WEBVTT 1 00:00:00.000 --> 00:00:05.805 >> HELLO AND WELCOME TO "INSIDE INDIANA BUSINESS." I'M GERRY DICK. A BIT OF A CONTROVERSY MAY BE 2 00:00:05.805 --> 00:00:10.944 BREWING AS STATE LEGISLATORS DISCUSS A BILL THAT WOULD INCREASE FUNDING FOR THE CAPITAL IMPROVEMENT BOARD AND FUEL 3 00:00:10.944 --> 00:00:19.652 IMPROVEMENTS TO BANKER'S LIFE FIELDHOUSE, EXPAND THE INDIANA CONVENTION CENTER AND HELP FUND TWO MAJOR NEW DOWNTOWN HOTELS. 4 00:00:19.652 --> 00:00:27.193 BUT SOME ARE NOW QUESTIONING IF DOWNTOWN INDY NEEDS MORE HOTEL ROOMS. JOINING US WITH MORE IS DAVE 5 00:00:27.193 --> 00:00:32.732 SIBLEY, SPOKESPERSON FOR A GROUP OF HOTELS QUESTIONING THAT PLAN. DAVE, WELCOME TO THE PROGRAM. >> THANK YOU FOR HAVING ME. 6 00:00:32.732 --> 00:00:38.004 >> LET'S TALK ABOUT THE OPPOSITION THAT YOU AND SOME OTHER HOTELIERS HAVE TO THIS PLAN. 7 00:00:38.004 --> 00:00:44.978 IT WOULD EXPAND ROOMS DOWNTOWN BY ABOUT 1400 ROOMS, TWO HILTON BRANDED HOTELS WOULD BE A PART OF THAT PACKAGE. 8 00:00:44.978 --> 00:00:51.618 WHY ARE YOU OPPOSED TO THE PLAN AS IT STANDS? >> WELL, GERRY, WE'RE CONCERNED ABOUT THE NUMBER OF ROOMS THAT 9 00:00:51.618 --> 00:00:59.426 ARE GOING TO BE ADDED INTO THE MARKET AND ALSO THE INFRASTRCTURE THAT GOES ALONG WITH THOSE ROOM NIGHTS. 10 00:00:59.426 --> 00:01:09.169 IF YOU RECALL 2000, THE EXPANSION, 615 ROOM MARRIOTT, PLUS THEY ADDED 100,000 SQUARE FEET OF MEETING SPACE AT THE 11 00:01:09.169 --> 00:01:18.278 CENTER AND WE ALSO ADD 45,000 AT THE HOTEL. IN 2011, THEY ADDED THE THOUSAND FIVE-ROOM JW. 12 00:01:18.278 --> 00:01:25.985 THEY HAD 105,000 SQUARE FEET OF MEETING SPACE AND ALSO THERE WAS 317,000 SQUARE FEET BY THE CONVENTION CENTER. 13 00:01:25.985 --> 00:01:32.525 TODAY WHAT THEY'RE PROPOSING FOR 2023 IS THAT THEY'RE ONLY GOING TO ADD 80,000 SQUARE FEET OF MEETING CENTER AT THE CENTER AND 14 00:01:32.525 --> 00:01:38.898 THAT THE HOTEL FOR 1414 ROOMS IS GOING TO HAVE ZERO AND THEY'RE GOING TO HAVE TO LEASE THAT AND SHARE THAT UNDER CERTAIN 15 00:01:38.898 --> 00:01:42.836 CONDITIONS. >> SO YOU FEEL AS THOUGH THERE'S NOT ENOUGH CORRESPONDING EXPANSION IN THE CONVENTION 16 00:01:42.836 --> 00:01:50.543 CENTER TO OFFSET THAT INFLUX OR INCREASE IN HOTEL? >> WE THINK THERE'S WAY TOO MANY HOTEL ROOMS TO BEGIN WITH. 17 00:01:50.543 --> 00:01:59.385 IF YOU FROM 2012 TO 2018, THERE'S 5.5% GROWTH IN THE MARKET, WE ADDED 364 ROOMS DOWNTOWN, WE'RE NOW TALKING IN 18 00:01:59.385 --> 00:02:06.125 THE NEXT SIX YEARS OF ADDING 2741 ROOMS, OR ABOUT THE SIZE OF THREE JWs. WE DON'T THINK THAT THAT'S 19 00:02:06.125 --> 00:02:13.867 SOMETHING THAT WE CAN DO IN THAT SHORT PERIOD OF TIME. >> ONE OF THE HOTELS