Albany Convention Center
Encyclopedia
The Albany Convention Center (ACC) is a proposed convention center
to be located in downtown Albany
, New York
. The complex was initially proposed by Albany Mayor Gerald Jennings
in 1994, though no real action was taken until 2002; the project has been controversial from the beginning. In 2004 the Albany Convention Center Authority (ACCA) was established by the New York Legislature
to develop plans for the site. Supported by Governor
George Pataki
, the project was awarded a $75 million grant in 2005. Initial cost estimates for the project started at around $150 million, but these soon rose to almost $400 million before dropping again to $220 million after turning hotel and parking garage development over to private firms. The finished complex is expected to have around 300000 square feet (27,870.9 m²) of convention space.
The main incentive for the ACC is the lack of significant convention space in Albany—New York's capital—and the potential for significant use by state-wide organizations. The project is also controversial, being seen as a poor use of tax-payer money, especially during an economic recession.
and various supporters in 1994, though progress was not actually made until 2002 when the mayor put out a "request for expressions of interest", with which the mayor requested possible locations for the convention center as well as preliminary designs and cost estimates. The complex was initially expected to cost between $140 and $160 million. The incentive for such a plan was based mainly on the lack of significant convention space in Albany and potential profits that could be generated from such a center in the state capital. Early plans suggested a 400-room hotel and up to 130000 square feet (12,077.4 m²) of convention space, large enough to accommodate 5,000 to 7,000 people.
Plans expanded quickly and by early 2003, estimates had reached $185 million with 250000 square feet (23,225.8 m²) and parking for up to 1,500 cars. By this time a Jennings-appointed convention center task force had yet to decide on a site. The top two locations were west of the Pepsi Arena between State and Beaver Streets and east of the Pepsi bounded by Broadway, Beaver Street, and Greene Street.
, Assembly Speaker Sheldon Silver
, and Senate Majority Leader Joseph Bruno, the New York Legislature
established the Albany Convention Center Authority (ACCA), the public body entrusted with developing the convention center. The outcome was not that preferred by Jennings: his initial plan sought a development authority with greater power and the ability to finance up to $500 million with state backing. As created by the Legislature, the Authority was a group made of members to be appointed by a number of different state officials, with a finance limit of $185 million.
In 2005, Albany County
's three-percent hotel tax was increased to five percent and a year later it was upped to six percent. The additional tax was expected to raise $3 million annually in an effort to pay off the ACCA's $8.5 million estimated annual cost. Many local hotel owners and managers opposed the increased tax since the proceeds were funding a future competitor.
In early 2008, after a study by an architectural firm, the estimated cost was increased to almost $400 million. Jennings, the original proposer of the ACC, responded to this estimate by indicating the plan might no longer be viable. Members of the Authority, however, disagreed. At this time the plans were revised to include a 244000 square feet (22,668.3 m²) convention center, a 400-room Sheraton Hotel and a raised parking garage with capacity for 1,100 cars. The project's major setback was lack of funding from the state, which was dealing with a $4.4 billion budget deficit. Many locals opposed the plan as wasteful spending; in contrast, a February 2008 Times Union editorial indicated its support saying, "This is a state project, not a city project and one entirely deserving of a commitment even larger than the $205 million that's been approved already."
With the state only approving about $200 million (including a $75 million grant from Governor Pataki), the ACCA made it clear in April 2008 that state tax money should pay for the difference ($190 million) in funding the project. In response, the new Paterson
administration contracted with PricewaterhouseCoopers
to review the viability of the project. By this point the project had spent only $2 million of the $75 million allotted by former Governor Pataki. The funding could only be spent on master planning. While waiting for approval from the State, the project was given permission to begin archaeological digs around the preferred site between Broadway, Hudson Avenue and the South Mall Arterial. Various relics from Albany's Dutch past were uncovered and catalogued for inclusion in future museum displays.
