Pensacola Bay Center needs millions in repairs and upgrades. Is it worth the cost?

The Pensacola Bay Center has been a fixture in the community for almost 40 years, a venue for shows of all kinds from monster trucks to Michael Jackson, as well as graduations, sporting events and expos.

However, for much of that time the Bay Center has operated at a loss, all while the building continues to age and compete with more modern venues for national acts, as well as local entertainment options.

Now county leaders are deciding if it’s worth putting more money into the Bay Center and if so, how much more.

“There is some appetite to do some much-needed upgrades at the Bay Center, and maybe some options to where the management company puts some skin in the game, even to the point where it would help us eliminate the subsidy to the Bay Center out of the TDT (Tourist Development Tax),” said Escambia County Administrator Wes Moreno.

Part of the purpose of the Tourist Development Tax is to fund publicly owned and operated facilities like the Pensacola Bay Center – including convention centers, sports arenas, and auditoriums – but a recent comprehensive assessment of the Bay Center found that while its serving its purpose as an entertainment venue and meeting space, it will take tens of millions of dollars in major upgrades and repairs to keep it “relevant” in the coming years.

Escambia County budgeted $8,845,000 for expenses related to the Bay Center for 2023-2024, which is consistent with past years. The county has spent about $5 million to $8.5 million annually on operating expenses for the facility since 2018. That’s far short from the millions more the study said the facility needs to repair or replace infrastructure and equipment.

According to a 20-year capital expense matrix included with the report, in the next seven years alone it would cost an estimated $72.5 million to repair, replace or upgrade equipment and infrastructure for items like fire protection, technology, elevators, roofs, food and beverage service, as well as furniture and fixtures.

Estimated costs for the same expenses over the next 20 years are nearly $140 million.

Moreno said county are leaders are still in discussions and he didn’t go into specifics for possible plans, but said the county is pleased with how Los Angeles based venue and event management company ASM Global has run the Bay Center and they want to work with them to continue making the most of the facility at a lower cost.

For that reason, Escambia County commissioners agreed to pay an additional $49,000 to Populous Inc., a global architectural and design firm that specializes in convention centers and arenas, to provide “greater details and refine the capital expenditures” of the original assessment of the Bay Center.

“I think with some of the options that we've seen there are some pretty cool conceptual things that we can do at the Bay Center that would still keep us relevant, I believe without having to hopefully subsidize it as much,” Moreno said.

Is the Bay Center a good investment?

When it comes to meeting and conference space, the Pensacola Bay Center is the only venue its size downtown for mid- to large-sized events, especially since the closure of New World Landing.

The Pensacola Bay Center still attracts big crowds for events like high school and college graduations, Ice Flyers games, and home-grown pop culture convention Pensacon, which draws thousands to the city each year.

Pensacon’s Director of Media and Guest Relations Julio Diaz says while an even larger venue would be beneficial, the Bay Center continues to meet a need in the community and losing it would be a concern.

“The fact that we're able to have Pensacon in that building is nothing short of amazing,” Diaz said. “Meeting space is at a premium in Pensacola. There’s a need for that kind of meeting space and there are so many different organizations that use it for different events.”

There are a few other options within driving distance. The Hilton on Pensacola Beach has space for mid- to large- sized conferences. Otherwise, the closest option for conferences is Sandestin in Okaloosa County. With 1,000 beds and two venues, Sandestin can host two major conferences at time.

Previously: Pensacola Bay Center needs millions in upgrades to stay 'relevant,' report finds

Pensacola State College recently received budget approval from Florida legislators for $13.4 million to build a nearly 11,000-square-foot training and conference center on the college’s main campus.

The city of Mobile, Alabama, also just announced plans to demolish the 60-year-old Mobile Civic Center Arena, expo hall and theater, and replace it with a new $300 million arena to host events like Mardi Gras balls, sporting events and concerts.

Even with those options, University of West Florida HAAS Center Director Nicole Gislason says the data shows money spent on improving the Pensacola Bay Center will pay off in the long run, in part because of its location in bustling downtown Pensacola.

Gislason said visitors to Pensacola, whether families on vacation or overnight guests here for business or a single event, often prefer to be closer to the central business and entertainment district downtown, just like young people and other locals do.

“Our opportunity in downtown Pensacola is to enhance that guest experience,” Gislason said. “Whether they're day trippers or overnight guests traveling for business or pleasure, we can enhance their experience by providing them with more entertainment options at an improved arena and host more business events at a conference center. My hope is that we'll improve the arena space we have at the Bay Center and consider adding conference facilities nearby or adjacent to the existing Bay Center.”

There’s no timeline on when decisions will be made regarding funding and upgrades to the Pensacola Bay Center, but Moreno said they’ll know more after the results of the latest assessment.

This article originally appeared on Pensacola News Journal: Escambia County funds Pensacola Bay Center study to plan future