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      Convention Center Follies

      AMERICAN BUSINESS, POLITICS, AND SOCIETY

       Series editors: Andrew Wender Cohen, Pamela Walker Laird, Mark H. Rose, and Elizabeth Tandy Shermer

      Books in the series American Business, Politics, and Society explore the relationships over time between governmental institutions and the creation and performance of markets, firms, and industries large and small. The central theme of this series is that politics, law, and public policy—understood broadly to embrace not only lawmaking but also the structuring presence of governmental institutions—has been fundamental to the evolution of American business from the colonial era to the present. The series aims to explore, in particular, developments that have enduring consequences.

      A complete list of books in the series is available from the publisher.

       Convention Center Follies

      Politics, Power, and Public Investment in American Cities

      Heywood T. Sanders

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      UNIVERSITY OF PENNSYLVANIA PRESS

      PHILADELPHIA

      Copyright © 2014 University of Pennsylvania Press

      All rights reserved. Except for brief quotations used for purposes of review or scholarly citation, none of this book may be reproduced in any form by any means without written permission from the publisher.

      Published by

      University of Pennsylvania Press

      Philadelphia, Pennsylvania 19104-4112

       www.upenn.edu/pennpress

      Printed in the United States of America on acid-free paper

      10 9 8 7 6 5 4 3 2 1

      Library of Congress Cataloging-in-Publication Data

      Sanders, Heywood T.

      Convention center follies : politics, power, and public investment in American cities / Heywood T. Sanders — 1st ed.

      p. cm. (American business, politics, and society)

      Includes bibliographical references and index

      ISBN 978-0-8122-4577-6 (hardcover : alk. paper)

      1. City promotion—Economic aspects—United States. 2. Convention facilities—Economic aspects—United States. 3. Convention facilities—Economic aspects—United States—Case studies. 4. Congresses and conventions—Economic aspects—United States. 5. Congresses and conventions—Economic aspects—United States—Case studies. I. Title. II. Series: American business, politics, and society

      HT325 .S26 2014

659.2’930776 2013036503

       For Hilary and David

      and for George Wendel, a model teacher and scholar

      Contents

       Preface

       Part I: The Race to Build

       Chapter 1. Building Boom

       Chapter 2. Paying for the Box

       Chapter 3. Promises and Realities

       Chapter 4. They Will Come…and Spend

       Chapter 5. Missing Impact

       Part II: From Economics to Politics

       Chapter 6. Chicago: Bolstering the Business District

       Chapter 7. Atlanta: Enhancing Property Values

       Chapter 8. St. Louis: Protection from Erosion

       Conclusion: The Cities Business Builds

       Note on Sources

       Notes

       Index

       Acknowledgments

      Preface

      City governments are usually viewed as providers of basic services: police and fire protection, public works, parks and recreation, and libraries. Yet cities and a broad array of other local governments are also providers of public capital. They have long built major public buildings such as city halls, courthouses, and libraries, and in some places public auditoriums and theaters. In the 1950s and 1960s, a number of communities began the development of new convention halls—New York City’s Coliseum, Cleveland’s Convention Center, Atlanta’s Civic Center, Baltimore’s Civic Center—as part of schemes for urban renewal or downtown revitalization.

      Those early convention venues were succeeded and replaced by newer, larger, and presumably more competitive centers within a decade or two. New York City’s Coliseum was replaced by the new Jacob K. Javits Convention Center in 1986; Atlanta’s Civic Center, opened in 1967, was superseded by the new Georgia World Congress Center in 1976. The new Baltimore Convention Center was opened in summer 1979.

      During the 1980s and 1990s, the public investment in new and expanded convention centers boomed, as other cities sought to compete with New York, Chicago, and Atlanta. And that boom continues, with state and local governments spending over $13 billion on center building between 2002 and 2011. The building boom has been driven in large part by a revolution in center finance, and by a new kind of public role and promise. Expansive new convention centers increasingly became the product of state governments or special purpose public authorities, neatly avoiding the political and fiscal limits on city governments.

      At the same time, a massive convention facility was no longer simply a means of accommodating an occasional national political gathering or a symbol of local pride. It was touted as a key element in local “economic development,” one premised on the assumption, regularly validated by “expert” consultants, that a new or larger convention center would yield a wave of new out-of-town visitors. Those visitors, bringing “new money” to the city, would in turn spur new private development, and ultimately thousands—often tens of thousands—of new jobs. With that money, development, and jobs would come a proportional wave of new public tax revenues, revenues sufficient to provide a substantial “return” on the public investment in convention center development.

      In many ways, the contemporary convention center development story is one of the unbridled successes of local government: success in overcoming political obstacles and often public opposition, success in mobilizing public revenues and dollars, success in building expansive

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