Attendance, usage days and revenue were up at the Vicksburg Convention Center and Auditorium during the first quarter of fiscal year 2009, compared to the year previous, thanks to holiday events and steady bookings for business conferences, meetings and receptions. 

“We are in very good shape as we turn the corner into the second quarter,” said Larry Gawronski, executive director for VenuWorks, which operates the city-owned meeting facilities under contract. “We attribute the success to a combination of new business rentals, increase food and beverage sales — even in an economic downturn — and a very close watch on variable expense line items.”

Gawronski shared the news with the convention center and auditorium advisory board during its quarterly meeting Wednesday. Total revenue for the quarter at the convention center topped $130,000 from Oct. 1 through Dec. 31 — 58 percent more than the $86,000 expected for the quarter. Those numbers do not include the 2 percent lodging tax the convention center and auditorium benefits from in addition to subsidies from the City of Vicksburg. Expenses were about 4 percent over budget through the first quarter, but Gawronski attributed the $11,000 increase in utilities and other costs to the increased bookings that also generated additional revenue.

The auditorium on Monroe Street did not fare as well as the convention center on Mulberry, with revenue off by about $5,000 and expenses running about $300 over budget. Those expenses will increase further this fiscal year as a $100,000 roof replacement gets under way.

In a personnel cut, Gawronski said a VenuWorks corporate mandate forced him to eliminate one position, reducing the staff from 10 people to nine.

“It’s never a happy situation when you have to eliminate an employee, especially when you’re a close-knit family like we are,” he said.

Neither facility has or has been expected to pay its own way, but Gawronski said the company, which receives pay for performance incentives, is on pace to meet a three-year goal of reducing the net operating deficit by half by the end of fiscal year 2010. Net operating loses were reduced to $246,639 during fiscal 2008 from a $354,807 operating loss during fiscal 2007.

“With the lodging tax applied, our net operating deficit is running 63 percent under budget for the quarter,” he said. The tax was first imposed to pay off the 10-year construction cost of the convention center. It was retained by city officials after the last installment was paid nearly three years ago.

A total of 56 events took place at the convention center and auditorium in the first quarter, including 14 meetings, 13 receptions, 11 banquets, six conferences, four trade shows and eight large events, such as “Disney Live! Winnie The Pooh,” the 2008 Business Expo, 7th Annual Festival of Trees, V105 Christmas Caroling Contest and Rage on the River III.

“The simple fact is we are putting more business on the books — although they may be smaller events — and they are generating greater attendance and even better, increased overnight stays,” said Gawronski, noting the first quarter events created nearly 800 room nights.

As for how the opening of the 330,000-square-foot Jackson Convention Complex on Jan. 17 will affect bookings in Vicksburg in the coming year, Gawronski said he anticipates everyone in the state will be temporarily affected for a “honeymoon period.”

“We anticipate a certain drop off as groups will want to check out the new facility, but many of the events we get are in rotation and certainly I think they’ll come back to Vicksburg,” he said. “In the long run, three factors are going to come into play: One, the price point is higher (in Jackson), and some groups are not going to be able to afford it. Two, the size is much larger, and they’re going after the huge trade shows we don’t go after. Three is customer service. There’s a lot more you get (in Vicksburg) that you don’t get in other places.” 

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Contact Steve Sanoski at ssanoski@vicksburgpost.com.