Convention center price tag exceeds $1B

Even before construction has started, the price of a new Broward convention center and hotel has passed $1 billion.

That’s $100 million more than the previous estimate for the new hotel, expanded convention center and outdoor waterfront plaza expected to be under construction this fall and be completed in May 2023.

“We’re going to be looking hard at what we now have before us to see if there are opportunities to save,” Assistant County Administrator Alan Cohen told county commissioners Tuesday.

There’s also been a significant change in construction plans, with the county deciding the convention center will have to shut down completely for about 19 months during a portion of the construction.

“It’s lower risk and cost,” Cohen said. “We’re not in there working while other people are in the building.”

Visitors who enjoy the Fort Lauderdale Home Design and Remodeling Show at the convention center should make plans to go this fall because it could be two years or more before another one is held there. Officials don’t expect any convention events from February 2020 through November 2021.

The county had expected to keep the convention center open during the expansion, but it turned out most of the larger events wouldn’t have enough space with the portions that would have to be closed for construction, Cohen said.

The Home Show, the Fort Lauderdale International Auto Show and other trade and consumer events will have to find new digs as the convention center closes for about 19 months starting in February.

Commissioners approved spending $1.3 million to cover payments to county hotels that incurred cancellation fees from convention center clients that had been under contract with the hotels for their events. The money also will be used by the Greater Fort Lauderdale Convention & Visitors Bureau to help those clients find alternative sites for their functions.

Shutting down convention center operations during a significant portion of the construction will shave about two years off a major portion of the work, officials said.

While approving the plan to close the facility, some commissioners were concerned about the negative effect.

“The longer that is [shut down], the more of the business activity that we might possibly lose permanently,” Commissioner Tim Ryan said.

Cohen said a large portion of the increased cost is due to higher prices for building materials caused by inflation and higher tariffs. Upgrades also have been added to the project, including additional protections from storms and floods. The hotel, for instance, would be able to operate from the second floor if the ground level was inundated, Cohen said.

The 800-room hotel the county is building will be managed by Omni Hotels. The convention center will include a massive new ballroom that can seat 5,000 for dinner at one time. Exhibition space is supposed to increase 75 percent to 350,000 square feet. Another level with 150,000 square feet could be added in the future if needed.

Under current estimates, the western portion of the convention center should be completed in October 2021, after which the convention center could reopen. The eastern portion would be finished in January 2023 and the hotel in May 2023.

The county will issue bonds to pay for the project. The convention center expansion and creation of an outdoor plaza, now estimated to cost $584 million, would be paid for using tourist sales tax dollars that are paid by hotel guests in the county. Bonds for the hotel, expected to cost $491 million, would be paid back from the hotel’s revenues.

The new center will put a heavier emphasis on attracting trade shows and business conferences attended by visitors from across the country who boost the economy by staying at local hotels, rather than consumer shows that primarily attract people from South Florida who drive in for an event and then go home.

The project includes plans for a bypass to relieve traffic on crowded Southeast 17th Street that will provide a shortcut for drivers heading to the beach or leaving the beach to get to the airport.

BROWARD COUNTY/COURTESY Broward’s plans for a new convention center are growing — as is its expected cost. The total project, including hotel, is now estimated to cost $1.07 billion.