DRAFT MARKET AND FEASIBILITY ANALYSIS Proposed …

DRAFT MARKET AND FEASIBILITY ANALYSIS

Proposed Conference Center

RACINE, WISCONSIN

SUBMITTED TO: EXISTING

Mr. Dave Blank,Racine County Convention and Visitors Bureau14015 Washington AvenueSturtevant, Wisconsin, [email protected]+ 1 800 272-2463

PREPARED BY:

HVS Convention, Sport& EntertainmentFacilities Consulting

205 West RandolphSuite 1650Chicago, Illinois 60606312-587-9900

DRAFT December 4, 2013

Convention, Sports & EntertainmentFacilities ConsultingChicago, Illinois

December 4, 2013

Mr. Dave BlankRacine County Convention and Visitors Bureau14015 Washington AvenueSturtevant, Wisconsin, [email protected]

Re: Proposed Conference Center

Racine, Wisconsin

Dear Mr. Blank:

Pursuant to your request, we herewith submit our DRAFT Market and FeasibilityAnalysis of a Proposed Conference Center in Racine, Wisconsin.

We hereby certify that we have no undisclosed interest in the property, and ouremployment and compensation are not contingent upon our findings. This study issubject to the comments made throughout this report and to all assumptions andlimiting conditions set forth herein.

It has been a pleasure working with you. We look forward to hearing yourcomments.

Sincerely,

HVS Convention, Sports & Entertainment

Facilities Consulting

DRAFT DOCUMENT

Thomas A Hazinski

Managing Director

DRAFT DOCUMENT

Alex Moon

Analyst

205 West Randolph

Suite 1650

Chicago, Illinois 60606

+1 312-587-9900

+1 312-488-3631 FAX

www.hvs.com

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Table of Contents

SECTION TITLE

1. Introduction and Executive Summary

2. Market Area Overview

3. Industry Trends

4. Survey Findings

5. Comparable Venues

6. Building Program Recommendations

7. Demand and Financial Analysis

8. Statement of Assumptions and Limiting Conditions

9. Certification

Appendix A - Competitive Venue Descriptions


DRAFT December 4, 2013 Introduction and Executive SummaryMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 1-1

1. Introduction and Executive Summary

RealRacine engaged HVS Convention, Sports & Entertainment Facilities Consulting(“HVS”) to conduct a Market and Feasibility Analysis of a Proposed ConferenceCenter in Racine, Wisconsin. This study explores market demand potential andprovides recommendations on the optimal building program on a site indowntown Racine.

HVS performed the following tasks:

1. Tom Hazinski and Alex Moon traveled to Racine, Wisconsin in the week ofSeptember 30, 2013 during which they performed a site inspection,reviewed plans for the project, met with key industry participants, visitedother venues in the city, and gathered relevant data,

2. reviewed the market and feasibility analysis HVS performed on Racine in2004,

3. analyzed the economic and demographics that indicate whether and theextent to which the local market area could support the ProposedConference Center,

4. conducted and analyzed a survey of local area businesses and state andlocal associations representatives to assess their interest in using theProposed Conference Center,

5. interviewed local area business and managers of comparable conventionand conference venues,

6. compiled data on 12 in-state competitive/comparable regional venues toinform and test the reasonableness of the building programrecommendations and demand and financial forecasts,

7. recommended a facility program plan and forecasted event demand of theProposed Conference Center,

8. compared event demand forecasts to a set of comparable venues located inWisconsin to test the reasonableness of event demand assumptions, and

9. forecasted the financial operations of the Proposed Conference Center.

HVS staff collected and analyzed all information contained in this report. HVSsought out reliable sources and deemed information obtained from third parties tobe accurate.

Methodology



HVS considered the potential for developing a conference facility with sizesranging from a small conference center to a large convention center withexhibition space. Based on research of the Racine market area and the results ofour survey, we determined that a conference center with multi-purpose ballroomspace with breakout meeting rooms fit the city best. The Proposed ConferenceCenter we recommend would primarily serve smaller state associations, corporateconferences, and larger local area events. HVS projects approximately 14,000 newannual room nights in the market and almost 50,000 total attendees per year.While these new room nights would increase occupancy rates up to five percent,we expect the Proposed Conference Center to operate at a loss. This analysis doesnot include any new hotel development, but HVS recommends that the City ofRacine consider hotel, restaurant, and retail development to the proposed site.

Because the majority of event attendees at the Proposed Conference Center Racinewould drive to Racine, HVS analyzed the market area in terms of drive time radii.See the figure below for drive time demographic data.

FIGURE 1-1 DRIVE TIME DEMOGRAPHICS

Population Median Household Income ($)

2012 2017Annual

Growth2012 2017

Annual

Growth

30 minutes 327,733 331,723 0.24% 49,736 59,049 3.49%

60 minutes 2,304,865 2,344,362 0.34% 52,722 62,708 3.53%180 minutes 15,211,671 15,459,839 0.32% 53,686 62,883 3.21%

Racine, WI MSA 195,826 197,288 0.15% 50,805 59,819 3.32%

United States 0.68% 50,157 56,895 2.55%

Market/Drive Time

Source: ESRI

The 30 minute drive time population has a slightly lower median householdincome than the U.S. overall, but ESRI predicts that will change over the next fewyears. While the larger drive time radii have sizeable populations, the metro areasof Chicago and Milwaukee make up most of those populations and Racine wouldstruggle to pull in association groups from either major city.

The Root River Council of Racine and Vandewalle & Associates created a masterplan for economic redevelopment through enhancements in housing, business,transit, and public access. This initiative and a Proposed Conference Center couldcomplement each other to strengthen Racine’s local economy.

Summary of Findings

Market Area



See the figure below for a map of the proposed site.

FIGURE 1-2 THE PROPOSED SITE

Source: Google Maps

The proposed site sits west of the Radisson Hotel Racine Harbourwalk betweenLake Ave and Gas Light Ctr. The site measures approximately 3.5 acres. WeEnergies previously owned the office building in the lot and has committed todemolishing it. The City of Racine plans to purchase the site and use it forredevelopment.

HVS conducted a survey of event planners to assess the potential demand for aconference center in Racine. 46 respondents took the web-based survey, and ofthat group, 35 completed the survey while 11 partially completed it (left one ormore questions blank). Respondents included professionals from organizationsrepresenting state and local associations, government entities, corporate, andother organizations.

HVS asked respondents who had not held an event in Racine in the last five yearsto state their reasons.

Proposed Site

Survey Findings



FIGURE 1-3 REASONS FOR NOT HOSTING IN RACINE

38%

35%

15%

12%

6%

6%

6%

3%

3%

3%

Non-central location

Insufficient event space

Need more attractive destination

Predetermined location

Lack of airport access

Not enough members in the area

Racine not chosen yet

City not large enough

Limited plane flights

Insufficient hotel rooms

The top two reasons relate to Racine’s non-central location in the State ofWisconsin and insufficient event space in the City. Racine cannot improve itsdistance from attendee bases, but it could benefit from a state of the art venue withenough space for mid-sized events.

HVS asked respondents about their likelihood of booking an event in Racine if theCity built a conference center. The figure below shows their answers broken out byevent attendee origin.

FIGURE 1-4 LIKELIHOOD OF BOOKING EVENT BY ATTENDEE ORIGIN

0%

8% 8%

17%

67%

5%

40%

20% 20%15%

Very likelySomewhatLikely

Neutral SomewhatUnlikely

VeryUnlikely



VeryUnlikely

National/International Statewide



Event planners for national and international attendees showed little interest in aRacine conference center, while 45 percent of statewide event planners said theywere at least somewhat likely to plan an event.

The survey results also showed that Racine’s strengths as an event destinationinclude its attractive lakefront and low pricing. But the most important selectioncriteria for meeting planners relate to available event space and geographiclocation of the venue within the state, and Racine rated poorly on both of thesecriteria. These results indicate that Racine should focus on attracting eventdemand from local and statewide organizations and associations with its ProposedConference Center development.

HVS analyzed competitive conference and convention centers in the State ofWisconsin and compared them to each other and Racine to determine the viabilityof a conference center in Racine. The following figure summarizes the varioustypes of function spaces in each venue.

FIGURE 1-5 SUMMARY OF FUNCTION SPACES IN COMPETITIVE SET

Exhibition Halls Ballroom Meeting SF

Floor Area Divisions Floor Area Divisions Floor Area Divisions

State Competitors

Monona Terrace Community and Convention Center 37,200 sf 2 13,524 sf 4 17,646 sf 18

La Crosse Center 38,740 5 6,700 3 22,572 22

Kalahari Resorts - - 37,760 16 23,582 19

KI Convention Center 17,640 1 17,797 7 6,364 9

Radisson Paper Valley - - 13,730 4 18,954 20

Holiday Inn Stevens Point 16,020 5 8,400 1 1,403 4

Westwood Conference Center - - 7,347 4 16,448 14

Oshkosh Convention Center - - 15,400 8 3,110 4

Holiday Inn Express and Janesville Conference Center - - 13,000 3 1,249 3

Blue Harbor Resort and Conference Center - - 9,882 7 1,012 2

Best Western Harborside Inn & Kenosha Conference Center - - 9,359 6 730 3

Name of Venue

The function spaces of competitive venues in Wisconsin venues range fromapproximately 10,000 square feet to 70,000 square feet. Most of the smallervenues do not feature exhibit space, but all venues in the set have at least oneballroom and multiple meeting rooms for smaller events.

HVS ranked the set of competitive venues and Racine’s proposed site on eightcriteria: Adjacent Hotel Capacity, Total Hotel Capacity, Population, Air Access,Highway Access, Corporate Presence, Total Venue Function Space, and EventPlanner Preferences. We calculated a score with these rankings. Then, we modified

Comparable Venues



the scoring by assigning each criterion a weight between one and three, where aweight of three indicates a criterion of high importance and a weight of oneindicates a criterion of low importance. Multiplying the rank by the criterion’sweight yields a weighted score for the venues. The figure below shows theweighted scores for each venue.

FIGURE 1-6 SUMMARY OF FUNCTION SPACES IN COMPETITIVE SET

City

Adjacent

Hotel

Capacity

Total Hotel

CapacityPopulation

2 Air AccessHighway

Access

Corporate

Presence

Total

Function

Space3

Event

Planner

Preference

Total

Weight1 3 3 2 1 3 2 3 3

Madison 27 36 18 10 21 24 36 18 190

Wisconsin Dells 36 33 10 8 33 2 30 30 182

Green Bay 30 30 6 7 24 22 27 30 176

Appleton 33 27 12 6 18 20 24 24 164

La Crosse 3 24 4 2 9 12 33 30 117

Janesville 15 9 20 9 36 10 9 6 114

Racine 12 21 22 12 3 18 15 9 112

Oshkosh 21 15 16 5 15 16 12 12 112

Stevens Point 18 6 8 4 27 4 21 18 106

Wausau 3 18 2 3 30 14 18 12 100

Sheboygan 24 12 14 1 12 6 6 24 99

Kenosha 9 3 24 11 6 8 3 3 67

1) Weight of the importance of the criteria on a scale of 1 to 3 with three being most important and 1 being least important.

