Syracuse's Oncenter retools business model in effort to boost convention traffic

Responsibilities trimmed so staff can focus on bringing visitors to city.

Onondaga County officials laid out a plan Thursday to reform the operation of the county convention center, which struggles financially and brings in about half as many conventions as similar facilities around the country.

The number of people attending conventions and trade shows at the Oncenter complex dropped from about 120,000 a year in the late 1990s to roughly 40,000 in 2008 and 2009, Oncenter officials said.

Out-of-town business represents only 20 percent of Oncenter's traffic, while the industry average is about 40 percent, said Terri Toennies, president and CEO.

To help turn things around, the county executive's office seeks changes in the county's management agreement with Oncenter, a special-purpose corporation that runs the convention center and other county facilities. The new agreement would relieve the organization of certain operating costs while also demanding better performance.

Saying the convention center had become "a glorified banquet hall," Deputy County Executive William Fisher briefed county legislators Thursday on the proposed changes. Many of the changes grew out of an audit last month by Comptroller Robert E. Antonacci II.

The new compact, strongly supported by Toennies, is intended to streamline the operation so that the staff can spend more time and money attracting visitors to Syracuse.

The Legislature's five-member Planning and Economic Development Committee approved the measure, which will likely go to the full Legislature in September.

Among the highlights:

• Oncenter would no longer be responsible for building maintenance and repairs, which county officials say they can handle more efficiently. If the Legislature approves the change, Oncenter's eight maintenance workers will have an opportunity to apply for county jobs, Toennies said.


• Oncenter would no longer operate the county cafeteria in the Civic Center, where it loses more than $100,000 a year. Following a request for proposals, the county is negotiating with a private vendor to take over the operation, perhaps as early as October, Fisher said. Oncenter's 10 cafeteria workers would be invited to apply for jobs with the vendor, Fisher said.


• Oncenter would no longer pay for county-generated steam and chilled water at the convention center and War Memorial, a bill that runs more than $500,000 a year. Oncenter will continue to pay its own electric bills.


• Oncenter will provide the county with annual marketing plans that include specific targets for convention revenues; hotel room nights associated with conventions; and other benchmarks against which performance can be monitored.

Although the new management agreement would relieve Oncenter of significant costs, it also would reduce the corporation's subsidy from county government, which typically runs about $2.1 million a year, Fisher said.

Last November, the Oncenter needed an extra $575,000 from the county to pay its bills.

By removing building maintenance and other nonessential functions from Oncenter's to-do list, county officials will be better able to judge the convention center's performance, he said.

"It sets the stage for them to be held accountable," Fisher said.

The Onondaga County Convention Center/War Memorial Complex Management Corp. -- Oncenter, for short -- is a nonprofit corporation created by the county when the convention center was built in 1992. The corporation, which also oversees county theaters, parking facilities and the War Memorial, is governed by a volunteer board with up to 11 members.

The convention center was never intended to make a profit. Its mission is to bring to Syracuse visitors who will spend money at local hotels, restaurants and shops.

Toennies, who signed on as CEO last year, said the new agreement with the county would allow her staff to devote all their time to bringing in new business.

"It's really changing the business model," she said.

Contact Tim Knauss at tknauss@syracuse.com or 470-3023.