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Source: The Post-Crescent, Appleton, Wis.迷你倉庫Aug. 06--APPLETON -- Planners of a $25 million exhibition center in the heart of downtown said Monday they've agreed on terms to manage the facility for the next 25 years.The agreement breaks free a stagnant negotiation with the Radisson Paper Valley Hotel ownership after the hotel emerged from a court-ordered receivership and sale in January."This agreement locks up a long-term partnership between the hotel manager and Fox Cities Exhibition Center group," Walt Rugland, president of the FCEC group told Post-Crescent Media. "It has been a bottleneck up to now and this clears the way for the next tasks."Mayor Tim Hanna was among several city officials surprised by the announcement. He said it builds momentum for the project but the city has been "cut out" of the lease negotiations and will want to sign off on the deal.The city still holds a key stake in the center, which would be built across the street from the hotel near Jones Park and be attached by a walk bridge. The city must purchase the $2 million site from Outagamie County and has pledged another $1.4 million for infrastructure.Planners also must convince hotel operators in Appleton and seven other municipalities to increase their room taxes to generate $19 million. Another $3.5 million would be sought from corporate sponsors. The project would generate new property tax revenue for the city.The lease announcement came a few days after an alderman pushed to force the issue by Jan. 1 or drop the city's financial support.Jay Schumerth, general manager of the Paper Valley, said the lease agreement had been in the works for months with LNR Partners, a Miami-based investment firm that bought the hotel at a sheriff's sale."We've never stopped working on this and recently convinced the LNR asset manager that this is a great project for the hotel and surrounding communities," Schumerth said. "LNR has decided to hang on to the hotel since it's such a successful property."Previously, it was unclear if the Miami firm would sell the hotel and thus complicate the exhibition center plans. Schumerth said the hotel would retain the Radisson brand.An aggressive time line could have Boldt Company construction crews on the site by early 2014, Rugland said.Lease detailsThe 25-year lease spells out operation for the exhibition center to be owned by the private FCEC group and managed by the Paper Valley. The FCEC ownership would rent the new 62,000-square-foot facility to the hotel for $1 per year.The Paper Valley would assume operating expenses, maintain furniture and equipment and contribute at least $400,000 in revenue to a capital improvement fund for the first two years. Management of the new space would go along with the hotel in the event of future ownership changes."One question we anticipate is, 'Who holds the hotel accountable for its operation?'" Rugland said. "That's the FCEC Inc. and its community board. The hammer we'll hold is arbitration. We need them to perform."Last week, Alderman Jeff Jirschele proposed hiring a consultant to shepherd the project after months of inactivity. He said Monday his $25,000 plan remains in 儲存lace and will be debated at Wednesday's meeting of the Common Council."Now more than ever we need this resolution," Jirschele said. "It bothers me a little that we haven't seen any of these documents. I don't know who signed what, and it still seems confusing."Jirschele said he's not looking to stall the project, but wants to ensure city interests are protected. His proposal calls for a project evaluation by Sept. 15 and final resolution by Jan. 1 or the city will pull its funding.Hanna stressed that the city favors the project."We all want to see it get done, but many people need to be at the table," he said. "Jay Schumerth and Walt have done great work, but (Schumerth) has a vested interest in the terms of the lease and isn't working on behalf of the community."Hanna said he has met regularly with Outagamie County Executive Tom Nelson about selling the parking lot where the facility would be built. He said the two are close to an agreement that hinges on finding new parking spots for more than 100 county employees and visitors that use the lot.Nelson said that once an agreement is reached between the two leaders, he'll present the plan to the county board for ratification, but he wouldn't speculate on a timeline Monday.Hotel room taxesIn addition to the land sale, planners will need to convince eight communities to raise their hotel room taxes to pay for construction. The taxes are charged to hotel guests.Rugland said he'd like to see Appleton approve the increase first, which would increase the city's room tax from 6 percent to 9 percent through 2032."In financial terms, this is about putting heads in beds," Rugland said. "Then as we get more room nights we'll see some rate compression and hotels can charge more per room."Early estimates suggested the new exhibition center would generate 18,000 new room nights and $8.5 million in visitor spending per year. Planners say it will create 150 new jobs along with the 100-man construction crew.Rugland said time is important because bond rates likely will climb in coming months. He said the plan would need $19 million in revenue bonds backed by the hotel tax. For each interest point increase, the project would need about another $1 million in revenue.Drawing businessSchumerth said the new facility would put Appleton more in line with Green Bay, Madison, Milwaukee and Wisconsin Dells in terms of hosting conferences."The booking pattern we're after is the 500-room conventions that have 120 exhibitors and lunch for 1,000 people," Schumerth said. He said, for example, firetruck maker Pierce Manufacturing has pledged to regularly move their annual meeting here. Now it's in Green Bay.The facility would be comprised of a 31,500-square-foot main hall with no columns and a 24-foot ceiling. The elevated walkway would help caterers serve food and allow guests to traverse from hotel rooms to the convention space.-- Nick Penzenstadler: 920-996-7226, or npenzenstadler@postcrescent.com; on Twitter @npenzenstadlerCopyright: ___ (c)2013 The Post-Crescent (Appleton, Wis.) 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