Preakness is also a venue to wine, dine and woo potential businesses

Daily Record, The (Baltimore), May 16, 2008 by Liz Farmer

For some in Maryland, the 133rd running of the Preakness Stakes at Pimlico Race Course means more than just a weekend of astronomical crowds, tens of millions of dollars spent and wagered, hundred of jobs and more than $1 million in tax revenue for the city and state.

The race, by far Maryland's largest one-day event both in size and economic impact, is also a marketing and networking tool for the city and state -- a venue to wine, dine and woo potential businesses considering relocation or to close a deal with others who could bring tourism dollars to the state and affect the economy for years to come.

"We use Preakness as a tool in our arsenal, or toolkit, of selling Maryland," said Robert McGlotten Jr., assistant secretary of the business development division for the Department of Business and Economic Development.

He said DBED typically invites representatives from about 125 companies to the event each year. Selecting from companies it has targeted as being "predisposed" to making an investment in the state, those hosted at the Preakness can include executives from aerospace, defense, life sciences, media, entertainment, communications and financial services industries. Some are new to Maryland and some are considering relocation or expansion to the state.

At DBED's corporate village tent, which will host about 400 people this year, these business members also have the opportunity to develop contacts in their new home -- or future -- state. DBED is sharing a tent with other state and city agencies, according to a spokeswoman, and is paying $135,000 for its portion of the rental and catering costs.

"The event allows us to bring members of the business community together on a stage where they can interact with other businesses," McGlotten added. "It's personal, it's cozy, it's unique, it's fun. We use Preakness as a unique vehicle to invite businesses to join us in a very concentrated but relaxed businesses environment to talk about why to do business in Maryland."

The Baltimore Area Convention and Visitors Association also has a corporate village tent and this year will host about 50 meeting planners, association directors and their guests, and 50 other members of the local community.

BACVA President Tom Noonan said the association likes to showcase both the city and convention center with a Friday dinner and Saturday brunch to those who might be eyeing Baltimore as a site for a future convention.

The approach by the city and state is more of a soft sell -- letting their guests take in the sights and sounds and national excitement surrounding the middle jewel of racing's Triple Crown. And it's one that can get results.

"It is an opportunity for us to really showcase Maryland," said Hannah Byron, assistant secretary for DBED's division of tourism, film and the arts. "And what better way than to invite business leaders to the race and celebrate this tradition?"

It's a different approach than the Port of Baltimore takes with its Preakness guests, which include top officials at many of the world's leading shipping lines.

"There's a lot of business talk going on," said the port's spokesman, Richard Scher. "There's not a lot of opportunities for the top officials at these lines to meet with us face-to-face ... so when we get the chance to see them face-to-face, it's a lot of business talk about how they're doing, or now that they're here, how they've positively impacted the port."

He noted that in the years since the port has been hosting officials, the port has secured long-term contracts ranging from 10 to 20 years from Wallenius Wihelmsen Lines, Mediterranean Shipping Co. and Mercedes-Benz USA. Scher said shoring up future business from their attendees is an example of the value a high-profile event like Preakness brings.

"When you've got top decision-making officials at leading cargo or shipping companies all over the world that are deciding where they want to send their business to ... events like this really can go a long way to getting to know those prospective customers on a personal basis," said Scher.

Either approach has the potential to translate into billions of dollars for the state's economy -- a long-term benefit to a one-day extravaganza.

Some of DBED's guests are businesses who are moving to the state but may not have many contacts in Maryland. Cinetic Landis Grinding Corp., a Waynesboro, Pa.-based manufacturer of precision grinding systems, had already chosen Maryland for its headquarters relocation but was invited by the department last year to help them network with other businesses.

The 28-acre, state-of-the-art facility is scheduled to open July 2008, and the estimated $10.5 million project will bring approximately 150 higher-paying jobs to the area.

Novavax Inc., a vaccine developer, was also a company invited by DBED that relocated its corporate headquarters to Maryland last year. Rahul Singhvi, the president and chief executive officer, noted the invitation to Preakness was "one of the nice things they did for us," but what really sealed the deal for him was the department's follow-through and support in the company's transition from Pennsylvania. The company was originally based in Columbia, but moved to Pennsylvania in 2002.