GASTON COUNTY, N.C.,None — Less than two months after the Gastonia Conference Center opened, city leaders who wish it had never been built are showing a keen interest in every detail of its operation.
That curiosity was on full display Tuesday. Recently elected City Council members peppered the conference center's management firm with a slew of questions about everything from revenue and expenses, to why the empty building's lights are sometimes left on at night.
Along with deciding to build the structure, the previous City Council hired The Wilderman Group of Charleston, S.C., to market and run it. Firm founder John Wilderman, president Kristin Kurie and Gastonia Conference Center general manager Fred Julius were all on hand to update city leaders on its progress.
The $10 million, 29,000-square-foot conference center opened Nov. 17. Counting events hosted so far and future bookings secured through June, it has secured $186,000 in gross revenue, Julius said.
Responding to a question from Councilman Walter Kimble, Julius said they don't yet have a firm figure on monthly operating expenses. The energy costs of running the building haven't been established, he said.
Kimble also asked about how big a part catering has and will play in the center's events. Julius said 90 percent of the business secured on the books will have an outside food and beverage component.
The center increasingly plans to bring local caterers into the mix to handle conferences and other events. But the two local businesses they've had contact with so far have had trouble establishing a big enough pool of employees, Julius said.
"Through the holidays, we were doing parties of 200 to 300 people, which means these caterers have to bring in 12 to 14 staff members," he said.
Julius said the center's business for November and December was about $7,000 better than what was budgeted. That included $68,000 in revenue in December, he said.
"We didn't lose as much money as we thought we would those two months," Wilderman said.
The first profit-loss statement will be provided to City Council members in February, he said.
Julius said the final kinks being worked out have included instructing employees on when to keep interior lights on and off. The center's electronic sign along Franklin Boulevard will also soon be up and running, he said.
When it comes to deciding what to charge to rent the center, nonprofits are always given a much better rate than corporate clients, Kurie said. Rates are typically based on how much space is being used and how many people are being brought.
"Everything's negotiable," said Julius. "But we do have select-to-sell guidelines. There's a rental cost affiliated with each section of the conference center, according to the size of the event."
The center is being aggressively marketed on Facebook, Twitter and in various travel and tourism and conference publications, Kurie said. It will host a college expo on Feb. 18 and a U.S. Foods Show on Feb. 23, bringing in many people from out of town, she said.
When booking an event and negotiating rates, every effort is made to ensure it brings in the promised number of people who will spend money on hotel rooms, etc. The point is to ensure the city doesn't suffer from a conference that fails to deliver, Julius said.
"Most of the time, we hold their feet to the fire," he said.