* Fran Spielman…
The pandemic-induced shutdown of Chicago conventions has already cost the city and state $233.8 million in lost tax revenue and the red ink at McCormick Place will keep piling up until fiscal 2024, the Metropolitan Pier and Exposition Authority board was told Tuesday.
McCormick Place held its last convention on March 6, 2020. Since then, losses have been staggering: 230 canceled events that would have drawn 3.4 million attendees; 2.2 million lost hotel room nights; $3.05 billion in lost economic impact; and $233.8 million in lost state and city taxes. […]
That helps explain why Chief Financial Officer Jason Bormann convinced the board to approve a revised three-year financial plan that rather conservatively assumes McCormick Place will not return to full capacity until fiscal 2024.
Instead, the plan calls for a more gradual ramp-up: 25% in the first quarter of fiscal 2022, which starts in July; 50% capacity in the second and third quarters; 75% capacity in the fourth quarter and for all of the 2023 fiscal year, before hitting 100% in July 2023, the start of the 2024 fiscal year.
More at the link.
* CBS 2…
More than $3 billion – that is how much revenue was lost at McCormick Place during the pandemic shutdown. […]
As of last week, 230 events had been canceled – and they would have attracted about 3.4 million attendees and nearly 2.2 million hotel room nights if they had gone ahead. […]
For the month of March, the Metropolitan Pier and Exposition Authority reported a net operating loss of about $7 million – but that was about $2 million under what they were projecting.
McCormick Place said right now they have 48 events scheduled between July and December 2021.
- dan l - Wednesday, Apr 28, 21 @ 9:12 am:
THIS IS WHY PEOPLE ARE FLEEING THE STATE IN THE GREAT ILLINOIS EXODUS oh wait n/m.
- Oswego Willy - Wednesday, Apr 28, 21 @ 9:17 am:
- dan l -
If you’d stop “yelling” and use your words like an adult and not in a drive by screech you’d make more sense.
To the post,
It’s the damaging ways this pandemic caused city and state problems should be a no brainer that economic help from the feds was needed and necessary.
Yet… the politicizing of aid to states, even our own Trumpkin members of congress voting against state aid make these type of revelations even more damaging beyond the dollars lost.
It’s the virus that caused this.
- Iron Skillet Justice - Wednesday, Apr 28, 21 @ 9:23 am:
2024? Makes no sense, but we reap what we sow.
- 1st Ward - Wednesday, Apr 28, 21 @ 9:45 am:
“the politicizing of aid to states”
Congressional Dems played their role as well. Republicans in Congress wanted a liability shield for employers in exchange for State & Local aid. Certain Democrat Governors enacted these liability protections in their States even though Congressional Dems wouldn’t budge on this point.
- Oswego Willy - Wednesday, Apr 28, 21 @ 9:47 am:
=== Certain Democrat Governors===
Rush Limbaugh would be proud…
Which certain governors?
Thanks.
- Pundent - Wednesday, Apr 28, 21 @ 9:54 am:
I suspect that 2024 may be correct. We’re going to be held back by vaccine hesitancy. And as cases continue people will be less likely to resume what were once considered normal activities. One of my last pre-pandemic outings was the 2020 auto show. I can’t see myself attending that type of event for some time to come.
- Hobart - Wednesday, Apr 28, 21 @ 10:01 am:
We don’t need McCormick Place. It’s only for wealthy people to come to Chicago and clog up our roads.
Why don’t we turn it into a homeless shelter, so that it is truly serving the people of Illinois? After all, we built it with our tax dollars. We should get the full benefit of it.
- Oswego Willy - Wednesday, Apr 28, 21 @ 10:09 am:
=== Why don’t we turn it into a homeless shelter, so that it is truly serving the people of Illinois? After all, we built it with our tax dollars. We should get the full benefit of it.===
McCormick Place was utilized as a field hospital in the event the Covid pandemic overwhelmed hospitals.
Did you forget that, or were you ignoring that?
Tax dollars are also for keeping society prepared, like in that instance too.
- Amalia - Wednesday, Apr 28, 21 @ 11:08 am:
this industry has so many ripple effects, performers, caterers, riggers, production professionals, so many people I know who are suffering from huge business loss. it’s not just about the conventions themselves,it’s about all that happens attached to the convention. mask up, get vaccinated, get us back to where we were before.
- ChicagoBars - Wednesday, Apr 28, 21 @ 11:49 am:
Pre-emptive point of order: Orlando has very few shows going on so far, and Las Vegas doesn’t have it’s first major one, World of Concrete, until June and right now they’re looking at about 50-60% of usual # of exhibitors for that first show.
So it’s bad everywhere for conventions and trade shows and 2024 seems pretty realistic for a return to 2019 levels of business right now. Long recovery ahead.
- EssentialStateEmployeeFromChatham - Wednesday, Apr 28, 21 @ 12:16 pm:
==I suspect that 2024 may be correct. We’re going to be held back by vaccine hesitancy. ==
Plus also there’s people (me included to some extent) that after this long COVID ordeal is over, have resolved to never, ever go back to a large-scale event (e.g., concerts, conventions, State Fair even), eat at a restuarant, go to a ballgame, use public transportation, etc. ever again after this pandemic unless unavoidable.
It could very well be that getting my 2nd vaccine at the Orr Building earlier this month could be the last time I ever set foot in the State Fairgrounds. And I’m still in my early 40s.
- Chicago 20 - Wednesday, Apr 28, 21 @ 12:52 pm:
The MPEA was heading this way after the multiple bond refinancing and debt extensions, long before COVID.
The MPEA reported $158,915,000 in Authority tax revenue in the COVID free FY 2019, which ended June 2019 and $118,851,000 in FY 2020 which is a decline of $40,064,000.
Now, somehow the MPEA is reporting it lost $233.8 million in tax revenue which they are blaming on COVID, which is also $74,885,000 more than the MPEA ever received in Authority tax revenue in a FIscal Year.
The $12 billion MPEA bond debt is paid by the MPEA Authority tax revenue. This bond debt has been refinanced and extended the terms multiple times. This year’s bond payment is $230,042,000 which is $71,127,000 more than the MPEA tax revenue in the last year without COVID, FY 2019.
So in reality, the MPEA knew that they were going to be short of revenue after the last refinancing of the bonds,
Two years ago the MPEA tried to expand the boundaries of the MPEA restaurant tax which then failed to pass in the State House.
In just a few years the MPEA bond debt ramps up, and up, and up again to $347,241,800 per year. The current yearly debt repayment schedule deficits adds up to over $6 billion in shortages over the term of the loans.
The State of Illinois guarantees the MPEA debt with sales tax revenue.
COVID is this year’s MPEA scapegoat.