Dec 10, 2025 Economic Development and Arts Subcommittee Meeting Summary
Economic Development and Arts Subcommittee Meeting - December 10, 2025
This meeting of the Economic Development and Arts Subcommittee focused on a comprehensive update regarding the Phoenix Convention Center, visitor spending trends, and the critical need for additional downtown hotel capacity to maintain competitive standing against expanding U.S. destinations.
Consent Calendar
- Unanimously approved the minutes from the November 12, 2025 subcommittee meeting based on a motion and second.
Public Comments & Testimony
- Jenny Ann Sumner: Expressed appreciation for previous discussions regarding the refurbishment of public art at the Old Cross-Cut Canal Park from McDowell to Thomas Road.
- North High School Students (Derek Amador, Lucas Van, Angelina Reyes, Marcos Hernandez, David Lee, Stephanie Gonzalez, Andrea Quintana, Victor Mendieta, Liliana Lopez, Erith Johnson):
- Demand for Growth: The student body collectively expressed strong support for expanding the convention center, viewing it as essential for the city's economic future and job creation.
- Hotel Necessity: Students asked specific questions regarding the need for more downtown hotel rooms, with the group emphasizing that additional lodging (specifically 800-1,200 room hotels) is the single most effective action to boost convention attendance and competitiveness.
- Community Benefits: Angelina Reyes expressed neutrality initially, questioning if the development truly benefits local tax payers; Lucas Van and Stephanie Gonzalez inquired about specific plans to compete against Texas cities and potential property redevelopment for hotels.
- Local Vitality: Erith Johnson stated a position that more local community events are needed to make downtown vibrant for residents, arguing that if locals enjoy the area, visitors will be more interested.
- Career Interest: Students requested information on how the hospitality industry offers diverse career paths from architecture to zoology.
- Councilwoman Pastor: Emphasized the need to coordinate hotel availability with convention schedules to prevent room shortages and advocated for connected hotels to ensure walkability.
- Councilwoman Stark: Noted the positive experience of a relative attending a medical convention, highlighting the city's growth and downtown offerings.
Discussion Items
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Convention Center Impact & Economics:
- Jerry (Convention Center Rep): Stated that since the 2009 expansion, the center has seen a "build scenario" of 3.2 million attendees compared to a "no-build scenario" of 411,000, resulting in $5.2 billion in economic impact versus $587 million. A spend-per-attendee model of $1,428 was cited.
- Seasonality: Corrected the misconception that summer is slow, noting 72,000 attendees from four summer events (including Phoenix Fan Fusion and NCAA-related prep) and 10,000 from Clean Power in May.
- Upcoming Mega Events: Highlighted the upcoming NCAA Women's Final Four (April), NBA All-Star Game (Feb 2027), and the successful debut and anticipated return of Semicon West (2027) as key economic drivers.
- Hotel Shortage: Discussed a significant competitive disadvantage where Semicon West required bookings in 30+ hotels, some 6.1 miles away. It was noted that 276 meetings (977,000 attendees) were lost between 2021-2025 strictly due to a lack of downtown hotel rooms.
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Competitive Landscape:
- Ron Price (Visit Phoenix): Outlined aggressive expansions by competitors: Dallas ($4B rebuild), San Antonio ($1.5B), Austin (tear-down/rebuild), Houston ($2B + future elevation project), Los Angeles, Seattle ($2B), New Orleans, Denver, and Las Vegas.
- Space vs. Cost: Explained that discrepancies in square footage costs between cities (e.g., LA vs. New Orleans) are due to the type of space built (expensive ballrooms vs. cheaper expo space) and existing infrastructure.
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Strategic Directives & Future Planning:
- CSNL Study Recommendations: Referenced the CSNL study (updated recently) which recommended exploring an entertainment district, adding downtown hotel rooms, and expanding the convention center within 6-10 years.
- Master Plan: Discussed a conceptual master plan featuring a new South Building (replacing the single-story structure) with a physically connected 800-1,200 room hotel, potentially doubling to ~2,000 rooms based on current market demand.
- Cost Estimates: Estimated hotel construction costs at $70,000-$100,000 per key, with potential convention center expansion costs ranging from $600M to $800M.
