Council Delays Convention Expansion?
9-4 vote seeks to prevent convention center expansion during pandemic.
The Milwaukee Common Council has used its power to effectively delay a vote that would approve a $419 million expansion of the Wisconsin Center.
The Wisconsin Center District‘s consultants are unable to sell bonds for the project currently, but a letter sent Monday by district CEO Marty Brooks still contemplates authorizing their sale on April 2nd as originally planned.
“In order to be prepared to move forward with a vote, should we choose to do so, the full expansion resolution will be sent to you by Friday, March 27th authorizing the District to issue bonds to fund the expansion at such time as market conditions have rebounded,” wrote Brooks in a four-page letter to the district board. He said the ultimate decision rested with the board.
“Frankly, what planet is this guy on?” asked Alderman Robert Bauman. The district relies on sales taxes on car rentals, food and beverage sales and hotel stays to fund its budget, all of which, Bauman said, are essentially zero today. “This all needs a reset.”
Bauman supported rescinding the city’s previously approved certification in an effort to stall the deal. Hamilton didn’t want to rescind the order, instead desiring to hold special meetings in advance of a March 27th deadline where the state could issue its pledge based on the state’s previously approved certification.
Hamilton met with Brooks two weeks ago, before the pandemic hit Milwaukee, to discuss the city’s concerns with the deal.
“I don’t want to lose the leverage with the conversations we’ve had around revenue sharing and solidifying a community benefits package,” said Hamilton during a discussion that lasted nearly two hours.
He praised Bauman for raising the issues in the first place on March 3rd. “Alderman Bauman and I have been in agreement all the way up until this very moment,” said Hamilton. He said he was confident Coggs, Bauman and himself would all vote against the matter currently if it came up for a vote.
Bauman sees things differently. He thinks the city will end up with more leverage by rescinding the certification. “I don’t see any harm in doing this,” he said.
“I think the change in circumstances is so dramatic, so dire, that if the Wisconsin Center District is not going to hold up this vote, then we have to,” said Bauman.
The two went back-and-forth, answering questions from their colleagues, many of whom were participating via video conference.
Bauman said he originally favored holding more meetings, and the council had even scheduled one before Hamilton had his meeting with Brooks, but now didn’t think there was time with the looming March 27th deadline. “We will have no more leverage after Friday,” said Bauman. “They will probably tell us to just bug off. By rescinding it, we’re in the driver’s seat instead of being driven over.”
“To be frank, my constituents are concerned with survival right now,” said Ald. Russell W. Stamper, II after asking Bauman and Hamilton to make their cases.
At one point, the remote video feed went out. Bauman and Hamilton, two of the only three council members in the actual room at City Hall, continued to debate the matter.
Once things resumed, the debate continued.
“There will be no deal struck in the next 72 hours, that is just not possible,” said Bauman.
“The question for me is why give them the option to consider this,” said consistent expansion opponent Ald. Michael Murphy.
The matter was ultimately voted on.
Coggs abstained without explanation. She had previously expressed concern that even without the state pledge, the board could still legally vote to approve a more expensive version of the proposal.
Alderman Robert Donovan had left the meeting by the time of the debate.
The Wisconsin Center District had yet to lay off any employees as of late last week, despite not having any events. In his letter, Brooks said all full-time staff is taking a 20 percent pay cut through at least June. Hiring freezes and deferring projects alongside the cut will save $2.25 million this year.
“Inquiries for date availability in all three WCD facilities for the third and fourth quarters of this year are encouraging and we are guardedly optimistic that we will be able to offset some of the impact we are experiencing through June,” wrote Brooks.
The expansion project now has a $419,935,000 hard cost estimate versus a previous not-to-exceed $425 million figure. For more on the project, see our coverage from earlier this month.
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Related Legislation: File 191782
More about the Wisconsin Center expansion
- Eyes on Milwaukee: City Approves Wisconsin Center Deal - Jeramey Jannene - Apr 15th, 2020
- Eyes on Milwaukee: Convention Center District Authorizes $420 Million Expansion, Raises Hotel Tax - Jeramey Jannene - Apr 2nd, 2020
- Eyes on Milwaukee: Wisconsin Center Faces 50% Revenue Cut - Jeramey Jannene - Mar 30th, 2020
- Plats and Parcels: City Could Get Cash From Convention Center Expansion - Jeramey Jannene - Mar 29th, 2020
- Eyes on Milwaukee: Council Delays Convention Expansion? - Jeramey Jannene - Mar 24th, 2020
- Plats and Parcels: Convention Center Expansion Paused - Jeramey Jannene - Mar 22nd, 2020
- Plats and Parcels: 11 Key Details About the Convention Center Expansion - Jeramey Jannene - Mar 8th, 2020
- Eyes on Milwaukee: Renderings Released for Convention Center Expansion - Jeramey Jannene - Mar 6th, 2020
- Eyes on Milwaukee: City Wants $5 Million of Hotel Tax Per Year - Jeramey Jannene - Mar 3rd, 2020
- Plats and Parcels: UWM Gets Okay to Partially Demolish Columbia Hospital - Jeramey Jannene - Mar 1st, 2020
- Eyes on Milwaukee: City Okays Convention Center Expansion - Jeramey Jannene - Feb 11th, 2020
- Plats and Parcels: Gilbane, CD Smith Will Build Wisconsin Center Expansion - Jeramey Jannene - Jan 12th, 2020
- Wisconsin Center District Announces Construction Manager for Wisconsin Center Expansion - Wisconsin Center District - Jan 10th, 2020
- Wisconsin Center District Announces Architectural Team for Wisconsin Center Expansion - Wisconsin Center District - Dec 19th, 2019
- Plats and Parcels: River One Apartments Construction Starts in March - Jeramey Jannene - Dec 1st, 2019
- Plats and Parcels: New Apartments Near Streetcar Line - Jeramey Jannene - Oct 20th, 2019
- Convention Center Expansion Advances - Alana Watson - Aug 17th, 2019
- Wisconsin Center District Board Unanimously Passes Resolution Regarding Exposition Center Expansion - Wisconsin Center District - Aug 16th, 2019
- Plats and Parcels: State Aids Convention Center Expansion - Jeramey Jannene - Jun 30th, 2019
- Plats and Parcels: Convention Center Expansion Inches Forward - Graham Kilmer - May 20th, 2019
- Wisconsin Center District Updates Timeline for Completion of the Wisconsin Center - Wisconsin Center District - May 10th, 2019
- Evers Budget Overlooks Convention Center - Corri Hess - Mar 8th, 2019
- Plats and Parcels: About That New Convention Center Plan - Graham Kilmer - Jun 17th, 2018
- Plenty of Horne: Downtown Power Brokers Mull Expanded Convention Center - Michael Horne - May 15th, 2014