While ACCA board member (and Albany Assemblyman) Jack McEneny
stated his belief that the ACC would eventually pay for itself through its revenue, the Empire Center for New York State Policy described it as "a white elephant from the start. Here at a time where our borrowing is already excessive and our state budget is already overcommitted, you're talking about bailing out a project that was unnecessary to begin with." By this time, a preliminary location had been selected by the ACCA, several downtown blocks near Broadway and Hudson Avenue, an area McEneny described as "the last ugly section of downtown". A study sponsored by the ACCA projected that the ACC would bring in 50 to 85 events annually, each lasting one to four days; 100,000 to 185,000 more annual visitors are expected to the city as a result.
Amid large cuts proposed by Andrew Cuomo
in his 2011 budget, the original funding for the ACC remained.
In late 2008, $10 million (part of the original $75 million promised by Governor Pataki) was released by Governor Paterson to begin the acquisition of the land necessary for the project. The first piece of land, a 0.5 acre (0.202343 ha) parking lot, was bought in July 2009 from Greyhound Lines, Inc. at a cost of $469,673. In August 2009, the Albany County Legislature approved the sale of nine vacant county-owned lots—totaling 0.39 acre (0.15782754 ha)—to the ACCA at a cost of $453,000. In February 2010, the ACCA bought about 0.5 acre (0.202343 ha) of land, which brought its total to about 1.5 acre (0.607029 ha). In August 2010 it purchased about 3 acres (1.2 ha) of land at a cost of $5.9 million. After this sale, the ACCA had acquired about 75% of the land necessary for the project.
In November 2009, the ACCA revealed its design, developed by HNTB
. A formal price was also released: $220 million. The ACCA was able to drop from its earlier $400 million estimate by turning hotel and parking garage development over to private developers. This brought the cost estimate down to between $225 million and $240 million. After considering the cost of goods and commodities during the economic recession, the estimate dropped again to $220 million.
Because the project was not shovel-ready
at the time, the ACC was not eligible for stimulus funds
.
and Hudson Avenue. The current site consists mostly of surface-level parking lots. The design will consist mainly of a brick and glass structure. The meeting area would comprise an exhibition hall, two ballrooms and other various meeting spaces totaling about 300000 square feet (27,870.9 m²).
In early 2008, it was announced that the site would include a 400-room Sheraton Hotel, to be run by Starwood Hotels and Resorts Worldwide Inc., of White Plains
; a 300000 square feet (27,870.9 m²) convention center, to be operated by SMG Management—the company that operates the Times Union Center—and an 1,100-car parking garage. A bridge will also connect the convention center to the Times Union Center. The back of the center will be pushed up against the South Mall Arterial, with loading docks on that side. A plaza will be built near the center of the complex, facing Broadway. The design will allow for future expansion of the convention space, if needed.
Within the site boundary is the Van Ostrande-Radliff House, one of the oldest houses in the Capital District
, which is also believed to be the oldest building in the city of Albany. The house was built by Johannes van Ostrande around 1728 and is a rare example of Dutch architecture from its time. Owner Brian Parker came into agreement with the ACCA that the building would be saved, possibly making use of it as a visitor's center.
campus, or the Harriman State Office Campus
. It has also been suggested that since the ACCA has already accumulated some funds (though not enough to complete the current plans), it should instead invest the capital in buying up vacant buildings and renovating them as a stimulus for the downtown economy. Opponents question the cost of the project, especially during such difficult fiscal times.
Even considering the economic crisis, the Albany area has seen a general shortage of construction workers. The $4.2 billion GlobalFoundries
chip plant that was begun in nearby Malta in 2008 already strained the labor market and some worry that building the ACC will just exacerbate the problem.
Convention center
A convention center is a large building that is designed to hold a convention, where individuals and groups gather to promote and share common interests. Convention centers typically offer sufficient floor area to accommodate several thousand attendees...
to be located in downtown Albany
Albany, New York
Albany is the capital city of the U.S. state of New York, the seat of Albany County, and the central city of New York's Capital District. Roughly north of New York City, Albany sits on the west bank of the Hudson River, about south of its confluence with the Mohawk River...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. The complex was initially proposed by Albany Mayor Gerald Jennings
Gerald Jennings
Gerald David "Jerry" Jennings is the mayor of Albany, New York, United States. A Democrat, Jennings won a shocking upset in the 1993 mayoral primary over Harold Joyce, who had the Democratic Party’s formal endorsement and had only recently been its chairman. In 1993, he won the general election,...
in 1994, though no real action was taken until 2002; the project has been controversial from the beginning. In 2004 the Albany Convention Center Authority (ACCA) was established by the New York Legislature
New York Legislature
The New York State Legislature is the term often used to refer to the two houses that act as the state legislature of the U.S. state of New York. The New York Constitution does not designate an official term for the two houses together...
to develop plans for the site. Supported by Governor
Governor of New York
The Governor of the State of New York is the chief executive of the State of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military and naval forces. The officeholder is afforded the courtesy title of His/Her...
