City of Orlando Spends Big on Trade Show Booth Used Twice a Year

RECon Las Vegas DDB techmark booth

The Downtown Development Board trade show booth from Techmark Concepts, Inc at the Las Vegas RECon show. The booth is deployed twice a year and a new two-year contract will cost $150,000.

As the City of Orlando continues to struggle on successful retail revitalization downtown, one component of Mayor Dyer administration’s strategy has been consistent participation with two trade shows related to the International Council of Shopping Centers (ICSC). Over the last six years, the City has deployed an expensive trade show booth twice a year at the ICSC Florida show and the RECon show in Las Vegas.

City staff recently requested a new two-year agreement be signed with a local company, Techmark Concepts Inc, to renew the trade show efforts through fiscal year 2016. The Downtown Development Board (DDB) voted in favor of the staff request to fund a $150,000 trade show booth agreement on March 25th.

 Audio: Downtown Development Board – Trade Show Booth Request

The booth is 20 feet by 20 feet in size and staff claim the booth can accommodate three meetings simultaneously using small tables and chairs. Residents and taxpayers are not the only ones with questions about the $150,000 price tag.

One DDB member not familiar with the ICSC events asked if staff believed the City is getting the return on investment and questioned if it was worth that much money for the City of Orlando to have a booth. DDB Executive Director Thomas Chatmon answered by stating “it’s a question that I ask internally every year” and added “the answer so far has been yes.”

 Audio: Is The Trade Show Booth Worth The Money?

But in his extended remarks, Mr. Chatmon also stated there are additional costs associated with the trade show booth. The City must pay to send four employees to Las Vegas, including travel costs, which increase the final expense to close to $200,000 over two years.

The DDB also made it clear the previous success rate has been questionable at best, but staff blamed bad timing, citing the recession and troubled economic climate in previous years. Mr. Chatmon admits the DDB does not come home every year with a new vendor or a new contract. But Mr. Chatmon does state that the DDB receives many positive comments from people coming through and added locals are “happy” to see the DDB presence when they pass the booth.

 Audio: Past Results and Added Costs with Trade Show Booth

However, another DDB member pushed back against the answer, which included very few if any specifics from city staff. The DDB member stated private business would have to have the results to justify an expense like this. He added the board may need to re-evaluate if year after year the City is not closing the deal, seeming to apply some pressure to this year’s performance.

 Audio: Private Business Would Have To Have Results

During the larger discussion, the City also made another interesting claim attempting to justify the $75,000/year price tag for the booth alone. The City seemed to blame union labor for higher costs associated with the booth setup. Staff explained some of the funds are simply passing through to pay for required union labor, which they would have to pay no matter what vendor they chose.

Techmark’s portfolio shows a large number of trade show exhibits, meaning they likely are using overlap crews to assemble when multiple clients attend the same show, thus creating more profit. Staff admitted Techmark is incentivized to keep associated costs low in order to keep a larger profit, as they are simply capped at $75,000 per year.

 Audio: “So $75,000 Just To Do This Twice A Year?”

The ICSC calls itself the preeminent global retail real estate trade organization, with membership including developers, retailers, researchers, municipalities and other commercial real estate service providers. The City argued it is important for the DDB to keep a continued presence at the shows. Mr. Chatmon remains optimistic about the improving economy and likelihood for greater success in the coming years.

Accountability still matters on all expenses, especially considering property taxes were raised on residents by 17% last year. Even the Executive Director of the Downtown Development Board understands.

“I know if I was stroking the check, it would be a tough check to stroke personally, you know, every year,” Mr. Chatmon said.

 Audio: Tough Check To Stroke

 

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