Photo courtesy Sun Journal


The Convention Center



BACKGROUND:

As Bates Mill is a crucial element in the economic viability and revitalization of both downtown Lewiston and Auburn, so, too, is Mill #5 crucial to the success of Bates Mill itself. It is the largest and most unique of the mill buildings and therefore the most versatile in terms of potential uses.

With more net available square footage than the Auburn Mall, the ultimate usage of Mill #5 will characterize the entire Mill complex, positioning the mill to potential tenants, customers, the local communities, the general public. A number of alternatives were considered prior to selection of the convention and exhibition center premise, including both major retail and manufacturing.


RETAIL OPTION:

The retail industry has been shrinking in scope throughout the decade of the '90s, with consolidations, mergers and the net closure of many long time retail brands. Industry rese arch suggests that the Lewiston-Auburn area is too close to both Freeport and Kittery to become a viable outlet destination on its own merits. In addition, local research has identified a pattern of "retail drift" that has resulted in much high-end retail activity by L-A area residents having moved beyond the Twin Cities. Reversing this trend would only be the first of many laborious stage s in the process of making the mill a viable retail venue of a magnitude necessary to fill the kind of space represented by Mill #5.


MANUFACTURING OPTION:

The loss of manufacturing jobs in Maine and especially in the Lewiston-Auburn area in the past 20 years (albeit with certain key exceptions) has been thoroughly documented and examined. It is abundantly evident that this area -- just as the rest of New England and, indeed, the nation as a whole -- is in the midst of a conversion from an industrial-based economy to a service-based economy. Even if it were feasible for the Mill project to reverse this trend with any degree of magnitude, the structure itself is not ideally suited for use for high-tech manufacturing. The costs of converting the facility would likely exceed the costs for new construction, and the historically valuable qualities of the mill are of no use to modern manufacturing.


THE CONVENTION CENTER:

Of the three likeliest uses for space the size and configuration of that represented by Mill #5, only the convention and exhibition industry has been experiencing steady and significant growth (see Table 1: "Scope of the Exhibition Industry"). At the same time, New England has lagged somewhat behind the rest of the country in the extent to which it has been impacted by the exhibitions industry due to lack of appropriate facilities. There is no single-purpose (i.e., not also used as a sports arena or performance center) convention center in New England, north of Boston; certainly none that can meet the anticipated need for an average of more than 130,000 net square feet of exhibit space, and none with the state-of-the-art technology and communications accouterments that are becoming increasingly mandatory.

Moreover, combining the convention center with a core of office/operations space users provides a distinctly business-oriented flavor to the entire Mill complex (vs. a consumer orientation, for example). That, in turn, helps clarify the messages to be conveyed to potential users of the mill that this is a property designed for business efficiency.

The theme "Leading the way to the post industrial age" captures the spirit of a business-oriented connection between the historical values and work ethic of the past with the technological opportunities of the 21st century. Business is what the mill is all about; this is not a mall or other consumer-driven enterprise. It is a venue for serious business use.

A convention center anchor, commensurate with the theme line, also complements corollary attributes of arts and education, which along with a sense of historical preservation are also deemed vital to the successful development and marketing of the entire complex.

The advent of the "Forum Francophone des Affaires" adds further dimension to the prospects for a successful convention and exhibition center. With major international conferences rotating among the various FFA headquarters communities (1997 scheduled for Ho Chi Minh City, Viet Nam), the potential to attract a session to Lewiston soon after completion of the convention center is excellent. It would, furthermore, be entirely logical for Mill #5 to house the U.S. headquarters of the FFA along with the anticipated trade consulates of its member nations, in addition to the convention facility itself.


FEASIBILITY:

The Lewiston Mill Redevelopment Corp, through its marketing consultants Austin Associates, PA, commissioned the international consulting firm of Coopers & Lybrand, LLC to conduct a study that would measure the feasibility of a convention center in Lewiston. Coopers & Lybrand is among the foremost experts in the exhibitions and convention industry.

They were asked to forecast activity and traffic that could reasonably be expected in a Lewiston-based facility that meets the nees of the conventiions industry (in terms of infrastructure, access to lodging, etc.).

The conclusions from that research (see Table 2: "Minimum Expectations for the Bates Mill Convention Center") suggest that there is a significant market opportunity (measured prior to the decision by the FFA to locate in Lewiston) that is not currently being serviced in the Lewiston-Auburn area, including a component (nearly two shows a year, at a minimum, of national or international magnitude) that is not being serviced anywhere in Maine (See Table 2-A). While the projected 23.5 events per year are expected to yield some $6.25 million in total spending, there is evidence that that number may be understated. For example, the recent Harley Davidson convention in Portland was estimated to account for nearly $3 million in total spending (for a single event).


OBJECTIVES:

Although research corroborates the assumption that there is a meaningful market for a convention facility in the Lewiston-Auburn area, it is our intentionto exceed the minimum levels of utilitzation that have been forecast. Certainly the addition of the FFA suggests new market opportunities that were beyond the scope of the research initiative. That supposition corresponds with the conclusions reached by the Trade Show Bureau, in its publication "How Target Research Can Materially Improve Convention Marketing Center Efficiency." That study suggests that marketing efficiency can be enhanced by concentrating on specific target audiences of potential users, and outlines some of the more effective techniques for so doing.

The robust projections for the exhibitions industry in total, the consideration that new facilities will experience a growth rate that exceeds that of mature facilities (prime dates have not already been reserved well into the future, for example), combined with an exhaustive search of secondary data sources for suggestions about how best to improve center utilization suggest, collectively, that the expectations delineated in the table "Five Year Objectives for the Bates Mill Convention Center," (Table 3) are entirely realistic.




TABLE I

SCOPE OF THE EXHIBITION INDUSTRY MARKET


1997
trade
shows		 1997
consumer
shows		 1997
average
show		 2000
average
show
Average Attendance 10,503 50,187 10,523 27,560
Aver. # Exhibiting Cos. 425 235 385 470
Aver. Exhibit Space (sq.ft.) 105,500 109,100 106,250 131,900

SOURCES: Center for Exhibition Industry Research, 1997





TABLE 2

MINIMUM EXPECTATIONS FOR THE BATES MILL CONVENTION CENTER



SOURCE: Coopers & Lybrand proprietary research, 1997
Commissioned by Austin Associates, PA.





TABLE 2-A

POTENTIAL SOURCES OF CONVENTIONS AND EXHIBITIONS






TABLE 3

FIVE YEAR OBJECTIVES FOR THE BATES MILL CONVENTION CENTER

SOURCE: Austin Associates projections,
Coopers & Lybrand research,
Center for Exhibition Industry Research data and other industry indicators

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