2) Population ranked by 90 minute drive time radii

3) Assumes 20,000 square feet of function space in a proposed Racine conference center

Racine ranks seventh on a weighted system. The scoring shows a top tier ofcompetitors including Madison, Wisconsin Dells, Green Bay, and Appleton and asecond tier of competitors with La Crosse, Janesville, Racine, Oshkosh, and StevensPoint. Our subsequent building program recommendations and performanceshould consistently follow our competitive venue analysis.

The market analysis, survey results, and review of comparable and competitivefacilities indicate that a conference center with multi-purpose ballroom space anda meeting room block would best serve the demands of smaller state associationand corporate meetings and conferences. This setup could also serve larger localsocial and entertainment events. The following figure details the recommendedfunction spaces in the Proposed Conference Center.

Building ProgramRecommendations



FIGURE 1-7 BUILDING PROGRAM RECOMMENDATION SUMMARY

Multi-purpose/Ballroom Space 15,000

Meeting Room Block 5,000Board Rooms (2) 1,000

TOTAL EVENT SPACE 21,000

Event Space Total Area (SF)

HVS recommends a flexible ballroom that could suit a wide range of event typesand sizes. The entire ballroom space could accommodate up to 1,000 persons for alocal banquet. Meeting space would provide additional room for largerconferences and support smaller individual meetings.

HVS based demand projections of the Proposed Conference Center on the previousbuilding program recommendations assuming the venue would open in January2017. HVS estimates that event demand would ramp up in its first two years andstabilize in 2019, its third year of operation. The figure below breaks out stabilizedevent demand projections by event type.

Demand and FinancialProjections



FIGURE 1-8 STABILIZED YEAR DEMAND

StabilizedEvents

Conferences 25Tradeshows 5Consumer Shows 4Assemblies 10Meetings 100Banquets 50

Total 194

Average AttendanceConferences 250Tradeshows 500Consumer Shows 1,500Assemblies 1,000Meetings 75Banquets 300

Total AttendanceConferences 6,250Tradeshows 2,500Consumer Shows 6,000Assemblies 10,000Meetings 7,500Banquets 15,000

Total 47,250

These demand projections remain consistent with HVS’s survey results andrecommendations. While meetings, banquets, and conferences make up themajority of the events, the Proposed Conference Center can hold larger localassemblies and shows.

The figure below shows the estimated number of new room nights that theProposed Conference Center would introduce to the Racine market.

FIGURE 1-9 ROOM NIGHTS INDUCED BY THE FACILITY

Type 2017 2018 2019 2020

Conferences 6,000 7,000 8,000 8,000

Tradeshows 2,000 3,000 3,000 3,000

Consumer Shows 0 1,000 1,000 1,000

Meetings 1,000 1,000 1,000 1,000

Banquets 1,000 1,000 1,000 1,000

Total 10,000 13,000 14,000 14,000



HVS projections show that the demand for the Conference Center would stabilizein 2019, and the market would gain approximately 14,000 new room nights peryear.

HVS applied a set of revenue and expense assumptions regarding facility use andoperations to develop a financial forecast for the Proposed Conference Center. HVSstarted projections in the expected opening of 2017 and used inflated dollars in itsfigures. See the figure below for a five-year forecast.

FIGURE 1-10 FIVE-YEAR FORECAST OF REVENUES AND EXPENSES

2017 2018 2019 2020 2021

OPERATING REVENUE

Facility Rental $132,000 $176,000 $193,000 $198,000 $203,000

Event Services (Gross) 66,000 88,000 96,000 99,000 101,000

Food & Beverage (Gross) 727,000 814,000 859,000 881,000 903,000

Advertising & Sponsorships 55,000 57,000 58,000 59,000 61,000

Total $980,000 $1,135,000 $1,206,000 $1,237,000 $1,268,000

OPERATING EXPENSES

Salaries $331,000 $339,000 $348,000 $357,000 $366,000

Benefits 83,000 85,000 87,000 89,000 91,000

Event Services Costs 56,000 75,000 82,000 84,000 86,000

Food & Beverage Costs 472,000 529,000 558,000 572,000 587,000

Administrative & General 20,000 23,000 24,000 25,000 25,000

Marketing & Sales 132,000 136,000 139,000 143,000 146,000

Repair & Maintenance 34,000 40,000 42,000 43,000 44,000

Supplies & Equipment 15,000 17,000 18,000 19,000 19,000

Utilities 49,000 57,000 60,000 62,000 63,000

Total $1,192,000 $1,301,000 $1,358,000 $1,394,000 $1,427,000

OPERATING INCOME (LOSS) ($212,000) ($166,000) ($152,000) ($157,000) ($159,000)

NON-OPERATING REVENUE

Fund Transfers In $304,000 $283,000 $284,000 $291,000 $299,000

Total $304,000 $283,000 $284,000 $291,000 $299,000

NON-OPERATING EXPENSES

Capital Maintenance $20,000 $34,000 $48,000 $49,000 $51,000

Management Fees 55,000 57,000 58,000 59,000 61,000

Insurance 19,000 23,000 25,000 25,000 26,000

Total $94,000 $114,000 $131,000 $133,000 $138,000

TOTAL NET INCOME (LOSS) ($2,000) $3,000 $1,000 $1,000 $2,000

The Proposed Conference Center would depend on an additional source of revenueto balance its budget, though HVS has not identified the source of revenue. A



publicly owned standalone conference venue of this size generally struggles toproduce an operating profit. A proficient set of managers could run the ProposedConference Center while maintaining a small operating loss. But complementaryadjacent developments such as a hotel, retail location, or restaurant could generateadditional demand and thereby improve conference center profitability.


DRAFT December 4, 2013 Market Area OverviewMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 2-1

2. Market Area Overview

This market area analysis reviews economic and demographic data that describethe local economy in Racine, Wisconsin. The characteristics and trends of the areaeconomy provide indicators of the performance of the Proposed ConferenceCenter. HVS analyzed the following indicators: population, income, sales, workforce characteristics, employment levels, major businesses, airport access,transportation, hotel supply, and tourism attractions.

The market area for a conference center consists of the geographical region thatoffers transportation access, lodging, and other amenities to users of the ProposedConference Center. See the map of Racine below.

RACINE, WISCONSIN

Source: ESRI

Market Area Definition



For the purposes of this study, HVS defined the market area as the Racine, WIMetropolitan Statistical Area, which includes all of Racine County. The followingmap shows the Racine, WI MSA.

RACINE, WI MSA (MAP OF MARKET AREA)

Source: ESRI

Wisconsin lies on the western edge of the Great Lakes and covers 58,154 squaremiles of land. Neighboring states include Illinois and Iowa to the south, Minnesotaacross the Mississippi River to the west, Lake Michigan to the east and the UpperPeninsula of Michigan and Lake Superior to the north. A network of interstatehighways gives drivers from Chicago and Minneapolis easy access to Wisconsin.Madison, the state capital, lies directly west of Milwaukee in southern Wisconsin.The state’s agriculture generates billions of dollars and drives the state’s economy.



Wisconsin’s farm exports provide employment to thousands of workers whotransport, process, and market food products.

Because of its proximity, Milwaukee influences economic activity and employmentin Racine. A diverse economy in greater Milwaukee includes the service,manufacturing, healthcare, and technological industries. Many of themanufacturing companies in the area have an international customer base thatgenerates visits and hotel night demand for the Milwaukee area. Healthcarecompanies generate demand through training sessions and industry conferences.Numerous colleges and universities, including the University of Wisconsin-Milwaukee, Marquette University, Concordia University, and the Milwaukee Schoolof Engineering have campuses in Milwaukee. These institutions provide a diverseeducation serving the many needs of the area employers.

The City of Racine lies on the southeastern edge of Wisconsin by Lake Michigan, 25miles south of Milwaukee and 60 miles north of Chicago, Illinois. The city coversapproximately 15 square miles of land. As of 2012, the city has a population of78,326, which makes it the fifth-largest city in the state. The city’s waterfrontlocation and marina offers boating opportunities for others in the Great Lakesarea.

HVS prepared the following geographic radius analysis to assess the potentialdrive-in markets. To augment the local market demographics, HVS used ESRI toanalyze demographics of populations within drive times of 30, 60, and 180minutes of downtown Racine. An analysis of demographics within these drivetimes provides insight into the persons residing in areas that would be potentialdrive in markets for conference, entertainment, and cultural events. The followingfigure presents the drive time map and demographic information for Racine.

Drive Time Analysis



FIGURE 2-1 DRIVE TIME MAP

Source: ESRI

The population within driving distance indicates the potential to attract delegatesto conventions and conferences and attendees to public events. The figure belowshows the population and income levels in the three drive-time areas.



FIGURE 2-2 DRIVE TIME DEMOGRAPHICS

Population Median Household Income ($)

2012 2017

Annual

Growth

Rate

2012 2017

Annual

Growth

Rate30 minutes 327,733 331,723 0.24% 49,736 59,049 3.49%

60 minutes 2,304,865 2,344,362 0.34% 52,722 62,708 3.53%180 minutes 15,211,671 15,459,839 0.32% 53,686 62,883 3.21%

Racine, WI MSA 195,826 197,288 0.15% 50,805 59,819 3.32%

United States 0.68% 50,157 56,895 2.55%

Market/Drive Time

Source: ESRI

Racine’s non-central location within Wisconsin by Lake Michigan makes it lessaccessible than other major cities in the state, but it lies close by many major citiesand states. The above table shows the population jumps by a multiple of sevenbetween the 30 minute and 60 minute drive radii. The Racine, WI MSA and itssurrounding area show a greater level of income growth than the U.S. over the nextfive years.

Although substantial populations live within driving distance of Racine, theneighboring metro areas of Chicago and Milwaukee account for most of thatpopulation. These metro areas create their own centers of gravity and have manypotentially competitive meeting and conference facilities. Racine will not be able todraw Illinois association groups out of Chicago and it cannot effectively competewith hotel and convention venues in downtown Chicago. Racine has morepotential to attract groups based in the State of Wisconsin, but its location in thesoutheast corner of the state is a disadvantage compared to the Milwaukee andMadison metro areas. These geographic realities should temper expectations ofcapturing a fair share of drive-in populations.

For this analysis, HVS used the Complete Economic and Demographic Data Sourcepublished by Woods & Poole Economics, Inc as a primary source of economic anddemographic statistics. Woods & Poole runs a well-regarded forecasting servicethat uses a database containing more than 900 variables for each county in thenation. Their regional model yields forecasts of economic and demographic trends.Census data and information published by the Bureau of Economic Analysis serveas the basis for historical statistics. Woods & Poole uses these data to formulateprojections, and the group adjusts all dollar amounts for inflation to reflect realchange.

These data are summarized in the following table.

