Mayor  Mark Begich comments
Alaska  Convention & Visitors  Center RFP- news conference
1 pm;  Feb. 23, 2004; Mayor’s Conference Room

Thanks for being here. Today we take a major step toward revitalizing our downtown and growing the economy of our city and state.

I am pleased to announce that after eight months of careful analysis, today we are issuing a Request for Proposals for Phase One of a new Alaska Civic and Convention Center.

Completion of this project will mean millions of dollars to the economy of this city and state, a building boom for our downtown, and good jobs for our residents.

We all know Anchorage is an international destination. This city hosts millions of dollars worth of conventions every year. The economic impact from conventions in Anchorage for 2003 was almost 72 million dollars.

But it could be much more. The truth is we turn away business all the time because we simply have outgrown the current Egan  Convention Center.

Bruce Bustamante, president of the ACVB, will tell you more about the business we don’t get in a few minutes. First, I want to tell you more about the RFP.

The principle underlying this RFP is encouraging private sector innovation. Government’s role is to help create the environment in which the private sector can do what it does best – take risks, be innovative and create jobs.

So in this RFP, you’ll notice that the city is not soliciting for a single location. Rather, we are asking the private sector to propose suitable sites throughout the downtown and Ship Creek area.

As Mayor, I am interested in a creative public/private partnership that will lead to a world class facility, attracting conventions and trade shows year-round and used by local residents.

This is a two-phase process. In the first phase, we are seeking developers to propose a new civic center with a minimum of 50,000 square feet of exhibit space – compared to just 19,000 square feet today at the Egan Center.

The center must be located in the downtown area – roughly bordered by Ship Creek to the north, Gambell Street to the east, 9^th Avenue to the south and L Street to the west.

The proposal must make use of the existing Egan  Center. This can be either part of the new center, or for alternate uses such as retail space, restaurants, offices or something similar. The bottom line is we will not mothball the Egan Center.

We’re also encouraging innovation when it comes to financing the new center. Public funds in the form of an increase in the local hotel/motel bed tax could be available. That current rate is 8 percent and Anchorage voters would have to approve any increase for the new civic center. The RFP anticipates that vote could be held during the state primary election in August. Our goal here is not putting the burden on Anchorage’s property taxpayers.

During the phase I process, we’re looking for developers to assemble a team and submit a proposal by March 22^nd. Then, we move to Phase II. During that process, we will select one or two finalists and ask them to develop a comprehensive, detailed plan of the proposal. That is due in late May.

Some of the other criteria that will be included are enhancing the connectivity of downtown businesses with the new convention center and improving pedestrian and street amenities.

I believe now is the time to proceed on a new Alaska  Civic Center for downtown Anchorage. Anchorage’s economy is generally healthy, with a modest 1.3 percent growth rate predicted for the coming year. With a new civic center, we will inject a new enthusiasm and hundreds and new jobs into a downtown redevelopment.

It is estimated the new center will create 800 new construction jobs and hundreds more co-development jobs. It will help spur additional development, like the long-discussed E Street Corridor improvements, an expansion of the Museum and other improvements.

As the name indicates, it will be Alaska’s Convention and Civic Center, because it benefits all Alaskans to bring business opportunities and conventions here.

Some may ask what’s different now from the last time a new convention was proposed and rejected by voters. First, we will not bring a plan to the voters until they have the full picture. They will know the site location, the full costs and how it will be financed and not on the backs of property taxpayers.

And now, I believe Anchorage voters have more confidence in our future. Every public opinion survey I’ve seen recently shows that a vast majority of Anchorage residents believe the city is headed in the right direction.

I believe we need to adopt the same vision and energy that brought us the other great amenities in our city - our library, museum, performing arts center, accelerated roads, and the Egan  Convention Center. If the advocates of those projects had waited until the time was right, the time would have passed us by.

In that same vein, the time to move forward on a new convention center is now.

Let me note that we have already had interest from some local developers. With us today are those who have showed an early interest: Mark Pfeffer, John Rubini, John Blomfield, and Robert Gottstein.

It’s been exciting to hear some early suggestions and ideas and I appreciate their show of support today. Now, let me turn it over to Bruce Bustamante from ACVB. Then I’ll be happy to take questions.

###