Arizona Event Venues Don't Seem to Make Fiscal Sense, But City Leaders Say They’re Worth the Losses

Convention and arts centers are costly and lose lots of money, but cities still build and advocate for them.

1 minute read

November 16, 2018, 8:00 AM PST

By Camille Fink


Mesa Arts Center

Cygnusloop99 / Wikimedia Commons

Jen Fifield reports that cities across Arizona own event spaces that are expensive to build and manage and end up losing money. Mesa, Glendale, Phoenix, Tempe, and Scottsdale have public facilities whose bottom lines that have resulted in huge annual losses — from hundreds of thousands of dollars into the millions. 

Cities make up the deficits through taxes and other funding. Some have turned over management to private companies or nonprofit organizations.

Arizona cities are willing to take a hit on these spaces because of what are seen as the larger benefits, says Fifield:   

City officials across the Valley say looking simply at direct revenue the spaces bring in doesn't show the whole picture. The venues attract people to the city, who then spend money on food, travel and hotels. That outside revenue, city officials say, brings in more than enough to make up for the cost.

This phenomenon is not particular to Arizona. Cities across the country have ramped up construction of convention space, even when the cost is substantial and the demand is not apparent.

“[Heywood] Sanders has argued in academic papers and a book he wrote called ‘Convention Center Follies’ that although government officials always claim ancillary benefits from building, expanding and operating the spaces, they are expensive and rarely fulfill their promises,” says Fifield.

Monday, November 12, 2018 in Arizona Republic

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Interior of Place Versailles mall in Montreal, Canada.

Montreal Mall to Become 6,000 Housing Units

Place Versailles will be transformed into a mixed-use complex over the next 25 years.

May 22, 2025 - CBC

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 28, 2025 - Diana Ionescu

AI-generated image of high-speed rail trail in elevated track in green hilly farmland.

Four Reasons Urban Planners Can’t Ignore AI

It’s no longer a question of whether AI will shape planning, but how. That how is up to us.

May 28, 2025 - Tom Sanchez

Aerial view of Bend, Oregon.

Bend, Deschutes County Move to Restrict Major Homeless Encampment

City and county officials are closing off portions of an area known as Juniper Ridge where many unhoused residents find shelter, hoping to direct people to housing and supportive services.

May 30 - The Bulletin

Metro rail station in Mariachi Plaza with colorful glass pavilion in Boyle Heights, Los Angeles, California.

High Housing Costs Driving Down Transit Ridership in LA

When neighborhoods gentrify and displace lower-income residents, transit ridership suffers, new research shows.

May 30 - CALmatters

Des Moines, Iowa skyline viewed from a plaza with two flags on either side at dusk.

Iowa Legalizes Accessory Dwelling Units

A new law will allow property owners to build ADUs on single-family lots starting on July 1.

May 30 - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.