A report concluded that the Wisconsin Center needs an expansion to compete with other centers across the country. Credit: Journal Sentinel files

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An expansion of the Wisconsin Center would give Milwaukee potentially dozens more events — and the chance to compete more effectively with similar-sized markets — than if nothing is done, a new report concludes.

The study, prepared by HVS Convention, Sports and Entertainment Facilities Consulting, also concludes that if the estimated $200 million cost to expand the convention center is part of a larger mixed-use sports and entertainment complex, "the Wisconsin Center could play a vital role in the redevelopment of downtown Milwaukee."

"The Wisconsin Center and a new events center, which would replace the BMO Harris Bradley Center, could serve as anchors to a mixed-use entertainment district in downtown Milwaukee," the HVS report says. "This district could attract private investment with the inclusion of residential, commercial and retail development."

The report, now being circulated for discussion among members of the Wisconsin Center District board for its meeting on Wednesday, is certain to be included in a larger discussion about a potential new sports and entertainment arena as well as by members of the Cultural and Entertainment Capital Needs Task Force. That task force, which is studying the capital needs of a wide range of cultural, artistic and entertainment institutions in Milwaukee, is scheduled to meet on May 28.

According to the report, an expansion would put the Wisconsin Center "in a position to attract new national, regional and state conventions and trade shows to the Milwaukee market. The venue could also serve the customer base, which faces venue size restrictions to grow. The proposed Wisconsin Center expansion would continue to accommodate local demand for conferences, meetings, banquets and civic events."

Under a "no expansion" scenario HVS prepared, the Wisconsin Center's involvement in gaining national conventions would continue to deteriorate to as little as 172 events a year. Under expansion, however, the number of events would expand to 220 events. The center hosted 195 events in 2012.

"My sense is that we probably would not go it alone without having at least an opportunity to have the task force look at our situation as an ingredient in their consideration," said Franklyn Gimbel, chairman of the Wisconsin Center District board.

The expansion recommendations are relatively modest, by national standards. Currently the Wisconsin Center is 265,841 square feet, ahead of Omaha, Neb., and Grand Rapids, Mich., but behind Louisville, Ky., Cincinnati and Cleveland, and well behind Pittsburgh, Nashville, Kansas City, Minneapolis, Columbus, St. Louis and Indianapolis.

According to HVS' recommendations, exhibit space should increase from 188,695 square feet to 250,000 square feet; ballroom space should go from 37,506 square feet to 50,000 square feet; and meeting space would increase from 39,640 square feet to approximately 80,000 square feet.

The recommended expansion would be built across from the current convention center between W. Wells St. and W. Kilbourn Ave., and between N. 4th and N. 6th Streets., based on a design concept prepared by tvsdesign, an Atlanta architectural design firm. The firm envisioned what it called a seamless continuation of the existing Wisconsin Center.

"With new drop-off areas on Kilbourn Ave., the new space could operate in combination with existing space or independently from the rest of the building and therefore enhance the Wisconsin Center's ability to host larger events that use the entire building or smaller events that could simultaneously use separate parts of the building," the report says.

The report makes no recommendations on how the expansion would be financed, noting the district "does not have sufficient excess capacity to support more debt service."

"The expanded Wisconsin Center would increase food and beverage and rental revenues as the venue could attract more and larger events," the report said. "As cost would increase along with the new activity in the building, the venue would continue to operate at roughly the same level of subsidy."

The report concluded that annual estimated gross direct spending from overnight visitors, day-trip visitors, exhibitors, event organizers and new spending at the proposed venue would total $46.7 million in the city. The estimate would grow by $42.7 million for all of Milwaukee County; an additional $36.7 million for the Milwaukee standard metropolitan statistical area; and finally, an additional $18.1 million in the state. In other words, the total gross direct spending — with all geographic segments added together — is estimated at $144.2 million.

The Wisconsin Center District, which owns and operates the convention center, the arena formerly known as the U.S. Cellular Arena and the Milwaukee Theatre, collects revenue from four taxes. They are a 2.5% Milwaukee County room tax; a 7% room tax in the City of Milwaukee; a 0.5% food and beverage tax in Milwaukee County; and a 3% countywide car rental tax. All of that revenue is pledged for debt service. Revenue left over is used to fund the marketing efforts of Visit Milwaukee and the net operating loss from district operations.

The HVS report also assesses Milwaukee's competitiveness as a national convention and meeting destination. HVS ranked Milwaukee and 12 comparable cities on several criteria, including amount of space; adjacent hotel capacity; airport service; and other amenities. Of the 13 communities studied, Milwaukee ranked ninth. Milwaukee was relatively strong in terms of adjacent hotel capacity and travel costs, but that was offset by low rankings in terms of functional space and total hotel rooms in the area.

Other highlights of the report:

■ Fifty-one percent of event planners surveyed indicated they would be somewhat or highly likely to book an event in Milwaukee if the Wisconsin Center were expanded.

■ With satisfaction acting as a primary indicator of the ability to generate repeat business, HVS surveyed event planners who had previously done business with the Wisconsin Center.

Event planners were generally happy with the size of the exhibit hall, pre-event support and communication and overall service. But food and beverage quality, the price of meeting space, and food and beverage costs ranked lower.

■ Asked about the perceived strengths and weaknesses of Milwaukee as a convention destination, event planners said strengths included a downtown location and ease of local transportation; overall tourism appeal; hotel packages; and customer service. Perceived weaknesses includes an insufficient venue, a too-small Wisconsin Center; insufficient hotel rooms; lack of direct air service to Milwaukee; and the weather.

"Although Milwaukee has a favorable number of proximate hotel rooms, 57% of event planners indicate that they could not reserve an adequate room block," the report said.