"Boston is a popular convention destination, and there has been market demand for larger, more flexible event space in recent years. This expansion will meet demand, unlock greater economic potential, and support the creation of new jobs," said Gov. Baker. "Our plan will make Boston's convention space more efficient and maximize new economic opportunities in both the Seaport and the Back Bay, benefiting the City of Boston and the Commonwealth."

The Hynes opened in 1963 and was rebuilt in 1988. The facility needs major capital investment—estimated at nearly $200 million—over the next 10 years just to maintain its current condition.

The Hynes is also limited in its ability to expand its market share, given competition for nearby hotel rooms, according to the Massachusetts Convention Center Authority. At the same time, changes in neighborhood property uses and current market conditions have created value for the Boylston Street property, which could be put to more productive use through creative redevelopment. The proceeds of the sale will fund modernized, expanded, and enhanced facilities in the Seaport, serving convention business better and allowing Boston to continue to grow and evolve, they add.

"As Boston continues to serve as a regional hub for economic activity and growth, the state's proposal presents a new opportunity to expand the Convention Center and bring a significant piece of land back to Boston, benefiting the South Boston Waterfront and city overall," said Boston Mayor Martin J. Walsh. "I look forward to discussing this proposal with the Legislature and staying engaged through this process as it moves forward."

The BCEC opened in 2004. The expanded BCEC, with greater variety of available spaces, will be positioned to capture greater market share for large multi-day conventions and shows and accommodate bookings that might otherwise have gone to the Hynes, the MCCA states.

"The authority's mission is to facilitate regional economic activity and we are excited at the opportunity to further strengthen the BCEC's competitive position in the global meetings and events industry," said John McDonnell, chairman of the board of the MCCA. "The proposed expansion will ensure that the MCCA is meeting the needs of our customers and continuing to attract high quality convention business to the BCEC, and Boston, for years to come."

Once the legislation is enacted, the MCCA is expected to issue a Request for Proposals for the BCEC expansion project that would begin design of the expanded facility.