WOULD BE A NEWLY BRANDED -- A NEW BRAND FOR 20 00:02:13.867 --> 00:02:21.374 HILTON, A LUXURY HIGHER LEVEL BRAND THAT IS TARGETED TOWARD MEETING PLANNERS AND OTHERS. CHRIS GALL FROM VISIT INDY, WE 21 00:02:21.374 --> 00:02:28.047 ASKED HIM ABOUT THE NEED FOR MORE HOTEL ROOMS DOWNTOWN AND THIS IS WHAT HE HAD TO SAY. >> IT'S NOT JUST ABOUT RETAINNG 22 00:02:28.047 --> 00:02:31.117 CONVENTIONS. THAT WOULDN'T BE A SMART BUSINESS MOVE. IT'S ABOUT GROWING CONVENTION 23 00:02:31.117 --> 00:02:40.059 BUSINESS. OUR RESEARCH SHOWS THAT WE WILL MOVE FROM BEING ABLE TO HOST -- BID TO HOST 75% OF THE TOP 250 24 00:02:40.059 --> 00:02:45.298 CONVENTIONS IN THE NATION TO 82% OF THOSE BEING OFFERED IN THE UNITED STATES. SO IT OPENS UP OUR PORTFOLIO. 25 00:02:45.298 --> 00:02:52.005 WE CAN OPEN OUR STANCE AND SAY, HEY, LET'S RESTART THOSE DISCUSSIONS ON THOSE WHO HAVE BID TO PASS ON HOSTING 26 00:02:52.005 --> 00:02:58.811 CONVENTIONS IN INDIANAPOLIS AND THOSE WE DIDN'T HAVE ROOM AND SPACE FOR PREVIOUSLY. >> SO DAVE, THEY'LL SAY IT'S NOT 27 00:02:58.811 --> 00:03:08.087 ONLY ABOUT KEEPING BUT ATTRACTING NEW AND IT SAYS THIS HOTEL OR HOTELS OPEN IN 2023 WOULD BE BACK TO NORMAL 28 00:03:08.087 --> 00:03:15.929 OCCUPANCY DOWNTOWN IN JUST THREE YEARS. >> ONE, AS I DON'T BELIEVE -- I'VE READ THE HVS REPORT. 29 00:03:15.929 --> 00:03:22.602 ALSO IN THERE IT SAID FOR A CONVENTION HOTEL OF THAT SIZE, THEY SHOULD HAVE 80 TO 100 SQUARE FEET OF 30 00:03:22.602 --> 00:03:29.108 MEETING SPACE PER GUEST ROOM. AND WHAT WE'RE SEEING IS THAT THERE'S ONLY 56 SQUARE FEET OF MEETING SPACE AND THEY HAVE TO 31 00:03:29.108 --> 00:03:34.781 SHARE THAT WITH THE CONVENTION CENTER. AND THAT THEY'RE PREDOMINANTLY GOING TO TAKE ONLY 51% OF THEIR 32 00:03:34.781 --> 00:03:41.087 BUSINESS IS GOING TO COME FROM GROUP WHERE THE JW HAS 70%, AND THEY DON'T HAVE THE SPACE TO CONTROL THAT. 33 00:03:41.087 --> 00:03:46.893 THEY'RE GOING TO GO AFTER THE BUSINESS TRAVELER DOWNTOWN AND TAKE AWAY FROM OTHER HOTELS. WE'RE NOT EXPANDING THE MARKET. 34 00:03:46.893 --> 00:03:53.833 >> SO -- AS WE WRAP UP HERE, WHAT DO YOU WANT TO SEE HAPPEN HERE? >> THE HOTEL OWNERS WOULD LIKE 35 00:03:53.833 --> 00:04:02.208 TO COME TO THE TABLE AND MEET WITH THE PACERS, THE CITY CIB, VISIT INDY, AND WHAT CAN WE COME UP WITH AS THE BEST SOLUTION TO 36 00:04:02.208 --> 00:04:05.411 SOLVE EVERYONE'S PROBLEMS? WE WANT TO MAKE EVERYONE A WINNER. >> ALL RIGHT. 37 00:04:05.411 --> 00:04:11.284 SENATE BILL 7 AT THE INDIANA STATEHOUSE UP FOR MORE DISCUSSION I BELIEVE IN THE WEEK AHEAD, THE PACERS AND BANKERS 38 00:04:11.284 --> 00:04:15.855 LIFE FIELDHOUSE INVOLVED IN THAT PLO PROCESS AS WELL.