Dome repairs seen as worth every penny of $10 million
Melissa S. Monroe
Express-News Business Writer
The 14-year-old Alamodome has no tenant, operates at a loss and has been criticized for not luring more high-profile, profitable events to the city.
Now, officials are about to ask for nearly $10 million in repairs to the facility.
"It's a controversial building no doubt about it, but the dome has been a huge shot in the arm for the tourism industry," Councilman Richard Perez said. "... It generates revenue to the hotel industry and ultimately to the city of San Antonio coffers."
Proponents say repairing the 65,000-seat dome, including finishing out corporate suites, is necessary to attract marquee-sporting events that generate millions in economic impact.
One such event is the NCAA Men's Final Four tournament in 2008, which is expected to snag more than $55 million for the city.
Combined with the NCAA's Men's South Regional in two weeks and the Women's Final Four in 2010, the events could generate close to $70 million.
"Imagine San Antonio without a Final Four, an Alamo Bowl or a Big 12 (football) Championship," said Andrea DeLaune, marketing manager for the city's convention, sports and entertainment facilities department, which manages the Alamodome. "These are huge events for the city."
It's estimated that this year's Men's Final Four at the Georgia Dome in Atlanta will attract almost 54,000 fans.
San Antonio is bidding next summer for future Final Fours.
To keep up with other cities that either are renovating or building new stadiums like Dallas, Houston and Indianapolis, San Antonio officials will be asking council members today to approve a little more than $1 million for repairs.
Another $7 million will be requested next month and an additional $1.9 million in June.
"Why now and why this much? It (the Final Four) is very competitive and this is one piece of the destination's appeal," convention facilities director Michael J. Sawaya. said.
Almost $3 million of the money will be paid for from a dome roof fund and hotel tax money. Two percentage points from the 16.75 percent tax go toward expansion projects like the Convention Center or building improvements.
But $7 million of the repairs still need a funding source, Sawaya said. He added the city could look at short-term financing or the use of more funds from the 2 percent portion of the hotel tax.
The city can recoup some of its Final Four expenses from the state through Senate Bill 150, which allows cities to get reimbursed for hosting such events.
Sawaya said it's critical the city make improvements now because deferred maintenance won't be reimbursed by the state if the work isn't completed in time for the 2008 Final Four.
Out of the city's convention facilities, the dome is one of the most costly to maintain. In 2003, it was estimated the debt-free dome, which cost $193 million to build in 1993, needed about $10 million in repairs.
Despite its need for work, it isn't the only city-owned facility operating at a loss.
The Convention Center operated at a loss consistently from 1999 to 2004, including losses of about $10 million in both 2003 and 2004.
Sports arenas and convention centers actually are considered loss leaders in many U.S. cities, said Ron Wirtz, editor of Fedgazette, an economic newspaper of the Federal Reserve Bank of Minneapolis.
He said it's not uncommon for cities to inflate economic impact numbers when referring to these centers.
"It's tough for cities to say no to public money and learn they could lose their sports team," Wirtz said, adding that includes marquee college games.
Councilman Roger O. Flores, whose district houses the dome, said Final Fours and Big 12 games provide a multimillion-dollar impact, and as long as the city is in competition for these, making repairs is a worthy investment.
The competition for NCAA events is getting stiff with other cities that have newer facilities or NFL teams in the buildings that continually make arena updates, said Pat Frost, chairman of the San Antonio Local Organizing Committee, which is hoping to secure more Final Fours.
"The NCAA knows when ... there's an NFL team in a stadium, the team is going to make sure the facility has first-class things," Frost said. "We have a challenge in San Antonio that other cities don't have. But the fact that the dome is downtown and within walking distance from 10,000 hotel rooms keeps us in the game."
Greg Shaheen, NCAA senior vice president of basketball and business strategies, agreed the dome has a unique challenge because it doesn't have a major tenant. He said the NCAA committee looks at venues to assure each maintains state-of-the art technology and space to meet the growing needs of the championship.
Since 2003, the dome has been making upgrades including new turf that cost a little more than $1 million, and revamped plaza entries, renovated club-level restrooms and floor treatments for another $1 million. It also received $2.9 million for upgrading the video walls, a production room and outdoor electronic marquees.
And about $1.3 million was spent to finish out 14 sideline suites, though it still needs more money to work on another 14 suites.
Some of the major improvements now needed for the dome include replacing the roof, replacing carpet in meetings rooms and furniture in 38 club-level suites, and providing a shade for the walkway from U.S. 281 to the Convention Center Bowie Street entrance.
mmonroe@express-news.net