Cobo authority OK’s plan calling for upgrades, more floor space at Detroit convention center

By AP
Thursday, July 1, 2010

Plan to upgrade, expand Detroit’s Cobo Center OK’d

DETROIT — A strategic plan commissioned by the board overseeing the operation of Detroit’s Cobo Center recommends short-term updates for the aging convention center.

The plan, approved Thursday by the Detroit Regional Convention Facility Authority, said adding significant floor space to Cobo should not be a “near-term priority.”

Cobo is home to the North American International Auto Show, an event held each January that attracts thousands of visitors and reportedly brings millions of dollars into the region. Show organizers have said Cobo needs to be larger if the event is to remain competitive.

But the plan put together by Convention, Sports and Leisure International recommends only 25,000 to 50,000 additional square feet of flexible space for exhibits, general sessions and food serving functions.

In January 2009, Democratic Gov. Jennifer Granholm signed into law legislation calling for $288 million to be spent on a Cobo expansion, and increasing the center’s 700,000 square feet of convention space by 166,000 square feet.

Cobo now can accommodate about 90 percent of the existing national convention and trade show industry, according to the strategic plan’s research.

“I believe the Authority’s goal is to improve Cobo’s bottom line and make our city more competitive and that, in itself, translates to greater income for the region,” Rod Alberts, executive director of the Detroit Auto Dealers Association, said in a release.

Proposed work includes reconfiguring the south end of the downtown convention center, extensive upgrades to other parts of the building, and larger meeting areas and ballroom space.

The improvements should help increase the amount of revenue generated by Cobo, which the Convention, Sports and Leisure International study says is low compared to other convention centers.

“An immediate needs expansion in the short-term allows us to best serve our customers today while paying close attention to market demands,” Authority Chairman Larry Alexander said in the same release. “The next step is to transform Cobo Center into a destination location for local residents and national visitors, which will generate more revenue for the facility to operate well into the future.”

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