Tracy Madigan presents a $7,000 check to Mark Hopper that paid for the Embassy Cultural Center’s study. An anonymous donor made the contribution.
Contributed photo
McGregor Hall makes a big splash, says NC State
By Tyler Davis tdavis@hendersondispatch.com 252-436-2839 Jan 29, 2024
The Municipal Research Lab at North Carolina State University had been researching McGregor Hall’s impact on the local economy since at least last August. Surveyors looked at the hall from 2019-2022.
The estimate for the hall’s total economic impact during that time frame is $15.6 million. The average during non-COVID years is $5.1 million, double than the last study, which looked at 2016-2019.
That’s broken down into a few areas — one is spending at local restaurants and hotels.
Say McGregor Hall hosts a graduation. A hundred seniors are getting their diplomas, meaning 200 parents show up and celebrate at local restaurants, and 400 grandparents show up from out of town and stay at local hotels. The money spreads around like a ripple in a pond.
From 2019-2022, that ripple was worth around $9.3 million to local restaurants and $3.8 to hotels. The lifetime numbers, from 2016-2022, are $11.7 million and $4.8 million, respectively. That’s a big increase Director Mark Hopper and the study alike attribute to dance competitions. Those are non-ticketed events, where outside organizations rent the space. That’s where most of the hall’s traffic comes from.
McGregor has established its brand, said Hopper, meaning it can find renters easier.
The crowds during those competitions can get so big that local restaurants run out of food or turn away customers, business owners told surveyors.
“The growing number of regional dance competitions have chosen McGregor Hall to host their event accounts for the recent surge in economic activity directly related to the performing art center,” the study reads.
Last year, McGregor Hall hosted the national Expressions competition, for example. They’ll be hosting it again this April. Nearly, if not every weekend from this upcoming one through the beginning of June, McGregor will be the site for dance competitions. Hopper estimated that up to 3,000 people may attend each one.
Besides bringing more people from out of town, dance competitions are also more resilient in the face of negative economic circumstances.
“One possible reason for this is that expenditures by households on dance competitions are, in part, investments in the participating child,” reads the study. “As such, they are less discretionary than expenditures on entertainment and should be more resilient to periods of economic contraction.”
Families might be willing to cut cable or concerts from their budget, but rarely dance classes, in other words.
Returning to the study, ticket sales during the study period reached $448,876. Sales to non-residents account for just under half of that at $201,639. Concession sales were over $102,000.
“Taken together, concession and ticket sales to non-residents introduced $247,724 into the local economy and nearly $7,432 in local tax revenue,” the study reads.
McGregor pays out some $77,484 yearly in operational expenses — advertising, lawn care, janitorial services, plumbing and electric, to name a few. Those are dollars local providers wouldn’t get if McGregor Hall wasn’t around.
Lastly, volunteers, from box office workers to stagehands, account for around $250,000 for 11,236 total hours worked during the study period.
The hall’s revenues took a hit during the COVID-19 pandemic — in 2019, the total impact was $5.5 million, decreasing to $3.1 million and $2.1 million in 2020 and 2021, before shooting back up to $4.8 million for 2022.
“We’re thrilled in terms of the economic impact we’re having, which many people might not know is a major part of our mission statement,” said Hopper. “The arts are just how we do it.”
Overall, McGregor is responsible for 13% of the county’s $118,142,000 gross product’s growth from 2019 to 2022.“Given the size of the economic contribution of McGregor Hall in relation to the economy of Vance County, it can be concluded that the McGregor Hall Performing Arts Center is a central component and core contributor to the local economy,” the study reads.
An investment in the arts is an investment in economic development, the study continues. Near the end, it suggests the City of Henderson and Vance County consider providing funding for McGregor Hall.
One challenge the hall is facing is its $2.6 million debt service, financed via a United States Department of Agriculture loan. It’s a leftover from when it was constructed in 2016.
“Indeed, if the city were to, for example, take over the full cost of the annual debt service payment of McGregor Hall,” the final line of the study reads, “the return on each dollar paid by the city would be $31 [to] $1.13.”
Currently, McGregor Hall doesn’t receive any municipal funding.
“Continuing what we’re doing,” said Hopper of the Hall’s future plans. “We really have to be laser-focused on getting this debt service taken care of. That’s what we need to be able to flourish.”He thanked Downtown Development Director Tracy Madigan and Pam Hester, director of Vance County Tourism, for their longtime support.
“The Downtown Development and Main Street Program center our vision and goals for downtown to be the regional hub for our cultural arts performances and dining,” said Madigan. “McGregor Hall figures vitally into that vision for downtown.”
“Every year, their economic impact has increased, bringing in locals as well as people from all over the country, really. It filters out throughout the whole economy of our county and city.”
Madigan expressed appreciation for Hopper and Embassy Cultural Center for their contributions to Henderson.
