Lexington convention center expansion is already behind schedule. Here’s why.
The long-awaited expansion of the Lexington Convention Center reached a critical but not-so-visible milestone in December.
The large, complex chiller system that runs Rupp Arena and the convention center’s air conditioning was successfully moved and transferred from the former Allied foods building to a newly-built addition.
Rupp Arena and the convention center must have air conditioning at all times, even in winter. That meant the new three-story addition had to be built in a horse shoe around the brick 1904 building until the new home for the chillers was complete.
The chillers were moved in mid-December. Excavators clawed through the second and third floor of the former utility plant building during a recent tour on Dec. 13. Once demo of the building is complete, construction on the interior of the three-story addition can move forward.
That addition on the Oliver Lewis Way side of Rupp Arena includes four new hospitality suites for the University of Kentucky men’s basketball games and a 202-space garage that club members can use. The expansion also includes an additional 300 spaces, for a total of 500 parking spaces.
The addition is the first of three stages in the overall convention center expansion project. When completed, the expansion will include the new addition, a ballroom, more exhibit hall space, meeting rooms, a new lobby and a new two-story building along Main Street.
At the same time, the exterior of Rupp Arena will get a new glass and metal exterior. The bones of the new exterior, as well as new 9-foot-glass doors on High Street, are currently under construction.
The renovation was originally slated to be completed in 2021 but now will not be finished until spring 2022, said Bill Owen, president and CEO of the Lexington Center Corporation, the group that oversees the convention center, Rupp Arena and the Lexington Opera House.
“We are about 35 percent into the project and have spent $100 million of the $275 million,” Owen said.
Construction to be done in phases
The three-story addition is scheduled to be completed in fall 2020. The hospitality suites, which were supposed to be ready by the beginning of this year’s UK men’s basketball season, will be completed prior to the 2020-2021 season, Owen said.
The new ballroom and lobby, which is phase two of the expansion, will be completed by spring 2021.
The two-story building, tentatively called the Pavilion, on Main Street will be done in the first six months of 2022, Owen said.
A delay in the demolition of the Jefferson Street bridge meant the overall construction timeline was pushed back. Then, a tangled mess of utility lines — gas, sewer, internet, water lines — had to be moved from underneath the former bridge. A rainy spring and summer also caused delays.
“We found a small but active sewer line that no one knew was there,” Owen said of one of the unexpected hiccups in the early days of demolition. “We’ve also had to do some engineering and other corrective measures.”
Owen said Lexington Center Corp. does not expect to need any additional money form the city or state. Instead, they are shaving costs during construction to stay within budget, he said.
“The programming and scope will remain the same,” Owen said.
That means no changes to the square footage or to meeting space. Some of the materials may change. Instead of a glass hand rail that was supposed to go in front of the building, the railing will be metal. They may swap polished concrete for a different, less-pricey concrete.
Lexington Center has not had to tap its $10 million reserve, he said. But more than two years of construction remains.
There is good news.
Utility lines have been mapped. Construction crews don’t anticipate more costly underground surprises over the next two years when construction moves to the ballroom, which will be behind the Mary Todd Lincoln House, or the two-story building that will front Main Street.
When the $275 million project is complete in late 2022, the expanded convention facility, which will wrap Rupp Arena but be a separate building, will total 756,593 square feet. Exhibit space will increase from the previous 66,000 square feet to 100,841 square feet, while ballroom space will rise from the previous 17,600 square feet to 25,080 square feet.
The renovations are being carried out by Messer Construction, NBBJ and EOP Architects. The construction costs are $241 million, with the total cost, including financing and engineering, topping out at $275 million.
The renovation will be paid for in a variety of ways, including $60 million from the Kentucky legislature that will be paid back; up to $30 million from the city council; a hotel-motel tax increase; a 15-year lease with UK; and a monetary commitment from VisitLex, the city’s tourism and visitors bureau. Revenue generated by the buildings will pay off construction bonds.
Rupp Arena, convention center will remain open
Complicating the construction timeline is the fact that Rupp Arena and the convention center will largely remain open during construction so revenue-generating events can continue.
That means temporary loading docks had to be built for concerts, UK basketball games and conventions.
When the renovation is completed, Owen said, the convention center and Rupp Arena will have separate loading docks, a first for the facility.
“The loading docks for Rupp Arena have to be wide enough so when Pink comes and has 24 trucks, they can get in,” Owen said. “Or when we have bull riding, they have to be wide enough for bulls to get in.”
Three of the new four club spaces can also be used by the convention center for lunch and dinner service during conventions. One of the club spaces will be for UK’s exclusive use.
More space will mean more conventions
More space means more conventions, said Mary Quinn Ramer, president of VisitLex, which does bookings for the convention center. Most conventions book two, three and sometimes five years in advance depending on the number of attendees. That means Ramer’s team is trying to book conventions now for late 2022, when the entire convention center will be operational.
“The response that we are getting from meeting planners has been fantastic,” Ramer said. “They are excited about the possibilities that this expansion opens up to us. We will have a larger ball room and for the first time more than 100,000 square feet of contiguous exhibit space.”
“We have been sitting at 66,000 square feet for a very long time,” Ramer said. That’s too small for many regional and national conventions. Louisville and other competitor cities have updated or expanded their convention centers in recent years, leaving Lexington at a disadvantage.
A study by Convention Sports and Leisure found the convention center generates $42 million a year in revenue through hotel stays and spending at restaurants and local businesses. If the convention center is expanded, that impact would grow to $57 million. Without an expansion, the center will continue to lose convention business and will eventually only generate $27 million a year, the study said.
“That new exhibit space is going to up new business opportunities that we have been able to pursue because of our limitations on space,” she said.
The new design opens up the convention center to downtown, Ramer said. More windows and more glass doors will allow convention attendees to see downtown. The current “big box” design is isolating.
“Twenty years ago it was about whether the date was open, the rate and whether you had space,” Ramer said. Now, meeting planners want a unique experience. “This (design) gives a conviction of place.”
Previous studies also cautioned the expanded convention center needed more downtown hotel rooms to accommodate larger conventions. The delay in the construction timeline has helped with that. With the opening in December of two Marriott hotels at City Center, Lexington will have the 400 hotel rooms needed for larger conventions, Ramer said.
This story was originally published January 3, 2020 at 10:10 AM.
