Extension sought for grant program helping mid-size convention centers compete
A state bill seeking a two-year extension of a grant program helping mid-size convention centers in Illinois, including those in Schaumburg and Lombard, pursue events now held in other states has moved from the House to the Senate this week.
The goal of the proposed extension is to show a true five years of benefit from the grant program, said Dave Parulo, president of the Schaumburg-based regional visitors bureau Meet Chicago Northwest.
Though the Tourism Promotion Fund bill signed into law by Gov. Bruce Rauner in 2015 created a five-year pilot program, many convention and conference organizers book their events years in advance, Parulo added.
Because of that, the first two years of the grant program weren't able to achieve the immediate success first envisioned, he explained.
But nearly three years later, the Renaissance Schaumburg Hotel and Convention Center is one venue that's realized some recognizable gains - including three 2017 conventions, nine yet to come, and about 16,000 room-nights.
The three conventions last year were recruited from St. Louis, Houston and Kansas City. Together they generated direct revenue of about $950,000 for the Renaissance, Schaumburg Village Manager Brian Townsend said.
That came from using the grant money to offer direct incentives of less than $15,000 each to the show organizers.
"From such a small investment, we're seeing big returns," Townsend said.
The Illinois Department of Commerce and Economic Opportunity grant program works by providing a refund of up to 80 percent of the hotel tax money qualifying facilities have already paid the state from such events, with an annual limit of $200,000.
Schaumburg's reimbursement from 2017 will be $31,600.
To qualify, facilities must be publicly owned, include a hotel, and have from 30,000 to 125,000 square feet of exhibition space.
Nine centers in Illinois are eligible - the only suburban ones being in Schaumburg, Lombard and Tinley Park.
Democratic state Rep. Fred Crespo of Hoffman Estates was sponsor of both the original and current bills. He said he didn't know if all eligible venues have availed themselves of the program equally, but that Schaumburg certainly had benefitted.
"For Schaumburg, it's worked out beautifully," he said.
One of the requirements of the program is that the venues document the business they would not have had without it, Crespo said.
The 2015 bill's support continued all the way to the governor's desk, and Parulo said he's heard of only broad support for the requested extension.
He added that he's pleased legislators are recognizing such programs help create a level playing field with the incentives other states offer.
Lombard officials could not be reached for comment.