Economic andDemographic Review


FIGURE 2-3 ECONOMIC AND DEMOGRAPHIC DATA SUMMARY

Average AnnualCompounded Change

1990 2002 2012 2017 1990-02 2002-12 2012-17

Resident Population (Thousands)Racine, WI MSA 175.5 191.5 203.3 208.1 0.7 0.6 0.5

Milwaukee-Racine-Waukesha, WI CSA 1,610.8 1,712.6 1,781.6 1,820.5 0.5 0.4 0.4

State of Wisconsin 4,904.6 5,446.8 5,782.3 6,005.0 0.9 0.6 0.8

United States 249,622.8 287,803.9 316,047.2 331,658.2 1.2 0.9 1.0

Per-Capita Personal Income*

Racine, WI MSA 26,724 33,594 33,369 35,371 1.9 (0.1) 1.2

Milwaukee-Racine-Waukesha, WI CSA 28,294 37,154 37,640 40,161 2.3 0.1 1.3State of Wisconsin 24,929 33,209 34,154 36,214 2.4 0.3 1.2

United States 26,826 33,926 36,248 38,478 2.0 0.7 1.2

W&P Wealth Index

Racine, WI MSA 98.2 99.6 93.3 93.1 0.1 (0.6) (0.1)Milwaukee-Racine-Waukesha, WI CSA 104.0 108.2 103.9 104.3 0.3 (0.4) 0.1

State of Wisconsin 93.5 98.7 95.4 95.3 0.5 (0.3) (0.0)

United States 100.0 100.0 100.0 100.0 0.0 0.0 0.0

Food and Beverage Sales (Millions)*

Racine, WI MSA 158 176 207 213 0.9 1.6 0.6

Milwaukee-Racine-Waukesha, WI CSA 1,699 1,971 2,251 2,308 1.2 1.3 0.5

State of Wisconsin 4,899 5,947 6,834 7,149 1.6 1.4 0.9United States 257,805 346,576 419,702 444,111 2.5 1.9 1.1

Total Retail Sales (Millions)*

Racine, WI MSA 1,804 2,219 2,415 2,544 1.7 0.8 1.0

Milwaukee-Racine-Waukesha, WI CSA 17,707 21,507 23,025 24,305 1.6 0.7 1.1State of Wisconsin 51,863 70,624 77,229 82,744 2.6 0.9 1.4

United States 2,620,710 3,642,407 4,122,972 4,465,222 2.8 1.2 1.6

* Inflation Adjusted

Source: Woods & Poole Economics, Inc.

DRAFT December 4, 2013 Market Area OverviewMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin

2-7

Racine’s resident population consistently increased over the past two decades, butat a slightly slower rate than the general U.S. population. Woods and Poole predictsthat the city will maintain a similar growth rate over the next five years. Over thepast decade, the metro area’s per-capita personal income fell below the personalincome levels of the State of Wisconsin and the U.S. Woods & Poole forecasts thatRacine will recover to the same income levels as Wisconsin and the country in thecoming years. Racine experienced stronger growth in food and beverage sales thanthe State of Wisconsin in the last decade, but Woods & Poole’s analysis expects it todip below the State of Wisconsin’s levels in the future.

The characteristics of an area's workforce provide an indication of the type andamount of transient visitation local businesses would generate. Sectors such asfinance, insurance, and real estate (FIRE), wholesale trade, and services produce aconsiderable number of visitors, regardless of rate. The government sector oftengenerates transient room nights, but per-diem reimbursement allowances canlimit the accommodations selection to budget and mid-priced lodging facilities.Some employers of manufacturers, construction, transportation, communications,and public utilities (TCPU) contribute many visitors to the area.

The following table shows the Racine, WI MSA workforce distribution by businesssector.

WorkforceCharacteristics


FIGURE 2-4 HISTORICAL AND PROJECTED EMPLOYMENT (000S)

Average AnnualCompounded Change

Percent Percent Percent Percent

Industry 1990 of Total 2002 of Total 2012 of Total 2017 of Total

Farm 1.2 1.3 % 0.9 1.0 % 0.8 0.9 % 0.9 0.9 % (2.2) % (0.7) % 0.1 %

Forestry, Fishing, Related Activities And Other 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.1 0.2 1.1

Mining 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 (0.5) 0.1 0.2

Utilities 0.4 0.4 0.2 0.3 0.2 0.3 0.2 0.3 (4.0) 0.2 (0.7)Construction 4.2 4.7 5.0 5.4 3.4 3.7 3.7 3.9 1.4 (3.8) 1.8

Manufacturing 25.7 28.7 20.2 22.0 17.1 18.8 16.8 17.7 (2.0) (1.7) (0.4)

Total Trade 15.4 17.1 14.9 16.3 14.1 15.6 14.7 15.6 (0.2) (0.5) 0.8

Wholesale Trade 2.7 3.0 3.5 3.8 2.9 3.2 3.2 3.4 2.1 (1.7) 2.1Retail Trade 12.7 14.1 11.5 12.5 11.2 12.4 11.5 12.1 (0.8) (0.2) 0.5

Transportation And Warehousing 1.9 2.1 2.0 2.1 2.3 2.5 2.4 2.6 0.4 1.6 1.3

Information 1.0 1.1 0.9 0.9 0.8 0.9 0.8 0.9 (1.5) (0.3) 0.1

Finance And Insurance 2.5 2.8 2.4 2.6 3.2 3.5 3.5 3.7 (0.5) 3.2 2.0Real Estate And Rental And Lease 2.0 2.3 2.3 2.5 3.1 3.4 3.4 3.5 0.9 3.3 1.5

Total Services 26.3 29.3 32.3 35.2 35.3 38.9 37.5 39.6 1.7 0.9 1.2

Professional And Technical Services 2.7 3.1 3.3 3.6 3.5 3.9 3.6 3.8 1.6 0.5 0.5

Management Of Companies And Enterprises 0.2 0.3 0.4 0.4 0.2 0.2 0.2 0.2 4.5 (5.9) (0.5)Administrative And Waste Services 3.1 3.5 4.7 5.1 5.4 5.9 5.9 6.2 3.5 1.3 1.7

Educational Services 0.6 0.7 0.9 0.9 1.1 1.2 1.2 1.2 3.3 2.1 1.8

Health Care And Social Assistance 7.9 8.8 10.3 11.2 12.5 13.8 13.5 14.3 2.3 1.9 1.6

Arts, Entertainment, And Recreation 1.4 1.6 1.6 1.8 1.9 2.1 2.0 2.1 1.1 1.6 1.3Accommodation And Food Services 5.3 5.9 5.6 6.1 5.8 6.4 6.0 6.3 0.5 0.3 0.6

Other Services, Except Public Administration 5.1 5.6 5.5 5.9 5.0 5.5 5.2 5.4 0.6 (1.0) 0.8

Total Government 8.8 9.8 10.4 11.3 9.9 10.9 10.3 10.9 1.4 (0.5) 0.8

Federal Civilian Government 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 (1.1) (0.0) (0.1)Federal Military 0.9 1.0 0.7 0.7 0.6 0.6 0.6 0.6 (2.2) (1.2) (0.1)

State And Local Government 7.5 8.3 9.3 10.2 8.9 9.9 9.4 9.9 1.9 (0.4) 0.9

TOTAL 89.8 100.0 % 91.8 100.0 % 90.7 100.0 % 94.6 100.0 % 0.2 % (0.1) % 0.8 %

MSA 89.8 — 91.8 — 90.7 — 94.6 — 0.2 % (0.1) % 0.8 %

U.S. 138,331.0 — 165,063.0 — 180,704.8 — 191,296.9 — 1.2 0.9 1.1

Source: Woods & Poole Economics, Inc.

1990-

2002

2002-

2012

2012-

2017


The service sectors make up nearly 40 percent of employment in the metro area.The area experienced recent employment declines in construction, manufacturing,and management of companies and enterprises. The finance and insurance andreal estate sectors grew most rapidly in the past decade. Other than manufacturingand utilities, Woods and Poole’s analysis predicts that the sectors that recentlyshrunk in employment will expand in the coming years.

Providing additional context for understanding the nature of the regionaleconomy, the following table presents a list of the major employers in the in theRacine, WI MSA.

FIGURE 2-5 MAJOR EMPLOYERS

Rank FirmNumber of

Employees

1 All Saints Health Care System 2,661

2 S.C. Johnson & Son, Inc. 2,600

3 CNH America LLC 2,500

4 Racine Unified School District 2,500

5 Diversey, a division of Sealed Air Corporation 1,200

6 InSinkErator 1,000

7 Aurora Healthcare Hospital 970

8 City of Racine 940

9 Ruud Lighting 618

10 Nestle 500

Source: Racine County Economic Development Corp.

Healthcare networks and medical services lead the list of major employers and adiverse set of prominent corporations ranging from agricultural and householdproduct manufacturing and education. The overall diversity indicates a stablecorporate presence that could generate demand for a conference center.

Unemployment statistics provide a measure of the local economy’s health andcomparisons to state and national trends. The following table presents historicalunemployment rates for the market area.

Major Business andIndustry

UnemploymentStatistics


FIGURE 2-6 UNEMPLOYMENT STATISTICS

Year MSA State Country

2003 7.0 % 5.6 % 6.0 %

2004 6.0 5.0 5.52005 6.0 4.8 5.1

2006 5.6 4.7 4.6

2007 5.7 4.8 4.62008 5.7 4.8 5.8

2009 10.4 8.7 9.3

2010 10.1 8.5 9.62011 9.1 7.5 8.9

2012 8.5 6.9 8.1

Recent Month - August

2012 8.9 % 7.2 % 8.2 %

2013 8.8 6.8 7.4Source: Local Area Unemployment Statistics

Historically, Racine has experienced greater unemployment rates than the State ofWisconsin and the U.S. Like the rest of the country, the recession and financialcrisis in 2007 and 2008 elevated unemployment rates in 2009 and 2010. In recentyears, the gap between the unemployment rates of the county and the country hasdecreased, signifying greater demand for corporate meeting space and industryconferences.

In 2012, the Root River Council of Racine teamed with Vandewalle & Associates, aWisconsin-based regional economy analysis group, to compile the Root RiverCorridor Redevelopment Plan (“RootWorks”). The master plan aims to renew upto 325 acres of properties adjacent to Root River and increase public connectivityto the Root River Corridor by repairing pathways and potentially constructing anew boardwalk. See the figure below for a summary of the planned economicareas of redevelopment.

Root River CorridorRedevelopment Plan


ROOTWORKS – ECONOMIC REDEVELOPMENT PLAN

Source: Vandewalle & Associates, Inc.

The Transit Oriented Development District could support a commuter trainconnection to Chicago and fill up to 250,000 square feet of vacant office space inthe Mound Avenue Business Center. The Root River Council has focused onreviving the 50-acre Machinery Row industrial district. Proposed projects includecleaning and occupying the riverfront properties on Water Street, generating retailstores and business development on Marquette and 6th Street, and increasingconnectivity and access to the riverfront. Other ideas for Racine market


development include utilizing the unused land in the Case New Holland DowntownRiverfront Campus, retail and entertainment venues in the Belle Harbor District,and creating mixed uses for the city-owned Walker Site Redevelopment.

Airport passenger counts indicate a market’s ability to support conference events.Trends in passenger counts reflect local business activity and the area’s economichealth. Event planners consider airport access when choosing a destination fortheir conferences and meetings.

Milwaukee County owns and operates General Mitchell International Airport(“MKE”), and it serves many of Racine County’s long distance travel needs. Theairport lies approximately 20 miles north of downtown Racine. O’HareInternational Airport, approximately 60 miles south of downtown Racine, providesa less convenient but important alternative to MKE with direct connections toevery major city in the U.S. and many international destinations. Currently,AirTran, American Airlines, Delta, United Express, and Southwest service MKE.

The following table illustrates the previous decade’s passenger traffic statistics forMKE.