George Pataki
George Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
, the project was awarded a $75 million grant in 2005. Initial cost estimates for the project started at around $150 million, but these soon rose to almost $400 million before dropping again to $220 million after turning hotel and parking garage development over to private firms. The finished complex is expected to have around 300000 square feet (27,870.9 m²) of convention space.
The main incentive for the ACC is the lack of significant convention space in Albany—New York's capital—and the potential for significant use by state-wide organizations. The project is also controversial, being seen as a poor use of tax-payer money, especially during an economic recession.
Initial plans
The plan originated with Albany Mayor Gerald JenningsGerald Jennings
Gerald David "Jerry" Jennings is the mayor of Albany, New York, United States. A Democrat, Jennings won a shocking upset in the 1993 mayoral primary over Harold Joyce, who had the Democratic Party’s formal endorsement and had only recently been its chairman. In 1993, he won the general election,...
and various supporters in 1994, though progress was not actually made until 2002 when the mayor put out a "request for expressions of interest", with which the mayor requested possible locations for the convention center as well as preliminary designs and cost estimates. The complex was initially expected to cost between $140 and $160 million. The incentive for such a plan was based mainly on the lack of significant convention space in Albany and potential profits that could be generated from such a center in the state capital. Early plans suggested a 400-room hotel and up to 130000 square feet (12,077.4 m²) of convention space, large enough to accommodate 5,000 to 7,000 people.
Plans expanded quickly and by early 2003, estimates had reached $185 million with 250000 square feet (23,225.8 m²) and parking for up to 1,500 cars. By this time a Jennings-appointed convention center task force had yet to decide on a site. The top two locations were west of the Pepsi Arena between State and Beaver Streets and east of the Pepsi bounded by Broadway, Beaver Street, and Greene Street.
Government support
In June 2004, with the support of Governor George PatakiGeorge Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
, Assembly Speaker Sheldon Silver
Sheldon Silver
Sheldon "Shelly" Silver is an American lawyer and Democratic politician from New York. He has held the office of Speaker of the New York State Assembly since 1994.- Personal life :...
, and Senate Majority Leader Joseph Bruno, the New York Legislature
New York Legislature
The New York State Legislature is the term often used to refer to the two houses that act as the state legislature of the U.S. state of New York. The New York Constitution does not designate an official term for the two houses together...
established the Albany Convention Center Authority (ACCA), the public body entrusted with developing the convention center. The outcome was not that preferred by Jennings: his initial plan sought a development authority with greater power and the ability to finance up to $500 million with state backing. As created by the Legislature, the Authority was a group made of members to be appointed by a number of different state officials, with a finance limit of $185 million.
In 2005, Albany County
Albany County, New York
Albany County is a county located in the U.S. state of New York, and is part of the Albany-Schenectady-Troy Metropolitan Statistical Area. The name is from the title of the Duke of York and Albany, who became James II of England . As of the 2010 census, the population was 304,204...
's three-percent hotel tax was increased to five percent and a year later it was upped to six percent. The additional tax was expected to raise $3 million annually in an effort to pay off the ACCA's $8.5 million estimated annual cost. Many local hotel owners and managers opposed the increased tax since the proceeds were funding a future competitor.
In early 2008, after a study by an architectural firm, the estimated cost was increased to almost $400 million. Jennings, the original proposer of the ACC, responded to this estimate by indicating the plan might no longer be viable. Members of the Authority, however, disagreed. At this time the plans were revised to include a 244000 square feet (22,668.3 m²) convention center, a 400-room Sheraton Hotel and a raised parking garage with capacity for 1,100 cars. The project's major setback was lack of funding from the state, which was dealing with a $4.4 billion budget deficit. Many locals opposed the plan as wasteful spending; in contrast, a February 2008 Times Union editorial indicated its support saying, "This is a state project, not a city project and one entirely deserving of a commitment even larger than the $205 million that's been approved already."