- Investment Readiness: Council members noted that major hotel brands are "waiting for an RFP" and are anxious to invest in downtown Phoenix once the city provides a clear directive.
Key Outcomes
- Informational Presentation: The Convention Center and Visit Phoenix presentations were recorded as informational for discussion; no immediate vote was taken to approve the expansion or hotel project.
- Future Action Directive: The Subcommittee agreed to revisit the topic in March or April 2026 to discuss forward actions.
- Next Steps: The Council authorized the team to prepare and release a Request for Proposal (RFP) or Request for Qualification (RFQ) for a new downtown hotel and convention center expansion partnership to guide private sector investment.
- Student Engagement: Councilwoman Pastor facilitated a hands-on learning experience for the North High School government class, emphasizing the role of tourism in the local economy.
Meeting Transcript
Good morning and welcome to the December 10th, 2025 Economic Development and the Arts Subcommittee. I will call the meeting to order at 1003 and turn to our city attorney, David Benton, to discuss public comment. Thank you, Madam Chair. For citizen comment, members of the public may address the subcommittee for up to three minutes on issues of interest or concern to them. The open meeting law permits subcommittee members to listen to the comments or prohibits members from discussing or acting on matters presented. Madam Chair, in the event there's any sign-ups for agenda items, members may speak up to two minutes on agenda items. Comments must be related to the agenda item and the action being considered. Council and staff cannot discuss or comment on matters being related to planning investigations, claims of litigations. Additionally, if any member in the public who appears before the subcommittee in their capacity as a lobbyist, must disclose that fact to the subcommittee. Thank you, Madam Chair. Thank you so much, sir. And now I'd like to um introduce our interpreter, Elsie Dorte, and allow her an opportunity to introduce herself. Thank you, uh Madam Chair O'Brien. My name is El C Duarte, and I will be providing Spanish interpretation during today's economic development and arts subcommittee session. I will now take a moment to address our Spanish speaking audience. Thank you, Madam Chair. Thank you, I'll see. Our next item on our agenda is called to the public, and we have one virtual speaker, Jenny Ann Sumner. Do we have Jenny Ann? Okay, Jennianne, the floor is yours. Madam Chair, members of the subcommittee, I just want to express my appreciation for your consideration last month on an update to the refurbishing of the public art and the old cross-cut canal park from McDowell to Thomas Road. I look forward to the future update. Thank you. Thank you so much, Jenny Ann, for your testimony. Item one on our agenda is approval of minutes from the November twelfth, 2025 subcommittee meeting. Do you have a motion for approval? Move to approve. Second. We have a motion and a second. All those in favor, please say aye. Aye. Um any nays. Hearing none, the motion passes unanimously. Item number two on our agenda is the convention mark and we try that again. Thank you for the opportunity to come and give you an update on the convention center activity. And we also want to spend a little bit of time talking about the convention market in general. Joining me to my left is Ron Price, President and CEO of Visit Phoenix, who is a partner of ours in selling this destination. Really good partner, and uh you'll throughout this presentation you'll hear about some of the fruits of their labor as we move forward. So this morning, what I'd like to talk about is a little bit about visitor spending to give you an idea of the overall impact of the convention center on the market uh since the expansion was complete. I'll also spend a little bit of time talking about this past summer, which was a historic summer for us as far as activity is concerned at the convention center. Then I'll also spend a little bit of time talking about some upcoming events, some notable events that we'll have at the convention center. And then we'll spend some time talking about the competitive destinations, our comp set, to give you an idea of what is happening in the market in general, and then we'll have some time at the end for some questions. So when talking about the overall impact of the Phoenix Convention Center since the expansion, it's important to talk about the attendance, the number of people that have walked through our doors. Just to give you some brief background on the history, the convention center expanded with the final phase of the expansion being complete in 2009, and that resulted in a tripling of the convention center's space. At that same time, the downtown Sheraton Hotel opened, giving us a significant uh boost as far as our status in the market. And uh in 2009, that was the first year since the completion of expansion through 2023. You can see on the slide in front of you the amount of attendance that would have taken place at the convention center had we not expanded. And let me explain that. Uh for the the expansion, that it was funded by the state and the city. They both participated by contributing half of the money needed for the expansion.
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