SAVANNAH — The completion of a $276 million expansion of the riverfront Savannah Convention Center could be delayed until late 2024, a state agency has warned, disrupting plans for a number of major groups booked into the exhibition hall in anticipation of a May opening.
The expansion will double the capacity of the 24-year-old building on Hutchinson Island, overlooking Savannah’s historic district, and make it one of the 75 largest exhibition halls in the country. Construction, which was initially planned for completion last fall, has been delayed by a number of factors, including weather and a dispute between the state and development team.
On Tuesday, the state agency overseeing the project, the Georgia State Financing and Investment Commission or GSFIC, announced the expansion’s opening would be delayed beyond a May target and could stretch into the final months of this year.
The setback has forced Savannah convention bookers to work with clients scheduled for events in the enlarged hall to make alternative arrangements. The convention center’s existing exhibition space remains open for conferences, but five larger events have already been canceled and another 22 conventions face adjustments, which include postponement or moving some activities to other Savannah-area event spaces.
Credit: Stephen B. Morton for The Atlanta Journal Constitution
Credit: Stephen B. Morton for The Atlanta Journal Constitution
The facility’s size matters to convention planners. Savannah tourism and hospitality industry insiders have seen a surge in interest from planners — 57 conferences — since state and local officials broke ground on the expansion in March 2021.
“Convention planners are always looking for a fresh, new destination for their attendees to visit and that is why, now with the even larger convention center, there is so much interest and enthusiasm to come here,” said Joe Marinelli, president and CEO of Visit Savannah, the local convention and visitors bureau. “Planners are confident that their attendance will be strong in a popular city like Savannah.”
But while lost business from the canceled conferences stings, the inability to deliver on promises to clients is a greater concern, Marinelli said. With the delays, Visit Savannah’s sales team is traveling the country to meet with convention planners face-to-face to manage the fallout.
“Protecting Savannah’s reputation as a convention city is at the top of the list as we deal with this situation,” Marinelli said.
Credit: Courtesy photo
Credit: Courtesy photo
The chairman of the Savannah-Georgia Convention Center Authority, the state entity that oversees the facility, has long expressed frustration with the project’s progress but downplayed the effect of the delays in a statement issued Tuesday.
“This is a short-term construction delay, but we remain focused on our long-term vision to create an exceptional experience for everyone who visits Savannah,” said Mark Smith, a Savannah businessman who has been involved with the Savannah Convention Center since its 2000 opening. “We are sharing this information proactively to avoid confusion and are already in touch with those we know will be impacted by the delays so they can adjust or reschedule their events. Our existing facility is fully open and we are taking care of visitors to Savannah.”
The expansion was to be completed late last year, and Marinelli and convention center officials had booked conferences for the enlarged hall starting in January.
The timeline began to slip last fall due to construction delays rooted in a standoff between the contractor, the architect and the GSFIC. The agreement called for the state to pay the contractor, Clark Construction, upon the project reaching certain milestones.
But as delays due to weather, materials availability and other factors piled up, Clark began to experience pushback from subcontractors seeking payment. This led to further setbacks, according to reports delivered during the Savannah-Georgia Convention Center Authority’s monthly meetings.
Three months ago, the authority ceased discussing the convention center expansion’s progress except during executive session. Because the project involves an ongoing real estate transaction and potential litigation, officials are able to discuss the matter outside of public meetings under an an exemption in the Georgia Open Meetings Act, although any votes must be conducted in a public forum.
In announcing the delay, GSFIC hinted at strained relations with the contractor. The agency’s chief of staff, Gerald Pilgrim, said the state will “take any and all actions to get the convention center finished as efficiently as possible.”
“As we work to finish the convention center, we will protect the financial interests of the state, hardworking Georgians, project subcontractors and all of our financial partners,” he said in a news release. “We care about everyone involved in this project.”
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