FOX CITIES EXHIBITION CENTER UPDATE

Walt Rugland presented an update to the Club on how the Fox Cities Exhibition Center is coming along.  An Economic Development project for the times. A collaboration of County, City, Tourism and the Private Sector. Walt presented a Time Line of the Exhibition Center. In 2008 a Feasibility Study was conducted and it concluded that Appleton was missing an exhibition capacity.  In May 2009, Follow-Up Data by CS&L. April 2010, Appleton Council/Mayor appoint study. December 2010, CCCC Report to the Community.  January 2011, Non-profit FCEC chartered.  February 2011, RPV agrees to take operating risk. June 2011, County Board agrees to transfer site subject to hotel, price and parking agreements.  January 2012, CVB Grant approved for design work.  May 2012, Architect team completes concept design.  July 2012, Hotel ownership defaults on financing which puts the project in limbo waiting for Hotel restructuring.  In November 2012, Hotel sold at auction to lender putting the project again in LIMBO waiting for Hotel ownership to surface.  In May 2013, Owner surfaces with potential agreement.  In July 2013, Lease term sheet agreed between Hotel ownership and FCEC. August 2013, Appleton Mayor sets actual lease as criteria for moving forward with approvals.  July 2012:  Hotel ownership defaults on financing which put the project in limbo waiting for Hotel restructuring.  November 2012, Hotel sold at auction to lender again putting the project in limbo waiting for Hotel ownership to surface. May 2013, Owner surfaces with potential agreement.  July 2013, Lease term sheet agreed between Hotel ownership and FCEC.  August 2013, Appleton Mayor sets actual lease as criteria for moving forward with approvals.  November 2013, City Council renews capital support.  December 2013, CVB funds feasibility study update.  April 2014, Feasibility update complete.  April 2014, Community Foundation resolves to purchase bonds when available.  June 2014, County Board agrees to sale terms for site.  The conclusions from the 2014 Feasibility Study were: Viable from market, financial and economic perspectives, Radisson participation is key to value, Industry is still in recovery, “Good work” to date and $6.5 million annual economic impact.  As far as the Visitor Impact: Full service convention center capacity annually adds 16,600 additional hotel nights.  The Annual Economic Impact is 6.5 Million Dollars, which is about 100 Million over 15 years of new dollars to the Region.  The Financial Variables:  Design concepts are done, Cost Estimates are done but need updating, Radisson agreement to take risk is done, Obtain site is done, Infrastructure development is budgeted, bonding interest costs, room tax level and other gifts and grants are still are not known at this time.  The Radisson Paper Valley Operations Management and long term risk agreed to by Hotel with Lease Term sheet in July of 2013.  The Hotel Occupancy Tax (room tax) is assessed until bonds retired.  The tax covers construction, not operation losses.  A big question to the community is:  How much will it cost the community taxpayers to have a $100,000,000 economic impact?  It will cost taxpayers about 3.8 million the rest will be funded by grants and by room tax.  The Rest of the Story is that the City resolves ownership option structure.  The City Council sets the room tax increment and other required items.  7 other municipalities enact same room tax.  The Construction bonds are issued.  The cost estimate is reconciled to funds available.  The Design concepts are translated to firm plans.  A few questions were asked by the Club.  What types of organizations will this bring to the area?  The Exhibition Center will bring Fishing Shows, Book Shows, Church groups from all over the state and region.  How will parking be handled?  The same as the hotel handles it now.  There will be a ramp from the hotel to the Exhibition Center.  How does the square feet compare the Ballroom located in the Radisson?  The Ballroom located in the Radisson is 13,500 sq. ft. and the Exhibition Center is 2 ½ times that size and will not contain pillars.  It is similar in size to the KI Center in Green Bay.  The difference is that people will want to come back to Appleton, per Walt.  Is there a date to break ground?  It could be as early as this fall or next spring.  It all depends on the room tax.  How many jobs will this bring to the Fox Cities?  There is an estimate of 150 jobs to the community and this is not just within the Exhibition Center.