Taxpayers Association Wants More Comprehensive Business Plan for Convention Hall

CAPE MAY — The Taxpayers Association of Cape May is dissatisfied with a business plan presented by the Temple University School of Tourism and Hospitality Management for the city’s new Convention Hall.
“It kind of fell short for what we wanted to see in a business plan,” said Kate Wyatt, association president at a Nov., 19 taxpayers association meeting.
The board of directors of the association debated whether they would submit an editorial on the topic or purchase an ad in a local newspaper. Their main point, “How will the bills get paid after the ribbon is cut?”
Board member Dennis Crowley said no one was acknowledging Convention Hall would have an impact on the city’s budget and taxpayers.
“We want to make sure that they have this thing all squared away as early as possible so we all understand what the impact is,” he said.
In a statement the association was preparing, they noted, “serious attention must be paid to exploring new and different revenue sources to minimize the cost on the property taxpayers to a more reasonable number.”
Board member Pete Iurata said taxpayers have been paying to operate Convention Hall, “all these years, we just didn’t know a number at that time.”
The association is calling for a comprehensive business plan with specific objectives and goals to “guide the city with logic and discipline.” In their statement, the association requested an operational plan, a financial plan, management team and organization plan, market analysis and strategy and community and business benefit plan.
Crowley said the administrative structure to run Convention Hall and other city recreational activities need to be examined. He said the primary area of interest is how much will it cost to operate the hall.
Crowley questioned what “non-hall” revenue was doing in a revenue analysis from Temple University for Convention Hall, which totaled $220,000.
Board member Harry Bellangy said if that was included, the operating loss for the hall appeared lower.
Crowley said the Temple University study captured operating expenses for the hall but it was not clear the line item was just for Convention Hall. The study projected an $111,000 yearly loss for the new facility.
“I see us saying instead, ‘we’re not going to lose $111,000 on this hall, we’re going to defy the trend, in which halls like this don’t make money,’ we are going to become aggressive about using what we’re building here and turn it into a self-supporting, self-sufficient entity,’” said Crowley.
He questioned Temple’s projection of a total of only 10 concerts per year in the new hall, all of which would be presented by the Cape May Jazz Festival and Mid Atlantic Center for the Arts at “cut-rate prices” for the hall rental. Crowley said that was not a marketing plan.
“There are 200 nights in the summer season,” said Crowley. “We’re only gone to have 10 concerts and 22 exhibits?”
Bellangy said the city has not shown how the hall will be utilized. He said it seemed the new Convention Hall would only host the same events as the old hall.
“Someone has put a $110,000 loss on the table and now we’re all expected to deal with that,” said Crowley.
When the ribbon is cut to open the new hall is not the time to develop a marketing plan, he said.
Bellangy said marketing for the new hall should be taking place at this time.
Crowley acknowledged the Temple University study was a “very rough, conservative estimate of revenue.”
“I would be very surprised if what is presented in the business plan wasn’t closer to a worst-case scenario than a best-case scenario,” said Aubrey Kent, associate professor and director of programs and sports recreation management at the Sports Industry Research Center at the Temple University School of Tourism and Hospitality Management, when he presented a business plan for Convention Hall to City Council, Oct. 21.