With the state only approving about $200 million (including a $75 million grant from Governor Pataki), the ACCA made it clear in April 2008 that state tax money should pay for the difference ($190 million) in funding the project. In response, the new Paterson
David Paterson
David Alexander Paterson is an American politician who served as the 55th Governor of New York, from 2008 to 2010. During his tenure he was the first governor of New York of African American heritage and also the second legally blind governor of any U.S. state after Bob C. Riley, who was Acting...
administration contracted with PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
to review the viability of the project. By this point the project had spent only $2 million of the $75 million allotted by former Governor Pataki. The funding could only be spent on master planning. While waiting for approval from the State, the project was given permission to begin archaeological digs around the preferred site between Broadway, Hudson Avenue and the South Mall Arterial. Various relics from Albany's Dutch past were uncovered and catalogued for inclusion in future museum displays.
While ACCA board member (and Albany Assemblyman) Jack McEneny
John McEneny
John "Jack" McEneny is an American politician of the Democratic Party, and is currently a member of the New York State Assembly, representing about half of Albany County in the 104th Assembly District....
stated his belief that the ACC would eventually pay for itself through its revenue, the Empire Center for New York State Policy described it as "a white elephant from the start. Here at a time where our borrowing is already excessive and our state budget is already overcommitted, you're talking about bailing out a project that was unnecessary to begin with." By this time, a preliminary location had been selected by the ACCA, several downtown blocks near Broadway and Hudson Avenue, an area McEneny described as "the last ugly section of downtown". A study sponsored by the ACCA projected that the ACC would bring in 50 to 85 events annually, each lasting one to four days; 100,000 to 185,000 more annual visitors are expected to the city as a result.
Amid large cuts proposed by Andrew Cuomo
Andrew Cuomo
Andrew Mark Cuomo is the 56th and current Governor of New York, having assumed office on January 1, 2011. A member of the Democratic Party, he was the 64th New York State Attorney General, and was the 11th United States Secretary of Housing and Urban Development...
in his 2011 budget, the original funding for the ACC remained.
Procuring land
| Date | Size(acre) | Price | Seller | Ref. |
|---|---|---|---|---|
| 31 Jul 2009 | 0.5 | $469,673 | Greyhound Lines, Inc. | |
| 28 Aug 2009 | 0.39 | $435,000 | Albany County Albany County, New York Albany County is a county located in the U.S. state of New York, and is part of the Albany-Schenectady-Troy Metropolitan Statistical Area. The name is from the title of the Duke of York and Albany, who became James II of England . As of the 2010 census, the population was 304,204... |
|
| 24 Feb 2010 | 0.33 | $550,000 | Capitalize Albany Corp. | |
| 20 Aug 2010 | 3.0 | $5,900,000 | City Square Associates |
In late 2008, $10 million (part of the original $75 million promised by Governor Pataki) was released by Governor Paterson to begin the acquisition of the land necessary for the project. The first piece of land, a 0.5 acre (0.202343 ha) parking lot, was bought in July 2009 from Greyhound Lines, Inc. at a cost of $469,673. In August 2009, the Albany County Legislature approved the sale of nine vacant county-owned lots—totaling 0.39 acre (0.15782754 ha)—to the ACCA at a cost of $453,000. In February 2010, the ACCA bought about 0.5 acre (0.202343 ha) of land, which brought its total to about 1.5 acre (0.607029 ha). In August 2010 it purchased about 3 acres (1.2 ha) of land at a cost of $5.9 million. After this sale, the ACCA had acquired about 75% of the land necessary for the project.
In November 2009, the ACCA revealed its design, developed by HNTB
HNTB
HNTB Corporation is an architecture and engineering consulting firm headquartered in Kansas City, Missouri that has designed many bridges, roadways, airports and professional sports stadiums across the United States and around the world.The firm started in 1914 as Harrington, Howard & Ash...