FIGURE 2-7 MKE AIRPORT STATISTICS – PASSENGER TRAFFIC

Year Passenger TrafficPercent

Change*

Percent

Change**

2003 6,142,124 — —

2004 6,661,105 8.4 % 8.4 %

2005 7,268,000 9.1 8.8

2006 7,299,294 0.4 5.9

2007 7,135,419 (2.2) 3.8

2008 7,956,968 11.5 5.3

2009 7,946,532 (0.1) 4.4

2010 9,848,377 23.9 7.0

2011 9,522,456 (3.3) 5.6

2012 7,515,070 (21.1) 2.3

*Percent change from the previous year

**Compounded percent change from first year of data

Source: General Mitchell International Airport

In 2010, Frontier Airlines made MKE one of their hubs, significantly increasingpassenger air traffic. In 2012, Frontier Airlines closed its hub at MKE due to pricecompetition with Southwest/AirTran, resulting in a reduction in passenger traffic

Airport Traffic


to pre-2010 levels. The figure below further illustrates the decrease in directflights.

FIGURE 2-8 MKE AIRPORT STATISTICS – DIRECT FLIGHTS

YearDirect Air

Carrier Flights

Change from

Previous Year

2003 177,756 —

2004 188,133 5.8 %

2005 193,779 3.02006 179,001 (7.6)

2007 177,453 (0.9)

2008 164,768 (7.1)2009 154,107 (6.5)

2010 174,885 13.52011 157,269 (10.1)

2012 116,644 (25.8)

Source: General Mitchell International Airport

While it is not known as a tourist destination, Racine supports a variety of touristand leisure attractions. The peak season for tourism starts in May and ends inSeptember. During other times of the year, weekend demand comprises oftravelers passing through en route to other destinations, people visiting friends orrelatives, and other similar weekend demand generators. Primary attractions inthe area include the following:

ReefPoint Marina features 921 slips and serves many Great Lakes boatingneeds. Originally, Racine Harbor Marina owned the property. In 2012, RacineCounty bought the marina from the company for 6.7 million dollars. TheCounty now owns and operates the marina.

Famed architect Frank Lloyd Wright designed several buildings in Racine.They include the SC Johnson Administration Building and the Golden RondelleTheater. Many of the buildings provide tours for visitors.

The Racine Art Museum houses the third-largest collection of contemporarycraft in North America. In addition to permanent exhibitions, the Museumfeatures major exhibitions of new work, focusing on ceramics, fibers, glass,metals, and wood.

Kringle, an authentic Danish pretzel-like pastry, represents one of Racine’s keycultural foods. Earlier this year, the State of Wisconsin adopted kringle as itsOfficial State Pastry. The Food Network, the Travel Channel, the Today Show,

Tourist Attractions


and numerous travel and food magazines have featured Racine’s famouskringle creations.

The City of Racine owns the 50-acre North Beach, one of only two CertifiedClean Beaches designated by the Blue Wave Committee of Washington, D.C.The beach features concessions, live music, and paved bike paths runningbetween the Racine Zoo to the north and the downtown area to the south.

SC JOHNSON ADMINISTRATION BUILDING

A conference center’s ability to attract out-of-town groups depends greatly on theavailability of adjacent or nearby hotel rooms within walking distance. Moreover,different events have individual preferences with respect to the types of hotelsthat best meet the needs of their delegates and attendees. Most planners ofprofessional conventions, conferences, and tradeshows prefer large blocks of full-service hotel rooms in nationally branded upper-upscale hotels. Some consumershow and assembly event planners prefer less expensive, limited-service hoteloptions that offer guest amenities such as complimentary breakfast and freeinternet connections. The quality of hotels indicates the market’s ability to supportthe Proposed Conference Center. The figures below show the inventory of hotelswithin the Racine area that may serve the Proposed Conference Center, broken outby size and service level.

Lodging Supply


FIGURE 2-9 SUMMARY OF LODGING SUPPLY BY SIZE

Size (Number of Guest Rooms)

Number of

Properties

Number of Guest

Rooms

Less than 50 6 220

50 to 99 7 439

100 and over 5 668

Total 18 1,327

Source: STR

FIGURE 2-10 SUMMARY OF LODGING SUPPLY BY SERVICE LEVEL

Chain Scale

Number of

Properties

Number of Guest

Rooms

Upper Upscale 1 222

Upscale 1 121

Upper Midscale 5 326

Midscale 3 181

Economy 4 263

Independent 4 214

Total 18 1,327

Source: STR

The majority of hotels in Racine have fewer than 100 rooms. The Marriott Racinehas the most rooms with 222. Racine offers a balanced mix of hotel service levels,along with a fair number of independent properties. The Radisson Hotel RacineHarbourwalk on the lakefront features 121 rooms and sits east across the streetfrom the Proposed Conference Center site.

This section discusses a wide variety of economic indicators for the Racine marketarea. It boasts a diverse economy through its variety of corporations in healthcare,agriculture, and household products manufacturers. Despite the economicrecession, unemployment statistics and the RootWorks master plan indicate astrong rate of recovery relative to the rest of the country. As a conference andmeeting option, Racine features moderately convenient air travel with bothGeneral Mitchell International Airport and O’Hare International Airport within areasonable driving distance. Although the drive-in population exceeds 15 million,its geographic location is a disadvantage and it lacks the extensive amenitiesavailable in Milwaukee and Chicago. The city currently lacks an event site withballroom space, meeting space, and nearby hotel capacity in the same venue. With

Conclusion


a Conference Center, Racine’s traditional tourist offerings and North Beach couldattract corporations and associations to meet in the city.


DRAFT December 4, 2013 Industry TrendsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 3-1

3. Industry Trends

In this section, HVS presents an analysis of the convention, conference, tradeshowand meeting industry, including trends in the supply and demand of meeting andevent facilities, as well as trends in expenditures and meeting planner preferences.The purpose of this trends analysis is to provide background informationnecessary to assess the potential for a conference center in Racine, Wisconsin. Thissection of the report also provides definitions of industry terms used throughoutthe remainder of this report.

Convention and conference centers measure their performance by tracking eventactivity, but the definition and classification of events lacks consistencythroughout the industry. Each convention center or marketing organization hastheir own way of classifying and measuring event demand. HVS has developed aproprietary method of event classification called OASIS Event ClassificationMethod© or OASIS©, which is a convenient acronym for five criteria of eventcategorization: Organization, Attendees, Scope, Industry, and Set-up. See the figurebelow.

FIGURE 3-1 OASIS EVENT CLASSIFICATION SYSTEM

OASIS© EventClassification System



Following are definitions of the criteria in the OASIS Event Classification Method©

and descriptions of the categories within each.

ORGANIZATION—the organization that sponsors or owns the event provides animportant area of classification and can be described in five mutually exclusivecategories:

Corporations—corporations, or private business interests, are responsible fororganizing the majority of events. The event organizers may be internal to thebusiness or professional meeting planners.

Associations—associations are usually membership organizations centeredon specific business types, professions, or political purposes.

Government—international, national, state, or local governmentorganizations sponsor events. This category is particularly important inmarkets with a large government office presence.

Exhibition Company—exhibiting organizations are companies or subsidiariesof companies established for the purpose of owning and promoting exhibitingevents, such as trade and consumer shows.

Event Promoter—event promoters are organizations that exist for thepurpose of promoting concerts, entertainment, and other types of live eventsthat require production set-up.

Sports Enterprise—sports enterprises are companies or subsidiaries ofcompanies that exist for the purpose of owning and promoting sporting events.

Social, Military, Educational, Religious, Fraternal and Ethnic(“SMERFE”)—although similar to associations, this category includes thetypes of organizations described in the title. Sometimes called “affinity groups”SMERFE represents a distinct category because members of theseorganizations use personal disposable income for membership dues and eventattendance and therefore tend to be more price-sensitive than associationswith professional memberships.

The Organization criterion is most useful to marketing and sales organizations thatrely on this information to make decisions on the allocation of staff and resourcesaccording to the type of organization sponsoring the event. Other industryparticipants, such as destination management companies and venue operators,also need to understand the type of organizations active in sponsoring events andvalue personal relationships with the event planners that represent them.

ATTENDEES—Event attendees can be placed in three distinct categories thatdistinguish the ways in which attendees gain access to events:



Private—attendees come to the event by invitation only and do not pay aregistration or admission fee. Private attendees may be individually asked toattend, as to a wedding, or invited by virtue of belonging to a certain group,such as company employees or shareholders.

Registered—attendees do not necessarily need an invitation, but typically payan advance registration fee to attend the event. Registered attendees are oftencalled delegates or qualified buyers and they usually attend an event formultiple days.

Public—the event is open to the general public. Attendees may need topurchase a ticket for admission such as at a consumer show. Other civic eventsmay be free of charge.

In addition, some events have combination shows with an initial period ofexclusive registered attendance and subsequent public attendance.

The Attendees category is particularly important to venue operators and industryanalysts. Understanding the type of attendee at a given event is critical forassessing the impact on convention center operations and projecting economicimpact. The length of stay of attendees and their spending patterns variesconsiderably among the types of attendees.

SCOPE—this category refers to the geographic origin of the attendees. Events areclassified accordingly if a significant proportion of the attendees come from theindicated geographic region surrounding the convention center. Five categoriescapture all the potential geographic scopes and are self-explanatory:

International

National

Regional

State/Provincial

Local

Understanding the origin of attendees is critical to event planners and in theestimation of the economic impact of events. Events that draw attendees fromlarger geographic regions tend to have higher new spending associated with theevent. The allocation of marketing and sales resources may also break downaccording to the geographic scope of events.

INDUSTRY—in North America, HVS recommends relying on the North AmericanIndustry Classification System (“NAICS”) which replaced the previously used U.S.Standard Industrial Classification (“SIC”) system. NAICS was developed jointly by



the U.S., Canada, and Mexico to provide new comparability in statistics aboutbusiness activity across North America. Other economic regions and countrieshave similar industrial classification systems that are widely used and can beadopted for the purposes of classifying events by industry.

NAICS has hundreds of categories but these categories are organized hierarchicallyin five levels. All categories can be rolled up into twenty of the top levels in thehierarchy. However, not all top level industry classifications are useful for eventclassification because little or no event activity is associated with them. Other toplevel categories, such as Manufacturing, are too broad to provide meaningfulinformation, and level two or three categories can be used to form a usefulbreakdown of events.

The choice of industry classifications should result in a reasonable share of eventsfalling into each category. According to the Tradeshow Week data book, theleading industries that are represented by conventions, tradeshows and exhibitioninclude:

Medical and Health Care

Home Furnishings and Interior Design

Sporting Goods and Recreation

Apparel

Building and Construction

Landscape and Garden Supplies

Computers and Computer Applications

Education

Gifts

Associations

Use of the NAICS codes allows for the orderly roll-up of industrial classificationsacross different events and venues, regardless of the categories or the hierarchicallevels that different people may choose to use. Industrial classification informationis useful for those planning to develop new events and for other analysts that needto understand how trends in economic health of the underlying industries affectthe success of particular events and venues.

SPACE SETUP—this final criterion provides for the categorization of events byset-up of the function spaces they utilize. These categories are not mutually



exclusive as events may use any combination of the five primary types of eventset-up.

Breakout—typically involves the use of meeting rooms, boardrooms or othermulti-purpose spaces for meeting functions in a classroom or meeting setting.This set-up may involve some catering services such as coffee breaks orlunches.

Banquet—includes the set-up for catered banquets events such as a weddingsand may include some staging for presentations such as at a general sessionevent.

