KI Center may soon expand in new deal

Expansion of the KI Convention Center soon could move forward under a new agreement on spending current and future hotel room tax revenue.

Local civic and business leaders said Friday they have negotiated a tentative deal that would break a months-long impasse that threatened the future of the convention center project.

Under terms of the deal, the city of Green Bay would issue $12 million in bonds to fund the project and Brown County would earmark hotel tax revenue surpluses to pay off the bonds.

A proposed increase in the hotel tax would be dedicated to the Greater Green Bay Convention & Visitors Bureau, while funds previously used to operate the convention bureau would go toward Resch Center improvements.

Mayor Jim Schmitt said Friday all major players have signaled support for the arrangement because it accomplishes three goals: expanding the convention center, funding the convention bureau and upgrading the Resch Center.

"There's enough people who understand that all three things need to move forward," Schmitt said. "We've come up with a framework that addresses all three."

Representatives of the city, county and convention bureau gathered inside City Hall on Thursday afternoon to hammer out the deal and emerged sounding upbeat.

Brad Toll, president of the convention bureau, said he would take the agreement to his leadership for approval next week.

"I think the concept works," he said.

Officials have been wrestling for several months over how to pay for the convention center expansion while fixing the Resch Center and maintaining adequate funds for the convention bureau's marketing efforts.

The disagreement developed amid a plan to boost the regional hotel room tax from 8 percent to 10 percent. Green Bay officials wanted to use half of that increase to fund the convention center project, but others insisted the new revenue go toward the convention bureau.

When city officials suggested also using surplus hotel tax revenue on the convention center, county officials objected that those revenues might be better used to improve the aging Resch Center.
Under the new agreement, the hotel tax increase will be dedicated to the convention bureau, and PMI Entertainment Group, which now funds the bureau, instead will pay for improvements to the Resch Center.

PMI President Ken Wachter said although the company's specific levels of funding are still under discussion, he is happy to play a role in possibly resolving the overlapping issues.
"Everybody seems to be on the same page, finally," Wachter said.

The Green Bay City Council and Brown County Board both will be asked in the weeks ahead to approve the deal.

If everything falls into place, Schmitt said, he anticipates going to the bond market by June to borrow the $12 million. The city already had agreed to provide another $8 million locally through such mechanisms as naming rights, management fees and tax increment financing.

In partnership with County Supervisor Patrick Evans, Schmitt and other city leaders have been searching for a way to finance a KI Center expansion that advocates say is needed to keep Green Bay competitive in the convention and tourism industry.

Evans said county leaders support the new deal because it preserves full funding of the convention bureau and because the city has agreed to issue bonds for the convention center project. He voiced confidence that a majority of the County Board will go along.

"We're providing the tool to jump-start the KI expansion," he said. "This is probably the best workable plan that's out there."

Reported by:  Greenbaypressgazette.com