Events Center brings in costs, potential revenue

The opening of the partially student fee-funded Gallogly Events Center has brought with it the attendant costs of maintaining a large building. With those costs, however, are potential revenue sources that could benefit the university and, in the long term, help alleviate budget problems, according to administrators.

Opened in mid-January primarily as an athletic facility, the Events Center imposes significant costs on the university. Associate Vice Chancellor of Administration and Finance Susan Szpyrka said that the building, which is managed by University Center Director Jeff Davis, costs over $100,000 annually in utility bills, and that cleaning and maintenance will impose further costs depending on how often they are used.

Still, the building broadens the university's conferencing abilities. The university has for some time been leasing its facilities, including the old gym, The Lodge and some student housing buildings, to outside organizations willing to pay for conferences. The revenue generated from such activity averages around $250,000 annually, and Szpyrka said that the Events Center and the resulting conversion of the old gym to conference space allows the university to increase such revenue opportunities -- the Events Center itself has so far this year brought in $7175 worth of revenue, according to records obtained by The Scribe -- with the ultimate goal being to increase this number to $1 million by fiscal year 2013.

Revenues from conferencing fund a variety of projects. First and foremost, said Szpyrka, was covering the costs of using the buildings, including utilities, maintenance and security.

In addition to regular maintenance staff, Director of Residence Life and Housing Ralph Giese said that conferencing has allowed the university to fund 25 student conference assistant jobs over the summer conferencing season, which lasts from May 15 to Aug. 15. These jobs would not otherwise exist, he said.

In addition to conferencing rental revenues, conferencing often generates housing revenue from rental prices charged for provision of hospitality in the student housing village. "Conferencing generates around $170,000 to $180,000 in revenues that go straight back into the housing department's budget and fund capital-improvement projects," said Giese. Projects funded by conference revenues, which have in the past included  such things as installation of artificial turf, are relatively expensive, so it can take more than one years' worth of revenue to pay.

Giese said that revenues generated from conferencing also have other spillover effects. The funds "allow housing to keep prices lower," as well as be relatively lax with student water usage. "We don't currently monitor student water usage," said Giese. "Conferencing revenues can allow us to keep it that way."

Any revenues above the costs of conferencing will go back into the general fund to help shore up the campus' overall budget.

Szpyrka estimated that conferencing revenues this year will be enough to at least cover expenses. Off campus bookings of the Events Center thus far include the El Paso County Republican Party Assembly, Pine Creek High School's and Liberty High School's Proms, Aerial's Gymnastics, Branson School's Commencement, and a Colorado Springs Utilities Party.

Szpyrka also said that the center will allow some events, such as Beth-El's annual convocation, previously held off campus to be hosted on campus for the first time.

"The Events Center's purpose is to provide UCCS with a space large enough to accommodate significant academic, social and other events, to accommodate those folks interested in attending," said Szpyrka. 

In the print version, Susan Szpyrka's title was incorrect. The online version contains the correct title, "Associate Vice Chancellor of Administration and Finance."