The Finance Committee met 10/21/2024. One of the items they voted on was a request to obligate nearly $1 million in American Recovery Plan Act funds to pay for facility upgrades and consulting work associated with the Exhibition Center.
The Expo Center has struggled since opening in 2018 because of Covid and the fact that the facility lacks features that such as carpeting and acoustical improvements. Additionally, the management agreement for the Expo Center expires 12/31/2025. The city would like to use $985,000 in ARPA funds to install carpeting and make other miscellaneous improvements and also hire a consultant to help them develop a strategy to negotiate the development of a new management agreement.
The Finance Committee voted unanimously to recommend the request for approval.
I’ve prepared a transcript of the discussion for download:
Alderperson Chris Croatt (District 14) asked how much of the money would go toward consultants. Community Development Director Kara Homan answered that between $50,000 and $100,000 would, but they hoped it would be on the lower end of that range. The remaining portion of the funds would go toward the facility upgrades. Design and engineering costs would be part of that, but the biggest portion would be installation.
Alderperson Denise Fenton (District 6) asked if local partners in the tourism industry had been consulted about the use of these funds and that they had determined putting them toward the Expo Center was the best use of these dollars. Director Homan said that they had worked with the Executive Director of the Convention and Visitors Bureau and she had been part of the team that put this concept together. They were also going to continue working with her directly as this project moved forward.
Alderperson Katie Van Zeeland (District 5) noted that the Expo Center project had happened before most of the people currently serving as alderpersons had been elected. She asked if, at the time the project was approved, a study or assessment had been conducted that identified any of the issues that were now being raised.
Director Gazza said that at the time there had been a group that worked to determine what the Exhibition Center would look like. His recollection was that there had been discussion about how the facility would be used and how it might compete with other similar facilities. At the time, there had been some reservation about installing carpet because the space was envisioned as an exhibition hall not a conference center. At the time, exhibition halls typically had concrete floors, but he said that nowadays any type of conference center with an exhibition hall will have all the expo displays on carpeting, and any room set up for a speaker will be carpeted. “So, you know, there was discussions, but I think nobody knew at that time until you actually operate—especially because it was unique that it was only an exhibition center with the conference center on the other side. But seeing the potential of using that side, also for conference related matters, really increases the potential of the facility.”
Mayor Woodford assured the committee that the Expo Center was in good shape fiscally. The bonds that paid for the facility are serviced by room tax revenue, and room tax collections have been very strong, particularly due to inflation having increased the cost of hotel rooms.
The city’s concern was being able to maintain the future operation of the facility and creating a strong reputation in the industry so that they could get repeat business and also more diverse business than they currently have.
He went on to say, “And so these projects would really be aimed at helping [the operator of the facility] have a product that they could put out on the market more confidently, and the sales come a little bit easier, because eventually, once those bonds are repaid and we’re now in the process of just maintaining and operating, we need this facility to generate sufficient funds, not only to operate it, make it work for the operator, but also to generate the necessary reserve and maintenance funds that will be required to keep it up.”
The committee voted unanimously to approve the item.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1214271&GUID=71D2BBF2-7F87-4E72-8FB0-832F96ECAFAE
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