Exhibit—includes the set-up displays in exhibition halls or other multi-purpose spaces. Concession services and buffet lunches are often a componentof this set-up.

Assembly—includes set-up in theater style seating in plenary halls and fixedseat theaters or other multi-purposes spaces that are used primarily forassemblies and general sessions.

Production—includes the set-up for concerts, entertainment, sporting eventsand other types of events that require significant staging, lighting, and otherlive-event related set-up.

Application of the OASIS© system can provide precise definitions of commonlyused event classifications. All commonly used terms for event types can be definedby a combination of three OASIS© categories: organization, attendees, and spaceset-up.

Conventions—associations, government, and SMERFE organizations registerattendees for multi-day events. Facility set up includes breakout, banquet andexhibit space set-up and may include plenary sessions. Typically, the primarypurpose of a convention is information exchange.

Tradeshows—provide a means for wholesalers and retailers to transactbusiness with industry buyers. Like conventions, tradeshows offer a forum forexchanging industry ideas. In order to clearly differentiate conventions fromtradeshows, HVS assumes that only corporations and enterprises can sponsorand produce tradeshows. Similar to conventions, tradeshows requireregistered attendees. While they also require exhibit space set-up, they onlysometimes require banquet, plenary, and/or breakout space set-up.

Combination Shows—are either corporate or enterprise produced, typicallywith an initial period of attendance by registered attendees only, and later bythe public. Always requiring exhibit set-up, they sometimes also requireplenary, banquet and/or breakout set-up for additional portions of their show.

Event Types



Consumer Shows—public, ticketed events featuring the exhibitions ofmerchandise for sale or display. Exhibition companies produce consumershows, as they provide a means of product distribution and advertising. Theyonly require exhibit space set-up.

Conferences—require a mix of banquet and breakout space set-up as well asoccasional assembly space, but do not require any exhibit set-up. Conferencescan be conducted by any organization type, but always require attendees to beregistered.

Meetings—only require breakout space set-up. Like conferences, they can beproduced from any of the organization types, but unlike conferences, they areprivate events to which one must be invited.

Banquets—only require a banquet set-up for food and beverage meal service.These events also can be produced by any organizational type, and are eitherare held privately or require guests to register.

Assemblies—usually involve a ceremony, a speech, or another similar activitythat attracts a crowd of spectators. Produced by any type of organization,assemblies are always public events. Additionally, assemblies only require aplenary set-up.

Fairs—usually involve an exhibit booth set-up for a public event in which anumber of organizations or companies represent themselves and/or a productor service, with a similar theme or purpose uniting the event. Corporations,associations, governments, or SMERFE groups may present a fair.

Concert/Entertainment—usually a concert or some form of liveentertainment, owned and organized by an event promoter for the public.Entertainment events only require production set-up.

Sports/Amateur Sports—require only a production set-up. Attendees tosporting events, which are always organized by sports enterprises, may bepublic or registered. Some sporting events have both a registered and publicaspect to the event over the span of a few days.

The purpose of this section is to describe the conference, convention, and meetingindustry and analyze trends in the number of events, attendance, and the supply offacilities.

The convention and conference center industry experienced significant year-over-growth in supply from 2000 through 2006. Since 2007, the rate of growth insupply has slowed, but remained positive. As the majority of convention andmeeting facilities involve public funding, economic conditions affect the level of

Trends

Supply Trends



public investment in convention and meeting facilities that are intended tostimulate economic activity. As poor economic conditions continue to constrainpublic budgets nationwide, lack of available funding for convention and meetingfacilities will continue to limit supply growth in the near future. As the economyimproves, supply growth will likely remain low as convention venue projects havelong lead times due to planning, financing and construction requirements.

A number of facilities will be undergoing expansions in the next few years, asdescribed below.

TABLE 3-2 FUTURE FACILITY EXPANSIONS & UNDER CONSTRUCTION

Year Project

2017 Miami Beach Convention Center (FL)

o 1 billion redevelopment of center and surrounding district

2016 Moscone Convention Center (San Francisco, CA)

o $520 million in facility improvements

2016 George R. Brown Convention Center (Houston, TX)

o 1,000-room headquarter hotel

2016 Henry B. Gonzales Convention Center (San Antonio, TX)

o $325 million expansion

2014 Washington Convention Center (Washington, D.C.)

o 1,175-room headquarter hotel

2014 Green Bay K1 Convention Center (WI)

o $20 million in facility expansion and improvments

2014 Spokan Convention Center (WA)

o 90,000 sq ft expansion

2013 Owensboro Convention Center (KY)

o 169,000 sq ft convention center

o 151-room hotel

2013 San Jose Convention Center Expansion (CA)

o 35,000 sq ft ballroom space

o 39,000 sq ft meeting space

2013 Riverside Convention Center (CA)

o $44 million in facility renovation

o 42,400 sq ft expansion

2013 Music City Center (Nashville, TN)

o New 500,000+ sq ft center & 800-room hotel

TBD San Diego Convention Center (CA)

o $520 mil expansion of convention center and hotel

o 400,000 sq ft of event space and 500-room hotel



As evidenced in the above facility expansions, the type of supply growth hastransformed in recent years to meet planners’ needs. Meeting and breakoutsessions have become more common during large conventions, thus increasing theneed for additional meeting space and/or flexible function space. As the industryhas matured, meeting planner expectations for quality have increased, includingproximity of full-service hotels to event facilities.

The Center for Exhibition Industry Research (CEIR) has created an index of “total”demand in the convention and meeting industry and compared the demand indexto the United States GDP. The following figure demonstrates how the combined or“Total” demand index shown in the above chart moves in step with the U.S. GDP.

FIGURE 3-3 GROWTH IN EXHIBITION DEMAND VS. GDP GROWTH (% CHANGE)

Source: Center for Exhibition Industry Research

As limited funding mechanisms have slowed supply growth, demand has alsodecreased. Corporations, associations, and governmental entities decreased totaldemand for convention and meeting space in 2009, largely due to strainedbudgets. The year 2010 saw growth in GDP as well as the beginnings of a recoveryin the exhibition industry.

Demand Trends



TABLE 3-4 DEMAND INDICATORS

2010 Predictions 2011 Predictions 2012 Predictions

Number of Meetings 3% 8% 2%

Projected Attendance 5% 2% 2%

Average Meeting Length 0% 0% 0%

Average Expenditure Per Meeting 1-% 5% 1%

Demand Indicator

Estimated Rate of Growth

Source: Future Watch 2010, 2011; Business Barometer 2012

In November of 2010, Red 7 Media conducted a survey of large convention andtradeshow producers on their top criteria for site selection.

FIGURE 3-5 SITE SELECTION CRITERIA FOR PLANNERS

Criteria

Hotel Room Prices 75%

Convention Center and Exhibition Hall Size 67%

Airport Capacity and Air fare 65%

Hotel Room Availibility 63%

Availibility of Open Dates 59%

Hotel Block Attrition Policies 57%

Hotel Room Quality 57%

Proximity of Headquarter Hotel(s) to the Convention Center 55%

Convention Center and Exhibi tion Hall Quality 51%

Source: Red 7Media

Percentage of Show Producers

In addition to actual facility size, the survey indicates that site selection is largelybased on two important amenities - hotels and airports. This reaffirms thechanging dynamic of the convention and meeting industry that is now focused onreducing costs for the hosting organization and its attendees as well as maximizingaccessibility.



Conference centers typically have a mix of meeting and ballroom space and areideally suited for conferences, meetings, and small conventions. Conferencecenters often host weddings, banquets, and other social functions along with smallconventions and tradeshows. Each year the International Association ofConference Centers (IACC) conducts an in-depth survey of IACC certifiedconference centers in North America and issues a trends report based on itsfindings. The report distinguishes between residential and non-residentialconference centers and provides a statistical and financial profile for each. Whilethe majority of conference centers across the country do not have an IACCcertification, the overall trends reported by survey do provide some insight intothe industries which have the most direct implications on the operations of apossible conference center in Racine.

FIGURE 3-6 PROFILE OF NORTH AMERICAN CONFERENCE CENTERS

0%

10%

20%

30%

40%

50%

Residential

Non-Residential

Source: IACC Trends in Conference Center Industry, 2013 Edition

Unlike convention centers, which are typically owned by a city or other publicentity, conference centers have a variety of ownership structures. Public entities,private corporations, universities, and non-profit organizations often ownconference centers for their internal meetings and training. Function spaces arethen rented to external organizations when not in use by the primary tenant.

Conference Centers



FIGURE 3-7 PROFILE OF CONFERENCE CENTER OWNERSHIP

0%

10%

20%

30%

40%

Residential

Non-Residential


Unlike convention centers which utilize exhibit space to introduce new productsand services in an industry, conference centers are most often used for trainingand continuing education purposes.



FIGURE 3-8 TYPES OF MEETINGS IN CONFERENCE CENTERS

0%

10%

20%

30%

40%

50%

Management

Planning

Professional /

Technical

Training /

ContinuingEducation

Sales

Meetings

Other

Residential

Non-Residential


As the meetings industry as a whole continues to rebound from recession, meetingplanners also report being less concerned about the negative publicity associatedwith hosting events in upscale properties and destinations than in recent years.

Another indicator of the national recession’s impact on the meetings market is thegeographic scope of meetings. As groups reduced their meetings budget,conference facilities began to rely more heavily on local meetings and events.



FIGURE 3-9 CONFERENCE CENTER ATTENDANCE BY TYPE

0%

10%

20%

30%

40%

50%

60%

70%

80%

Residential

Non-Residential


The majority of meeting demand (75 percent) for non-residential conferencecenters was generated by corporate and association sources, as shown in thefigure below.



FIGURE 3-10 NON-RESIDENT CONFERENCE CENTER DEMAND SEGMENTS

54.0%

20.5%

11.6%

1.3%6.0%

6.6%

Corporate

Association

Government

Civic

SMERF

Other


Over the past few decades, the meeting and convention industry has evolveddramatically from a budding industry to a more mature one that has become animportant driver of the national economy. As an established industry, the meetingand convention industry has been marked by rapid growth in the last four decadesand a subsequent slowdown in supply growth in the late 2000s. As the economicrecession continues to affect the level of demand and available budgets forconventions and meetings, the industry continues to evolve.

Changes in Demand and Supply Transformation: As discussed earlier, thematurity of the industry has sharply increased competition. Nearby or attachedhotel rooms, flexible meeting space, price points at convention centers and hotels,and airport capacity and rates continue to drive site selection, and thus dictatehow supply changes over time. Quality of convention facilities and hotelscontinues to be an important factor in site selection.

Travel Costs: Organizations hosting and planning events continue to work withtightened budgets, as do attendees. Recent increases in travel costs have decreasedthe desire to travel for some attendees and exhibitors. In the long run, expansions

Convention andMeeting Trends for theFuture



in the transportation system and continued innovations, as well as improvedeconomic conditions, are likely to support the growth of the meeting industry.

Electronic Meetings: In recent years, industry experts have speculated thatimprovements in telecommunications technology would supplant the need forface-to-face meetings. While data indicates that some meetings and events havebeen replaced by webinars or other electronic forms of meetings, in the long run,electronic meetings act as a demand generator for future meeting growth byexpanding the networks and interactions of businesses and organizations. Furtheradvancements in communications technology will be necessary before electronicmeeting became a realistic substitute for face-to-face meetings.

