Savannah Convention Center expansion "significantly delayed" past expected May opening
The Savannah Convention Center's $276 million expansion is now "significantly delayed" beyond its expected opening in May this year, according to a Tuesday press release from the Georgia State Financing and Investment Commission. The GSFIC is the state agency that oversees state construction projects.
As of publication, SCC has had to cancel five events, with one other moving out of state, according to a statement by Savannah-Georgia Convention Center Authority Secretary and Treasurer Bert Brantley. The event that moved out of state would have generated 6,818 room nights at 25 different hotels, the statement said.
SCC staff has worked with a total of 22 events to accommodate the delays by using the existing building, adjusting event dates or finding other event space in town. All customers impacted by the delays have been notified.
"All we know to do is tell everybody what is going on, and be open and honest with them," Brantley said in an interview.
The project has undergone "unforeseen construction delays," the press release said. Tuesday's announcement was due to not having a clear indication of when the building would be finished after multiple delays already, said Gerald Pilgrim, chief of staff for GSFIC.
The opening was pushed back to May 2024 in November after it was previously set to open in January this year. Material completion was initially slated for Q3 of 2023, according to the release.
"That brings up concerns in that we keep seeing this constant slippage, and we do not have a real good grasp on when we are going to get the building to turn it over to the convention center, when are we going to get to a final completion?" Pilgrim said. "So, we felt like it was best of us to be proactive with the (convention center) board."
Background: Savannah Convention Center completion pushed out (again) to May 2024
There is no updated timeline date for the project's completion, according to an FAQ provided with the release. But Pilgrim said GSFIC is working with the general contractor, Clark Construction, and a design professional to assess what the project needs for completion.
Clark could not be reached for comment on the announcement before publication. But a construction update at an SGCCA board meeting in November targeted the end of March for required safety inspections needed to host conventions. As of that meeting, the SCC had five events booked for May and three events booked for June in the expansion space.
The FAQ said specifics on the financial impact of the delays could not be shared "due to the various ways we are working with our clients to resolve their challenges." But projections at the November SGCCA meeting said losing May's events could result in a potential $551,000 loss in revenue. Projected losses would jump another $250,000 if June's clients were lost.
As SCC staff works its various options for accommodating booked events, the existing facility is fully open and operational, according to the release.
“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, chairman of the SGCCA, in the press release. “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."
The FAQ said GSFIC it is not in litigation with Clark, and it's continuing to work to resolve the construction challenges.
The delay comes as the SCC seeks to build a hotel on Hutchinson Island to accommodate growth from the expansion. There is currently a bill in the Georgia General Assembly to increase the SGCCA's bonding capacity in order to build the hotel.
More: House committee passes bill to increase Savannah Convention Center bonding capacity
More: House committee passes bill to increase Savannah Convention Center bonding capacity
The SCC's expansion is set to double the exhibit hall space and add 40,000 square feet of ballroom space, according to Tuesday's release. Updates on the construction will be provided as soon as a timeline is established.
"This delay on the front end, while it is painful, it is to ensure that we get a great finished product," Brantley said.
This is a developing story.
Evan Lasseter is the city and county government reporter for the Savannah Morning News. You can reach him at ELasseter@gannett.com.
This article originally appeared on Savannah Morning News: Savannah Convention Center expansion "significantly delayed"
