Colorado will ante up $1.7 million to the Outdoor Retailer Show — matching the $1.7 million from Visit Denver — under an incentive package offered for the relocation of three large conventions from Salt Lake City to Denver.
The Colorado Economic Development Commission this week formally approved the cash award, which is coming out of the state’s strategic fund and is contingent on three outdoor retail conventions coming to Denver each of the next five years.
“The state normally wouldn’t get involved in financing a trade show,” said Luis Benitez, the head of the Colorado Outdoor Recreation Industry Office.
But each show is expected to bring in 20,000 to 25,000 attendees, with the potential to generate $45 million each in direct and indirect economic benefits, Benitez said.
And the shows are expected to boost the state’s reputation as a hub for the outdoor recreation industry, which in turn has the potential to bring company relocations and boost the economy in rural parts of the state, he said.
Emerald Expositions, which owns the three shows, will receive the money to cover costs associated with relocating the shows after a two-decade run in Salt Lake City. Utah officials had said, at least in public, that it was willing to provide $1 million to retain the shows.
Moving to Denver came with added costs, hence the larger incentive package. The extra payout is attributed to the transport of large amounts of equipment now parked in Utah; labor tied to unionized convention center workers in Denver; and marketing to attract visitors to the new venue.
Another big expense centers on rescheduling already booked conventions. Visit Denver, which is currently booking 10 years out, needed to juggle the schedule some to add the shows, said president and CEO Richard Scharf. Visit Denver oversees the Colorado Convention Center.
Normally, a group that makes a late booking for a convention would cover the costs associated with bumping another group, assuming the other party could accommodate the move.
“We have strong relationships with our customers,” Scharf said. “But it doesn’t hurt to offer them an incentive.”
The state money will be distributed over the next two fiscal years, while Visit Denver’s money will be paid out over five years. A portion of those distributions will be contingent on the ability of Emerald to meet targets for attendance and hotel room bookings.
The three shows include a combined Outdoor Retailer-SnowSports Industries America Snow Show in January, a summer show in June and a winter show in November.
“We don’t anticipate them going anywhere after year five,” Scharf said.
In other incentive awards, the Colorado Economic Development Commission offered $22.7 million to two Bay Area companies looking at bringing a combined 1,417 jobs to Denver County.
A financial lender is looking at Colorado, Arizona and Utah as locations for 1,027 jobs paying an annual average wage of $94,182. Another travel industry technology company is looking at locations in Denver, Utah and Oregon to consolidate 390 new jobs from Mexico and the Bay Area. Those jobs would pay an average $105,000 a year.
