NASCAR Hall wouldn't mind hitting this bump

Next year's NASCAR Hall of Fame's draft budget predicts revenue from admissions will increase nearly 20 percent, an optimistic projection that runs counter to the experience of many similar attractions.

The Georgia Aquarium, for instance, saw attendance decline 25 percent for its second year, and 15 percent more from year two to year three after the initial excitement wore off. The Rock and Roll Hall of Fame in Cleveland showed similar declines in its first three years of operation.

Attendance at those venues - and many others - then stabilized.

The city-owned NASCAR Hall of Fame projected 800,000 visitors for its first year. Instead, attendance was roughly 274,000, including 12,000 free visits during an open house in January. Before the hall opened last year, hall backers expected attendance to decline from the first year to the second year.

The draft budget calls for $4.88 million in admission revenue next fiscal year, while this year's admissions revenue is expected to be $4.15 million. A memo from the Charlotte Regional Visitors Authority, which operates the hall, said the admissions projections are based on a "stretch" target.

Hall spokesperson Kimberly Meesters said the higher ticket revenue doesn't necessarily have to come from more walk-up traffic.

"It can be comprised of so many different factors," Meesters said. "We could do a membership drive, and that could boost that number drastically. We could do a tie-in with the convention center."

She said the hall has had no discussion about raising its ticket price.

The CRVA board is set to vote on the budget at its meeting next week.

The hall's first fiscal year, which ends June 30, is expected to end with a $1.29 million operating loss. The CRVA has said it will cover that loss from its reserves.

For the upcoming fiscal year, the projected increase of more than $700,000 in admissions revenue helped show no loss in its draft budget. The hall also is slated to receive a $1.044 million operating subsidy from the city of Charlotte for the first time. That money would come from reserves in the 2percent hotel/motel occupancy tax that built the hall.

The 2 percent tax for the hall can only be used for acquisition, construction, maintenance, repair and financing of the hall. It can't pay for general operating costs.

The hall's draft budget says it will spend $217,000 on repairs and maintenance.

In a memo to the city, however, the hall itemized hundreds of thousands of dollars in additional expenses it said are eligible for the 2 percent tax.

The hall said it will spend $615,000 refreshing exhibits, including 2.4 full-time positions associated with the exhibits. It also billed the city for 2.5 full-time positions who work with repairs and maintenance.

Deputy City Manager Ron Kimble said the money for exhibits "clearly qualifies" for the 2 percent tax money because the hall is "maintaining" its exhibits.

If attendance revenue declines by 15 percent, the hall would face a swing of more than $1.3 million in budgeted admissions revenue. The CRVA would have to cut expenses, or use money from other hospitality taxes, including a 1 percent tax on prepared food and beverages in Mecklenburg.

Money for wages and benefits at the hall for the upcoming year is budgeted at $2.95 million, up from $2.69 million.

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