I attended the report to the community yesterday regarding the feasibility of a convention center in the Fox Cities. I was especially interested, as the Grand Chute hotel room tax had funded $21,750 of the $75,000 study, and had been scouted as a possible location for the convention center. Following, are some highlights of the presentation.
Need
Convention, Sports and Leisure International (CSL) reported the Fox Cities "has a relatively strong array of visitor ammenities in place that makes it appealing to many small and mid-sized non-local groups." They also suggested the market demand is not being met for potential convention product in our area. While the Radisson Paper Valley Hotel in Appleton has ballroom and meeting space, there is still a lack of exhibit space in our area. They recommend a public/private partnership with Radisson Paper Valley, so there would not be competition between a convention center and the hotel for some of the same events.
Site Development
Eleven sites were identified throughout the Fox Cities for potential developement of the the Convention Center. Two sites and downtown Appleton were recommended at the top, with two in Grand Chute, near the Fox River mall were ranked third and fourth, repectively.
Construction Costs
The study lists three different scenarios that affect construction costs.
1. Public/Private Partnership with Radisson Paper Valley Hotel. (About $25 million)
The public would purchase site near the existing hotel, and fund construction of exhibit hall and related infrastructure
Radisson would operate at it's own risk/gain.
2. Public/Private Partnership with other new hotel (About $45 million)
The public would purchase site, and fund construction of exhibit hall, meeting rooms, and ballroom space.
A new hotel chain would construct their own full service hotel with at least 300 rooms nearby would operate at it's own risk/gain.
This option was ranked lower because of incentives required to gain hotel partner and the competition of the existing Paper Valley Hotel.
3. Stand-Alone Convention Center (About $45 million)
Public would purchase site, fund construction of entire structure.
Public would own and operate the center or contract third party management
A new full-service hotel would be developed nearby.
This option was ranked lower in part because of the ongoing operating obligation for the public.
Benefit vs. Costs
Convention centers in general do not make money. Rather, they generate money into the communities where they are located with new visitation, and spending in the local community. They also provide a venue for events and activities for local community members.
The study looked at "net new" economic impacts generated by visitors not residing in the Fox Cities.
For scenario 1. (Paper Valley Partnership)
Annual Costs to operate would be $1,920,00 vs. $25,050,000 Development Cost
Annual Economic Output $8,429,085
Annual Benefit to Cost Ratio 4.39
For scenario 2. (Other Hotel Partnership)
Annual Cost to operate would be $3,886,900 vs. $50,014,000 Development Cost
Annual Economic Output $7623,074
Annual Benefit to Cost Ratio 1.96
For scenario 3. (Stand Alone Center)
Annal cost to operate would be $4,466,90 vs. $50,014,000 Development Cost
Annual Economic Output $7623,074
Annual Benefit to Cost Ratio 1.71
My personal thoughts/questions will follow soon.