Mixed-Use Developments: For many markets, the presence of conference andconvention centers offer an opportunity to develop an adjacent mixed-useattraction with land uses such as hotels, retail, dining, sports venues, and otherentertainment uses. Some conference and convention centers have become thecenter of their own “districts,” offering a wide variety of entertainment options todelegates, event organizers, or exhibitors. The growth of mixed-use developments,particularly as economic conditions have improved, will continue to change themeeting and convention industry as supply transforms.

As the meetings and convention industry continues its slow recovery from 2009lows, Racine may have the opportunity to capture some of the local and regionalmarket share of events. But the conference and convention industry remainshighly competitive and price sensitive and has not fully recovered from the effectsof the Great Recession. Some of the impacts will have lasting effects on theindustry such as substitution to electronic meetings and reduced spending byassociations and convention event planners.

The pace of growth in convention and event space has slowed to a trickle.Expansion space in other communities is unlikely within the next decade, butimprovements to and replacement of existing buildings will continue ascommunities understand that ongoing investment in their venues is necessary toremain competitive. Much of the recent focus has turned to improving overalldestination appeal rather than expanding the amount of function space. Racinewould need to make similar efforts to be successful.

Implications forRacine


DRAFT December 4, 2013 Survey FindingsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 4-1

4. Survey Findings

HVS designed and conducted a survey of event planners to provide a basis forassessing the potential demand for a proposed conference center in downtownRacine. The survey gathered information from professional event planners abouttheir event needs and event destination preferences.

HVS emailed 263 professionals from organizations representing state and localassociations, government entities, corporate and other organizations. HVSintroduced the purpose of the survey and provided a link to the web-based survey.Responses included the following:

46 respondents took the web-based survey. Of these, 35 completed thesurvey while 11 partially completed the survey (left one or more questionsblank).

6 people replied that they would not serve as good resources for thesurvey, due to location or not currently working in event planning.

18 percent of survey subjects with valid email addresses responded to thesurvey.

The following summary of responses highlights key results.

To understand the types of organizations responding to the survey, HVS asked aseries of questions for the respondents to describe the organizations theyrepresent and their past use of venues in Racine and other locations. Respondentsmay represent more than one type of organization, as shown in the figure below.

Overview



FIGURE 4-1 RESPONDING ORGANIZATIONS BY TYPE

91%

6%

6%

6%

6%

3%

3%

Association

Education

Government

Sports

Other

Religious

Corporate

Event planners representing associations make up over 90 percent of the sample,followed by those representing educational institutions, governmentorganizations, and sports groups.

HVS asked event planners to identify the types of events they plan.

FIGURE 4-2 TYPES OF EVENTS PLANNED

90%

75%

50%

40%

35%

5%

5%

Conference

Meeting

Training/Workshop

Convention

Trade Show

Entertainment show/event

Sports-related events and competition

The majority of survey respondents plan conferences, meetings, and workshops.Some respondents work with conventions and trade shows. A small number ofrespondents plan sports and entertainment events.



HVS asked event planners whether they had planned an event in Racine during thepast five years.

FIGURE 4-3 EVENT HELD IN RACINE DURING PAST 5 YEARS

15%

85%

Yes

No

Only 15 percent of respondents said they had held an event in Racine in the lastfive years. For those respondents who have not, HVS asked them to identify theirprimary reason or reasons.

FIGURE 4-4 REASONS FOR NOT HOSTING IN RACINE

38%

35%

15%

12%

6%

6%

6%

3%

3%

3%



Need more attractive destination

Predetermined location

Lack of airport access

Not enough members in the area

Racine not chosen yet

City not large enough

Limited plane flights


Outside of the control of RealRacine, local government, and other stakeholders,almost 40 percent of the respondents cite Racine’s non-central location inWisconsin as the primary reason for not hosting in the city. Many respondents alsosaid that Racine does not have enough space for the events they plan. Some



planners responded that Racine does not have destination appeal for their events,or that their events occur in a different predetermined location.

For those planners who said they had held an event in Racine in the last five years,HVS asked them to identify other venues in which they placed their events.

FIGURE 4-5 PAST EVENTS IN WISCONSIN BY VENUE

71%

71%

71%

57%

57%

57%

43%

43%

29%

29%

29%

14%

Kalahari Resorts

KI Convention Center

La Crosse Center

Blue Harbor Resort and Conference Center

Radisson Paper Valley Hotel and Conference Center

Other

Holiday Inn Stevens Point

Monona Terrace

Oshkosh Convention Center

Ramada Inn Eau Claire Convention Center

Westwood Conference Center

Holiday Inn Express and Janesville Conference Center

Some of the largest venues in the competitive set, such as Kalahari Resorts, KIConvention Center, and the Lacrosse Center received the greatest number ofresponses.

Before responding to a series of questions regarding their perception of Racine asgroup event location, HVS asked meeting planners to identify their level ofknowledge about the destination. See the figure below.

Meeting PlannerPreferences andPerceptions



FIGURE 4-6 KNOWLEDGE OF RACINE

7%

37% 37%

20%

Veryknowledgeable

Somewhatknowledgeable

Not veryknowledgeable

Not knowledgeableat all

Just over half of the respondents said they were either not very knowledgeable ornot knowledgeable at all about Racine. Only a small percentage said they werevery knowledgeable of Racine as an event destination. Some event planners couldavoid planning events in Racine due to their lack of knowledge of the area.

HVS asked meeting planners to state their beliefs on Racine’s main strengths andweaknesses as an event destination. The following figures summarize theirresponses.



FIGURE 4-7 RACINE MARKET STRENGTHS

41%

19%

15%

11%

11%

11%

7%

7%

7%

4%

4%

4%

Lakefront

Nice downtown area

Close to airport

Easy interstate access

Close to Chicago

Low hotel prices

Marriott Hotel

Close to Milwaukee

Good restaurants

Friendly community

Good service

Good mayor

Event planners cite Racine’s waterfront location as its key market strength. Manyothers note that Racine’s downtown restaurants and amenities attract attendees.Other strengths include its closeness to General Mitchell International Airport,good drive-in access, and low hotel prices.

FIGURE 4-8 RACINE MARKET WEAKNESSES

49%

11%

9%

9%

6%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%


Not a convention destination

Too far from airports


Limited restaurant selection

City is too small

Low quality hotels

No real strengths

Crime

Not enough to do

City lacks unique culture

Not enough attendees in area

Lack of transportation

Old facilities

Poverty




Almost half the event planners cited Racine’s non-central location as the city’sprimary weakness. They ranked Racine’s lack of perception as an eventdestination second with 11 percent of respondents. Issues related to airportaccess, insufficient function space, hotel quality, and restaurant selection receivedseveral mentions from the survey respondents.

HVS asked survey respondents to identity their five most important criteria whenselecting an event venue and destination. The following figure presents thepercentage of survey respondents who indicated each selection criteria as amongtheir top five.

FIGURE 4-9 MOST IMPORTANT SELECTION CRITERIA

68%

56%

47%

47%

38%

38%

32%

32%

24%

24%

21%

21%

12%

6%

3%

3%

Availability of facility event space

Geographic location within state

Price of facility rentals

Price of hotel rooms

Overall level of destination appeal

Availability of hotel rooms

Ability to attract attendees

Availability of air travel

Convenience for drive-In visitors

Quality of hotel rooms

Proximity of hotels to event spaces

Dining, retail & entertainment options

Recreation, tourism & cultural activities

Cleanliness

Adequate technology services

Green building and conferencing practices

Most event planners cite the availability of event function space and geographiclocation within the state as the most important criteria when selecting an eventlocation. These findings confirm that Racine’s non-central location in the statemakes it less viable for statewide conferences and meetings. Almost half theplanners said pricing of facility and hotel rooms determines their choice. Whilementioned less often than event space, overall destination appeal also influencesevent planners’ decisions.



HVS then asked event planners to rate Racine on these same criteria. In thefollowing figure, a rating of five means excellent and a rating of one means poor.

FIGURE 4-10 RACINE’S RATING ON IMPORTANT CRITERIA

3.5

3.0

2.5

2.4

2.3

2.3

2.3

2.3

2.3

2.1

2.1

2.0

1.6

1.5

Price of hotel rooms

Cleanliness

Price of facility rentals

Dining, retail & entertainment options

Proximity of hotels to event spaces

Availability of facility event space

Availability of air travel

Quality of hotel rooms

Recreation, tourism & cultural activities

Geographic location within state

Availability of hotel rooms

Convenience for drive-in visitors

Ability to attract attendees

Overall level of destination appeal

Event planners ranked Racine’s hotel room prices as better than otherdestinations. Racine received poor scores on its geographic location within thestate, and more planners selected location as a criterion than any other. Inaddition, they gave Racine low scores on its ability to attract attendees and itsdestination appeal.

HVS asked event planners about their likelihood of booking an event in Racine ifthe city had a conference center that met their event needs. The following figurepresents the breakdown of their responses.

Event Characteristicsand FacilityRequirements



FIGURE 4-11 LIKELIHOOD OF BOOKING EVENT IN RACINE

3%

26%

18% 18%

35%

Very likely SomewhatLikely


Very Unlikely

Just over half of the survey respondents said that they would be either somewhatunlikely or very unlikely to host an event in Racine. Still, approximately 30 percentof the event planners said they would be at least somewhat likely to book an eventin Racine.

In order to determine building program needs, HVS asked event planners toidentify and describe their most typical or important event. This informationincluded the name of the event, the type of event, approximate attendance, and thefacility and lodging requirements. For this analysis, HVS removed the results forthose event planners that would be unlikely to host an event in Racine. HVScategorized the responses by event type and analyzed the aggregate requirementsof the event types. The following figure presents the breakdown of eventsdescribed by the event planners.



FIGURE 4-12 EVENTS BY TYPE

44%

19%

17%

14%

3%

3%

Conference

Meeting

Convention

Training/Workshop

Trade Show

Sports-related events andcompetition

Conferences make up almost half of the events described by the surveyrespondents, followed by meetings, conventions, and workshops.

HVS asked survey participants to identify the scope (geographic origin ofattendees) of their most important or typical event.

FIGURE 4-13 EVENTS BY ATTENDEE ORIGIN

34%

3%

60%

3%

National/International

Regional (multi-state)

Statewide

Local

The events described by meeting planners attract a mix of national and stateattendees. HVS analyzed how planners’ preferences would change based on eventattendee origin. See the figure below.



FIGURE 4-14 LIKELIHOOD OF BOOKING EVENT BY ATTENDEE ORIGIN

0%

8% 8%

17%

67%

5%

40%

20% 20%15%



VeryUnlikely



VeryUnlikely

National/International Statewide

Two thirds of event planners for national or international attendees said theywould be very unlikely to plan an event in a proposed conference center,compared to only 15 percent of event planners for statewide attendees. Almosthalf the planners for statewide events said they were at least somewhat likely toplan an event. Racine would struggle to gain national or international meetingsbusiness with a new conference center, and should focus on local and statewideorganizations.

Event attendance levels indicate the quantity and size of function spaces thatevents require. HVS calculated the average attendance for each event typereported by the survey respondents. The following figure excludes sports andentertainment events which typically have significantly higher attendance.



