated and is not a state-of-the-art concert hall," Dow said. "And his response was, 'Maybe we can help you with that.'"
Dow said he specifically would like to expand the 10,000-seat arena by adding at least 2,000 seats and install a higher-quality sound system, improvements that could lure big-name concerts.
"We cannot compete with other Gulf Coast facilities with its current configuration and limited seating," Dow said. "It needs a major overhaul. Can RSA help us with this? Absolutely."
SMG officials said they were not aware of any negotiations with RSA, adding that they were committed to managing the two properties. Jay Haberman, the Civic Center's general manager, said SMG has an option to extend the contract for another five years when the current deal expires in 2006.
"I think, and the city thinks, that we've done a great job and see no reason to make a change," said Robert Brazier, general manager of the Convention Center. "On the other hand, (Bronner) is doing great things in the city, and we're glad to assist him however we can."
Allowing RSA to recruit conventions could have implications for the Mobile Bay Area Convention and Visitors Bureau, which traditionally handles long-range bookings at the Convention Center.
"Usually, the Bureau looks at events for 18 months and out, and SMG does the short-term stuff," said Leon Maisel, president of the Convention and Visitors Bureau.
Maisel said he had not been contacted by Bronner or Dow regarding their negotiations.
"It's kind of out of our hands," he said.
