Financial Information

The State of the Convention Center, Fiscal 2009

While our state has felt the impact of the worldwide economic recession, the Washington State Convention Center has so far weathered the financial downturn with higher than anticipated revenues. A solid backlog of events and a limited number of cancellations enabled the Center to a post a $2,382,441 positive bottom line for fiscal 2009. The board of directors heeded early indications of the financial downturn and authorized exceptional actions to offset an expected decline in revenues. These actions included reductions in utility consumption, goods and services, and a state-mandated wage and hiring freeze to bring expenses in much lower than originally budgeted.

It is important to note that even with these expense reductions, the Center did not cut back on its aggressive capital improvement program for the facility. Updates included replacing the original 20-year-old HVAC chillers, resurfacing a major portion of the expansive roof, upgrading elevators and replacing components of the grand escalators in the South Lobby. As we have consistently stressed in this report over many years, our building is our business. Keeping the facility in outstanding condition-along with retaining a dedicated staff that provides exceptional service-is the only way our Center can compete with the many newer and larger buildings in the western United States.

Looking to the future, the Center and its supporters were disappointed that approval for the expansion of the facility was not forthcoming during the previous legislative session. As requested, we have provided a new set of studies to the Legislature and look forward to receiving authorization to continue to move the expansion process forward. We believe expansion is the best possible course to maintain the Center as a viable economic development entity for the state. To meet demand in the meantime, The Conference Center will add 71,000 square feet of distinctive meeting space to the Convention Center complex. Located at Eighth and Pike, the new facility is scheduled to open in July 2010.

The Center will continue to manage expenses to offset what we anticipate will be a significant reduction in revenues for fiscal 2010. With the end of the recession uncertain, the recovery of our industry will be slow, and it is likely that our bottom line will be negatively impacted next year.

Sincerely,

John Christison
President

WSCC Financials