FIGURE 4-15 AVERAGE EVENT ATTENDANCE BY TYPE OF EVENT

670

517

461

350

120

Convention

Meeting

Conference

Trade Show

Training/Workshop

The above figure shows that attendance levels vary widely by event type. Exhibit-based conventions have higher average attendance levels than conferences andworkshops that primarily use ballroom and meeting space.

HVS asked event planners to identify specific facility exhibit, banquet, and meetingroom needs for their events. Since facility needs vary by event type, HVS considersonly those events which require a specific function. For example, HVS excludedmeetings from the analysis of exhibit space requirements. The following figuresshow distributions of space requirements for exhibit space, banquet seating, andmeeting rooms.

Banquet seats and hotel room block requirements for conventions, conferences,meetings and other events can vary significantly and do not necessarily followattendance levels.

Banquet and HotelRoom BlockRequirements



FIGURE 4-16 EVENT BANQUET SEAT REQUIREMENTS

0

250

500

750

1,000N

um

be

ro

fB

anq

ue

tSe

ats

Re

qu

ire

d 88% of events require 500banquet seats or fewer

Survey respondents required an average of approximately 250 banquet seats fortheir events. Only a few respondents claimed that their event required over 500banquet seats, and no one said the venue needed over 1,000 seats.

The following figure shows hotel room block requirements.



FIGURE 4-17 HOTEL ROOM BLOCK REQUIREMENTS

0

500

1,000

1,500

2,000

Nu

mb

er

of

Ho

telR

oo

ms

Re

qu

ire

d 74% of events require 500hotel rooms or fewer

80 percent of survey respondents require a room block of at least 50 hotel rooms.The average response indicated a hotel room block requirement of approximately350 rooms, with a quarter of responses needing more than 500 hotel rooms.

Survey respondents provide a sample representation of the target market for theProposed Conference Center, with the vast majority of planners representingassociation-based groups in Wisconsin. Key findings and conclusions include thefollowing:

Based on historical bookings by event planners, the strongest competitionfor the Proposed Conference Center comes from larger and more populouscities in Wisconsin, such as Milwaukee.

The greatest deterrent to booking events in Racine is its non-centrallocation and distance from attendee bases. Event planners also noteinsufficient function space for larger events.

Racine has several strengths as a group event destination, including itsdining options, easy drive-in access from major population centers, andattractive lakefront. Other planners note the low price of hosting events inRacine.

The most important selection criteria for meeting planners pertain to theavailability of event space and the geographic location of the venue within

Survey Conclusions andImplications for Racine



the state. Racine rates low on both of these criteria, but it rates higher onprice of hotel rooms and cleanliness.

Attendee origin affects the level of interest in the Proposed ConferenceCenter. Planners of statewide events have some interest in a facility inRacine, while national and international event planners show little to nointerest.


DRAFT December 4, 2013 Comparable VenuesMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 5-1

5. Comparable Venues

This analysis of comparable venues provides a basis for our building programrecommendations and forecasts of event demand and financial operations. HVScompares the function spaces in each of the facilities, adjacent hotel capacities, andcharacteristics of the markets relevant to the success of the venues. It concludeswith an assessment of the relative strengths and weaknesses of Racine.

Based on the market area overview, we assume that a conference or conventioncenter in Racine would compete with other cities in Wisconsin. Event plannersselect host cities for their events based on the overall package that a city offers.Several factors determine a city’s strength and potential in the meetings market,including the attributes of the convention facilities, lodging supply, the economicand demographic profile of the community, transportation access, tourismamenities, and overall destination appeal. This analysis will help in understandingthe competitiveness of Racine and the Proposed Conference Center.

The figure below shows the set of potentially competitive venues.

FIGURE 5-1 COMPETITIVE VENUES

State Competitors

Monona Terrace Community and Convention Center Madison WI 68,370 sfLa Crosse Center La Crosse WI 68,012

Kalahari Resorts Wisconsin Dells WI 61,342

KI Convention Center Green Bay WI 41,801Radisson Paper Valley Appleton WI 32,684

Holiday Inn Stevens Point Stevens Point WI 25,823

Westwood Conference Center Wausau WI 23,795Oshkosh Convention Center Oshkosh WI 18,510

Holiday Inn Express and Janesv ille Conference Center Janesv ille WI 14,249

Blue Harbor Resort and Conference Center Sheboygan WI 10,894Best Western Harborside Inn & Kenosha Conference Center Kenosha WI 10,089

Name of Venue Locat ionTotal

Function

Conventions, tradeshows, and consumer shows depend heavily on exhibitionspace. The amount and quality of exhibition space determines the size and types ofevents that the venue can accommodate. The exhibition space available at each of

Exhibition SpaceAssessment



the selected comparable facilities provides an indication of the amount of spaceappropriate for Racine. See the figure below.

FIGURE 5-2 EXHIBITION SPACE IN COMPETITIVE VENUES

State Competitors sf # hallsLa Crosse Center 38,740 5

Monona Terrace Community and Convention Center 37,200 2

KI Convention Center 17,640 1Holiday Inn Stevens Point 16,020 5

Kalahari Resorts 0 0

Radisson Paper Valley 0 0Westwood Conference Center 0 0

Oshkosh Convention Center 0 0

Holiday Inn Express and Janesville Conference Center 0 0Blue Harbor Resort and Conference Center 0 0

Best Western Harborside Inn & Kenosha Conference Center 0 0

Average 27,400 3

Only four of the competitive venues have exhibit space. Three of the four venueswith exhibit halls also rank in the top three for total function space. Generally,smaller facilities do not have exhibit halls. If Racine builds a smaller facilityrelative to its potential competitors, it might not require dedicated exhibit space.

Conference and convention centers need banquet space as facility operatorsattempt to grow food service revenues at their facilities and event planners seek ahigher level of service for their attendees. In addition to social events (weddingsand fundraisers), several other types of events, such as conventions andtradeshows, typically require food services in a ballroom setting. Event plannershold general assemblies at conventions and tradeshows in a ballroom with atheater or banquet set-up. Consequently, the size of the ballroom can determine avenue’s event size capacity. The ballroom’s maximum number of divisions affectsits ability to host simultaneous events. The figure below compares availablebanquet space in the competitive venues.

Ballroom SpaceAssessment



FIGURE 5-3 BALLROOM SPACE IN COMPETITIVE VENUES

State Competitors sf # divisions

Kalahari Resorts 37,760 16

KI Convention Center 17,797 7

Oshkosh Convention Center 15,400 8

Radisson Paper Valley 13,730 4


Holiday Inn Express and Janesville Conference Center 13,000 3

Blue Harbor Resort and Conference Center 9,882 7

Best Western Harborside Inn & Kenosha Conference Center 9,359 6

Holiday Inn Stevens Point 8,400 1

Westwood Conference Center 7,347 4

La Crosse Center 6,700 3

Average 13,900 6

Unlike exhibit space, all venues in the competitive set have ballroom space. Withthe exception of the Holiday Inn Stevens Point, all of the competitive facilities havedivisible ballroom space. Racine would require ballroom space with multipledivisions to offer facilities for conferences and larger social events.

Meeting rooms can accommodate sub-groups as they break out of larger generalsessions at conventions and tradeshows. Additionally, these smaller rooms canaccommodate self-contained meetings, training sessions, seminars, classes, and avariety of small meeting functions. Event planners tend to use a facility’s meetingrooms most frequently. Generally, conference and convention centers should offermeeting space proportionate to the exhibition space available at the facility. Theoptimum amount of meeting space can vary depending on a facility’s targetmarket.

The following figure compares available meeting space in the venues.

Meeting/Break-outRoom Assessment



FIGURE 5-4 MEETING SPACE IN COMPETITIVE VENUES

State Competitors sf # rooms

Kalahari Resorts 23,582 19

La Crosse Center 22,572 22

Radisson Paper Valley 18,954 20


Westwood Conference Center 16,448 14

KI Convention Center 6,364 9

Oshkosh Convention Center 3,110 4

Holiday Inn Stevens Point 1,403 4

Holiday Inn Express and Janesville Conference Center 1,249 3

Blue Harbor Resort and Conference Center 1,012 2

Best Western Harborside Inn & Kenosha Conference Center 730 3

Average 10,279 11

All of the competitive venues offer multiple meeting rooms. Meeting room sizesrange from 170 square feet to over 1,200 square feet. Racine would requiremeeting space to accommodate sub-groups and smaller gatherings.

To attract out-of-town groups, an adequate supply of nearby hotel rooms shouldsupport the lodging needs of delegates, exhibitors, and other attendees. Eventplanners value proximity and connectivity when evaluating hotel packagesavailable in competing communities. Generally, they compare the number ofrooms offered at one or more hotels adjacent or connected to the conference andconvention centers. Other important factors include hotel brands, service levels,building ages, management, and available meeting and banquet spaces in thesehotels.

Adjacent HotelCapacity



FIGURE 5-5 ADJACENT OR INTEGRATED HOTEL ROOM CAPACITY

State Competitors

Kalahari Resorts 750

Radisson Paper Valley 390

KI Convention Center 241

Monona Terrace Community and Convention Center 240

Blue Harbor Resort and Conference Center 182

Oshkosh Convention Center 176

Holiday Inn Stevens Point 149

Holiday Inn Express and Janesville Conference Center 142

Best Western Harborside Inn & Kenosha Conference Center 111

La Crosse Center 0

Westwood Conference Center 0

Average 265

The La Crosse Center and Westwood Conference Center have no adjacent hotelrooms. The competitive set averages 265 adjacent hotel rooms without them, andthe competitive set averages 216 adjacent hotel rooms with them. The RadissonHotel Racine Harbourwalk offers 121 rooms, below both averages, and theProposed Conference Center could benefit from additional and adjacent hotelsupply.

Local area population data can provide evidence of a community’s overalleconomic size and ability to support public services and visitor amenities forconference/convention center users. Because most convention centers primarilytarget out-of-town users, local area population figures rarely correlate directlywith overall demand potential. However, population data can provide a basis forunderstanding a community’s ability to support and sustain a meeting andconference venue, the surrounding neighborhood, and market. Additionally,population size can indicate demand potential for specific types of events such aslocally generated meetings, banquets, religious events, graduation ceremonies, andconsumer shows. See the figure below for a comparison of each competitivevenue’s population within a 90-minute drive time radius.

Population Comparison



FIGURE 5-6 90 MINUTE DRIVE TIME POPULATION OF COMPETITIVE SET

Venue City

90 Minute Drive

Time Population

Best Western Harborside Inn & Kenosha Conference Center Kenosha 9,160,172

Proposed Racine Conference Center Racine 6,525,619

Holiday Inn Express and Janesville Conference Center Janesville 5,753,221

Monona Terrace Madison 3,306,745

Oshkosh Convention Center Oshkosh 2,808,892

Blue Harbor Resort and Conference Center Sheboygan 2,746,945

Radisson Paper Valley Appleton 1,707,757

Kalahari Resorts Wisconsin Dells 1,452,406

Holiday Inn Stevens Point Stevens Point 1,278,167

KI Convention Center Green Bay 1,276,480

La Crosse Center La Crosse 624,472

Westwood Conference Center Wausau 579,810

Average 3,101,724

Source: ESRI

Racine’s proximity to both Chicago and Milwaukee yield a greater drive timepopulation than most of the venues in the competitive set. But Racine wouldstruggle to draw attendees away from both of those cities, so a greater drive timepopulation does not guarantee a more successful meeting and conference venue.

