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Rehoboth convention center to reopen March 1

Committee proposes rent increases to meet costs
February 9, 2018

Shuttered for nearly two years, the Rehoboth Beach Convention Center will reopen to the public Thursday, March 1.

Among the new features are a larger lobby area, expanded and upgraded kitchen, new bathrooms and a new entranceway. But with new amenities will likely come increased rates for renting the facility, as high as $3,000 for weekend events if a city committee has its way.

Reopening the convention center has opened a debate on how the center will be used in the future.

Commissioner Kathy McGuiness, chairwoman of the city’s Bandstand/Convention Hall/Special Events Committee, said the center has operated at a loss for many years, noting rental rates have not changed since 2009. Her committee has proposed a rental cost for the convention center of $800 per night for Monday through Thursday events and $3,000 per night for weekend events. Currently, for-profit entities pay $600 for Monday through Thursday events, $1,100 for Friday and Sunday, and $1,300 for Saturday.

“Our convention center is not a profit center, yet there are many economic benefits to the our  business community when it’s rented,” she said.

Nonprofits had paid a reduced rate, but under the committee’s new structure, for-profit and nonprofit entities would pay the same rental rate, although in-town nonprofits would receive free kitchen and audio/visual services and out-of-town nonprofits would have only kitchen rental costs comped.

McGuiness said the committee has proposed the rent fee for use of the meeting rooms would be $150 per day, which is unchanged, and use of the conference suite would go up from $250 per day to $500 per day because it has been improved.

“This past year we have new carpet, foyer, restrooms, appliances in the kitchen, paint, carpet, parking, landscape and lighting,” she said.

Use of the kitchen would go from $150 a day to  $750 per day, McGuiness said, explaining upgrades to the kitchen, such as new appliances and exhaust hoods, are driving the increase.

Events will rent either nightly, daily or some combination of both, and the city will charge separately to rent the room and the stage, she said.

McGuiness said an estimated 50 percent of the labor and operating budget of the city’s building and grounds department goes towards operating the convention center

McGuiness said she and other committee members say it is time to discuss direction of the center going forward.

“With neighboring sites changing or leaving, the opportunity is now to manage and direct our future,” she said.

Mayor Paul Kuhns said the convention center provides a meeting place for organizations that enjoy the city of Rehoboth to hold events in the city. 

“In many cases this facility provides a place for our property owners to gather and be entertained inside the city limits,” he said. “I see the convention center as a community center that brings people of our area together.  I doubt that there are many, if any, gathering centers like this that actually make money.  I see this as one of the many great services that our city provides to our residents and visitors.”

Kuhns said he thinks the proposed increases are a bit high, given that the center has been closed for two years and would be limited to less than a full year this year. He agreed some increase is necessary.

Noting previous rates may have been low, Kuhns said, “Once the committee presents its final suggestions, I am more than willing to continue the discussion, listen to the comments of the other commissioners and possibly vote on those changes at our upcoming meeting.”

Commissioner Lisa Schlosser said she sees the convention center as a community resource, but that the city needs to ensure its economic viability moving forward.

“The convention center is one of the greatest assets of Rehoboth Beach,” she said. “In the short term, we need to at least cover the operating costs.”

 

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