. A formal price was also released: $220 million. The ACCA was able to drop from its earlier $400 million estimate by turning hotel and parking garage development over to private developers. This brought the cost estimate down to between $225 million and $240 million. After considering the cost of goods and commodities during the economic recession, the estimate dropped again to $220 million.
Because the project was not shovel-ready
Shovel ready
A project is considered shovel ready if it has advanced to the stage that laborers may immediately be employed to start work. The term is used in reference to projects which are candidates for economic stimulus spending: money put into a shovel ready project will have a more immediate impact on the...
at the time, the ACC was not eligible for stimulus funds
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
.
Description
The ACC will be located along Broadway between the South Mall ArterialSouth Mall Arterial
The South Mall Arterial is a short expressway built in the early 1960's in Albany, New York, United States. It runs west from the interchange between Interstate 787, U.S. Route 9, and U.S. Route 20, at the west end of the Dunn Memorial Bridge, and runs under the Empire State Plaza...
and Hudson Avenue. The current site consists mostly of surface-level parking lots. The design will consist mainly of a brick and glass structure. The meeting area would comprise an exhibition hall, two ballrooms and other various meeting spaces totaling about 300000 square feet (27,870.9 m²).
In early 2008, it was announced that the site would include a 400-room Sheraton Hotel, to be run by Starwood Hotels and Resorts Worldwide Inc., of White Plains
White Plains, New York
White Plains is a city and the county seat of Westchester County, New York, United States. It is located in south-central Westchester, about east of the Hudson River and northwest of Long Island Sound...
; a 300000 square feet (27,870.9 m²) convention center, to be operated by SMG Management—the company that operates the Times Union Center—and an 1,100-car parking garage. A bridge will also connect the convention center to the Times Union Center. The back of the center will be pushed up against the South Mall Arterial, with loading docks on that side. A plaza will be built near the center of the complex, facing Broadway. The design will allow for future expansion of the convention space, if needed.
Within the site boundary is the Van Ostrande-Radliff House, one of the oldest houses in the Capital District
Capital District
New York's Capital District, also known as the Capital Region, is a region in upstate New York that generally refers to the four counties surrounding Albany, the capital of the state: Albany County, Schenectady County, Rensselaer County, and Saratoga County...
, which is also believed to be the oldest building in the city of Albany. The house was built by Johannes van Ostrande around 1728 and is a rare example of Dutch architecture from its time. Owner Brian Parker came into agreement with the ACCA that the building would be saved, possibly making use of it as a visitor's center.
Controversy
The Albany Convention Center has seen significant opposition from its inception. Opposing viewpoints offer a range of alternative plans. Some state that Albany doesn't need a convention center at all, some suggest the ACCA consider expanding current convention facilities and others have proposed moving the project to other areas of the city, such as the University Heights neighborhood, the College of Nanoscale Science and EngineeringCollege of Nanoscale Science and Engineering
The College of Nanoscale Science and Engineering , on the campus of the University at Albany is a global education, research, development and technology deployment resource for students and researchers in nanotechnology...
campus, or the Harriman State Office Campus
W. Averell Harriman State Office Building Campus
The W. Averell Harriman State Office Building Campus is an office park in western Albany, New York, United States that houses sixteen New York State Government office buildings. The land totals roughly and over 3 million square feet of office space, and about 7,000 state employees work there...
. It has also been suggested that since the ACCA has already accumulated some funds (though not enough to complete the current plans), it should instead invest the capital in buying up vacant buildings and renovating them as a stimulus for the downtown economy. Opponents question the cost of the project, especially during such difficult fiscal times.
Even considering the economic crisis, the Albany area has seen a general shortage of construction workers. The $4.2 billion GlobalFoundries
GLOBALFOUNDRIES
GlobalFoundries Inc. is the world's third largest independent semiconductor foundry, with its headquarters located in Milpitas, California. GlobalFoundries was created by the divestiture of the manufacturing side of AMD on March 2, 2009, and was expanded through its merger with Chartered...
chip plant that was begun in nearby Malta in 2008 already strained the labor market and some worry that building the ACC will just exacerbate the problem.