Update – Future of the Dayton Convention Center Headquarter Hotel

Apr 24, 2024

For Immediate Release: April 24, 2024
Dayton, OH

Today, the Montgomery County Convention Facilities Authority (MCCFA) presented a proposal to the Dayton City Commission for development of a new full service headquarter hotel property, adjacent to the Dayton Convention Center. The 2022 closure of the attached hotel property, the uncertainty of the reopening date, and the loss of the 287-hotel room inventory downtown has been and remains a challenge to attract new regional business necessary to
support the investment and convention growth in the region.Pam Plageman, Executive Director/CEO of the MCCFA, sought support from the Dayton CityCommission via an economic development agreement to convey the land necessary for the project and for funding in the amount of $1.5 million to begin the process to attract a developer for a full-service convention hotel, located at the “city plaza” location on S. Jefferson Street, between E. Fifth and Stone Streets (0.4± acres). The MCCFA has also sought support from the
Montgomery County Board of County Commissioners, who are matching the City of Dayton contribution by providing $1.5 million for the venture.

The MCCFA engaged with Meyer’s Architects, (Dayton AC Marriott and Fairfield Inn projectarchitects) to conduct a study of the city plaza feasibility in 2023. The MCCFA will solicit developers for preliminary project proposals and pre-qualification through an RFQ process, with the support of HPD Advisors, a seasoned hotel consultant group. Along with the $3 million investment from the city and county, and the conveyance of land, the MCCFA will also invest $1.5 million. The successful developer will secure private financing/debt, and longer-term incentives will be determined to close the funding gap and improve the private sector value. It is anticipated that the new hotel will have more than 200 guest rooms, along with a restaurant, and retail/civic/entertainment spaces adjacent to the Oregon Garage (aka Transportation Garage).

Previous studies have identified that 500 committable rooms, within a three-block walking radius of the Dayton Convention Center, are needed to support the newly renovated, 150,000 square foot Convention Center. Committable blocks of rooms are rooms the hotel is willing to set aside for group business. The upcoming openings of the Dayton Arcade’s Hilton Garden Inn (94 rooms) and the Hotel Ardent (118 rooms) complement the widely accepted need for more downtown hotel rooms.

Convention center customers (80%±) demand an adjacent nationally recognized hotel brand. Dayton’s economic benefit, post-renovation with a headquartered hotel, is estimated at $22,586,000 in Dayton Convention Center-generated direct spending, and 430 potential new jobs.

In addition to the City of Dayton and Montgomery County support, the MCCFA wishes to acknowledge the private, collaborative partnerships with CityWide Development, Cross Street Partners, Downtown Dayton Partnership, Dayton Area Chamber of Commerce, and the Dayton Convention & Visitors Bureau for making this milestone possible.

“Combined with these strong partnerships, the region’s unique attractions, and the newly renovated Dayton Convention Center, ‘Destination Dayton’ will be a leading competitor for conventions, meetings, and events that drive significant regional economic impact,” said Pam Plageman, Executive Director/CEO, of the MCCFA.

Contact:
MCCFA – Pam Plageman, MCCFA Executive Director/CEO, pplageman@montgomerycountycfa.org
or
Teri Lemman, Executive Assistant, 937-535-5309 (to schedule interviews)

 

ADDITIONAL BACKGROUND

The Dayton Convention Center and the MCCFA
In 1973, the Dayton Convention Center opened and was operated by the City of Dayton. Transfer of ownership to the Montgomery County Convention Facilities Authority (aka “MCCFA” and “the Authority”) took place on April 1, 2021. Established by the Montgomery County Board of County Commissioners pursuant to Chapter 351.02 of the Ohio Revised Code, the MCCFA is a
special governmental unit.

As owner of the facility, the MCCFA is responsible for the improvement, investment, management, and successful operation of the Dayton Convention Center (DCC). In addition, the MCCFA is an advocate for ensuring the continued success and growth of the convention business within Montgomery County. Both responsibilities are directly linked to the MCCFA’s investment in and support of services, resources, facilities, and community projects that enhance the use and improvement of the convention center district.

The mission of the Authority is to revitalize the center and support the Dayton Convention & Visitors Bureau with the promotion of convention, visitor, and sporting events in Montgomery County. The MCCFA is funded by a 3% hotel/motel occupancy lodging tax and receives the Cityof Dayton 3% lodging tax collections. These revenues are utilized to renovate the DCC and fund
operations. The goal of the center is to attract conventions to bring out-of-town tourists to the region and generate an economic impact throughout Montgomery County.

The City of Dayton owns the real estate on which the center is situated and holds a ground lease with the Authority. The Authority governs the center through the MCCFA Board of Directors, made up of 11 members, appointed by Montgomery County, the City of Dayton, and the Mayor and Managers Association. The board was established in November 2019.

The facility currently offers a total of 150,000 square feet of space, including 68,400 square feet of exhibit space with a VIP show manager’s suite; 20,000 square feet of ballroom space; 12,400 square feet of meeting space; a 672-seat theatre and two board rooms. There is one active tenant with office space at the facility (the Dayton Convention & Visitors Bureau).

The facility is located downtown and connected to the former Radisson Dayton Hotel. There is an attached parking garage with 1,500 spaces. The Levitt Pavilion, an outdoor concert venue built in 2018. The Dayton International Airport is 12 miles from the Center.Downtown Dayton’s Oregon District is a mixed-use urban center offering residential, entertainment, dining, and shopping options. The historical “Dayton Arcade”, four blocks from the Center, redevelopment is underway with plans for a 500,000 square foot complex of marketplace retail, restaurants, and residential micro-lofts, as well as a commercial kitchen, higher education, and retail offices.

Economic Impact Potential
“ECONOMIC IMPACT: The direct spending associated with historical DCC event
activity approximates $10.4 million annually. This total is negatively impacted
by conditions at the DCC and nearby hotel inventory. An improved DCC with
added hotel inventory is estimated to generate nearly $22.6 million in direct
spending, representing a spending increase of 118%. When considering how
dollars are distributed throughout the economy after initial spending, the
improved DCC is estimated to generate nearly $38.8 million per year in total
economic output annually, approximately $21 million more than the existing
DCC. Further, these incremental dollars generated are estimated to result in
an additional $7.1 million in annual earnings in the area (from $6.0 million to
$13.1 million), as well as an additional 230 jobs per year from (200 jobs to 430
jobs).”
Source – Strategic Planning for a Redeveloped Dayton Convention Center –
January 18, 2022 – CSL LLC