The density and breadth of a city’s corporate base indicates its potential in themeetings industry. A city’s established presence in a particular industry increasesits appeal as a destination for conventions, conferences, training, and otherindustry-specific events. The following figures demonstrate how Racine compareswith its current competitors in terms of the total number of businessestablishments.

Corporate Comparison



FIGURE 5-7 NUMBER OF BUSINESS ESTABLISHMENTS IN COMPETITIVE SET

Venue Region

2010 TotalBusiness

Establishments

2010

Establishmentswith >500

Employees

Monona Terrace Community and Convention Center Madison, WI MSA 15,132 2,352KI Convention Center Green Bay, WI MSA 7,621 1,218

Radisson Paper Valley Appleton, WI MSA 5,818 1,071

Proposed Racine Conference Center Racine, WI MSA 4,049 611Oshkosh Convention Center Oshkosh-Neenah, WI MSA 3,602 656

Westwood Conference Center Wausau, WI MSA 3,397 560

La Crosse Center La Crosse, WI MSA 3,379 602Holiday Inn Express and Janesville Conference Center Janesville, WI MSA 3,292 574

Best Western Harborside Inn & Kenosha Conference Center* Kenosha County 3,014 532Blue Harbor Resort and Conference Center Sheboygan, WI MSA 2,681 420

Holiday Inn Stevens Point** Portage County 1,615 245

Kalahar i Resorts*** Columbia County 1,394 157AVERAGE 4,583 750

*Used Kenosha County numbers in place of Chicago-Naperville-Joliet, IL-IN-WI MSA

**Used Portage County numbers in place of Stevens Point, WI µSA

***Used Columbia County numbers in place of Madison, WI MSA

Source: U.S. Census

Transportation linkages, including airports, can affect the success of conferenceand convention centers that target regional and national user groups. One of thebest indicators of an airport’s ability to enhance a convention center’s draw is itsservice capacity, generally measured as total annual passenger volume, or traffic.An airport with relatively high annual passenger volumes generally is moreconvenient and has a wider draw than an airport with relatively low annualpassenger volumes.

Air Service Capacityand Highway Access



FIGURE 5-8 AIR SERVICE AT PRIMARY AIRPORTS IN COMPETITIVE SET

Airport City 2012 Flights 2011 Fl ights 2010 Flights

General Mitchell International Airport Milwaukee 7,515,000 9,522,000 9,848,000

Dane County Regional Airport Madison 1,578,000 1,457,000 1,500,000

Austin Straubel International Airport Green Bay 547,000 687,000 687,000

Outagamie County Regional Airport Appleton 454,000 478,000 537,000

Central Wisconsin Airport Mosinee 232,000 264,000 306,000

La Crosse Regional Airport La Crosse 185,000 196,000 212,000

Chippewa Valley Regional Airport Eau Claire 42,000 37,000 35,000

Rhinelander/Oneida County Airport Rhinelander 22,000 58,000 50,000

Source: General Mitchell International Airport, RITA Bureau of Transportation Statistics

Compared to the competitive set, Racine lies closest to General MitchellInternational Airport. Residents of Racine can travel approximately 20 miles northof the city to reach the Milwaukee airport. Its air traffic makes up over 70 percentof the entire competitive set’s total air traffic.

A proposed conference center in a market like Racine depends on local attendees.Event planners prefer more accessible venues, and they can attract attendeesmore effectively with a location close to the highway. The following figure showsthe driving distance required between the nearest highway and the venue (or inthe case of Racine, the proposed venue).

FIGURE 5-9 DRIVE DISTANCE TO NEAREST HIGHWAY OF COMPETITIVE SET

Venue City

Drive distance to

highway (mi)

Holiday Inn Express and Janesville Conference Center Janesville 0.4

Kalahari Resorts Wisconsin Dells 0.5

Westwood Conference Center Wausau 0.6

Holiday Inn Stevens Point Stevens Point 1.3

KI Convention Center Green Bay 1.4

Monona Terrace Madison 2.3

Radisson Paper Valley Appleton 2.3

Oshkosh Convention Center Oshkosh 3.0

Blue Harbor Resort and Conference Center Sheboygan 3.8

La Crosse Center La Crosse 4.0

Best Western Harborside Inn & Kenosha Conference Center Kenosha 7.2

Proposed Racine Conference Center Racine 9.1



Event planners could struggle to hold events in the downtown Racine area due toits long distance from the freeway relative to other venues in the competitive set.

HVS ranked Racine along with its state competitors on each of the destinationselection criteria discussed in this report. The criteria include hotel supply, drivetime population, corporate presence, airport and highway access, total functionspace of the primary venue, and event planner preferences from the survey asdiscussed in Section 4. The rank is based on the numerical data associated witheach criterion, with 12 being the highest rank and one being the lowest rank.

The figure below shows the rank of Racine and each of its competitive cities oneach criteria and the total of all scores.

FIGURE 5-10 COMPETITIVE VENUE ANALYSIS – UNWEIGHTED SCORES

City

Adjacent

Hotel

Capacity

Total Hotel

CapacityPopulation

1 Air AccessHighway

Access

Corporate

Presence

Total

Function

Space2

Event

Planner

Preference

Total

Madison 9 12 9 10 7 12 12 6 77

Wisconsin Dells 12 11 5 8 11 1 10 10 68

Green Bay 10 10 3 7 8 11 9 10 68Appleton 11 9 6 6 6 10 8 8 64

Racine 4 7 11 12 1 9 5 3 52

Janesville 5 3 10 9 12 5 3 2 49Oshkosh 7 5 8 5 5 8 4 4 46

La Crosse 1 8 2 2 3 6 11 10 43

Stevens Point 6 2 4 4 9 2 7 6 40Wausau 1 6 1 3 10 7 6 4 38

Sheboygan 8 4 7 1 4 3 2 8 37

Kenosha 3 1 12 11 2 4 1 1 351) Population ranked by 90 minute drive time radii


Racine ranks 5th best in the overall score. Its strengths are in corporate presence,air access, and drive time population. It has weaknesses in highway access, totalfunction space, and event planner preference. The overall results show that Racinesits among a group of other mid-sized cities in Wisconsin.

The event planner survey demonstrated that not all criteria place equally inimportance. Event planners indicated that the amounts of available function spaceand hotel capacity matter most. Air access is not an important criterion becauseRacine has a drive-in state market. To adjust for the difference in importance ofdestination selection criteria, HVS assigned a weight between 1 and 3, where a

Competitive VenueRankings



weight of three indicates a criterion of high importance and a weight of oneindicates a criterion of low importance. Multiplying the rank by criterion’s weightyields a weighted score for each venue.

The figure below shows the weighted scores for each venue.

FIGURE 5-11 COMPETITIVE VENUE ANALYSIS – WEIGHTED SCORES

City

Adjacent

Hotel

Capacity

Total Hotel

CapacityPopulation2 Air Access

Highway

Access

Corporate

Presence

Total

Function

Space3

Event

Planner

Preference

Total

Weight1 3 3 2 1 3 2 3 3

Madison 27 36 18 10 21 24 36 18 190

Wisconsin Dells 36 33 10 8 33 2 30 30 182

Green Bay 30 30 6 7 24 22 27 30 176

Appleton 33 27 12 6 18 20 24 24 164

La Crosse 3 24 4 2 9 12 33 30 117

Janesville 15 9 20 9 36 10 9 6 114

Racine 12 21 22 12 3 18 15 9 112

Oshkosh 21 15 16 5 15 16 12 12 112

Stevens Point 18 6 8 4 27 4 21 18 106

Wausau 3 18 2 3 30 14 18 12 100

Sheboygan 24 12 14 1 12 6 6 24 99

Kenosha 9 3 24 11 6 8 3 3 67

1) Weight of the importance of the criteria on a scale of 1 to 3 with three being most important and 1 being least important.

2) Population ranked by 90 minute drive time radii


On a weighted basis, Racine ranks 7th best in the state along with Oshkosh.Madison, Wisconsin Dells, Green Bay and Appleton rise to the first tier of thecompetitors. Racine lies in the middle of a set of second tier cities includingLa Crosse, Janesville, Oshkosh, and Stevens Point. Highway access emerges as anotable weakness of the important destination selection criteria.

The recommended building program and demand estimates should remainconsistent with Racine’s competitive ranking. Racine demonstrates some potentialto attract state based and local meeting and group events, but a conference centerin Racine would not on operate among the first tier of cities in Wisconsin.

For a detailed description of each competitive venue, please see Appendix A of thisreport.


DRAFT December 4, 2013 Building Program RecommendationsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 6-1

6. Building Program Recommendations

The building program recommendations presented herein describe the floor areasof various types of function spaces and other important amenities for the ProposedConference Center. To formulate these recommendations, HVS relied on its siteinspection, a user survey, a competitive city analysis, comparisons of meetingspace in competitive venues, and knowledge of standard industry practices. Thisbuilding program should serve as a guide for subsequent physical planning aimedat providing the desired facility program elements.

As discussed previously in this report, user surveys clearly indicate several keyfactors that would influence meeting planners’ venue selection process whenconsidering Racine, Wisconsin and the Proposed Conference Center.

Surveys show that the lack of function space detracts event planners fromholding their events in Racine. They rate the availability of function space astheir most important destination selection criteria. Racine has anopportunity to address this deficit by building new function space.

Racine’s non-central location is the major barrier to attracting meetings andgroups from around the state. Event planners rate location as the secondmost important destination selection criteria. Since the City of Racinecannot overcome this barrier, it should gear facility development to arelatively low level of anticipated meeting and conference demand. Toutilize the venue fully, the proposed development should also provide spacefor local social, civic, and festival events.

Racine has limited potential to attract business from outside the state;however, Wisconsin association, corporate and social business holds somepromise. Forty-five percent of Wisconsin state event planners would bewilling to place events in a new conference center if it met their needs.

Dedicated exhibition space would not appropriately fit a conference venuein Racine. Event planners interested in Racine indicated little need forexhibition space. Rather, conference center development should focus onmulti-purpose ballroom and meeting space that can serve up to 500persons for meetings and conferences and up to 1,000 persons for localbanquet events.

The following site map identifies the location of the Proposed Conference Center.The Proposed Site



FIGURE 6-1 THE PROPOSED SITE

Source: Google Maps

The proposed site lies at the corner of Lake and Gaslight Streets, one block west ofthe Radisson Hotel. The Southeast corner of the site provides waterfront access.Approximately 3.5 acres, the site would easily support the conference centerbuilding program recommended in this report along with other complimentaryland uses. Adjacent land uses include the Lakeshore Towers residential units, aparking deck, surface parking, the marina, and the Radisson hotel. One block fromMain Street, the site is within walking distance of downtown retail andrestaurants.

A vacant office building currently occupies the site, but its owner, We Energies, hascommitted to demolishing the building, cleaning the site, and selling it to the Cityof Racine by the end of 2014. The City of Racine would pay $150,000 for the site.

The site would handle conference center development well. While not the subjectof this study, we encourage mixed use development with an adjacent hotel,restaurant and retail development on the site.



IMAGES OF THE PROPOSED SITE

HVS recommends the development of approximately 21,000 square feet offunction space. The function space would have the dual purposes of serving largelocal social and entertainment events and smaller state association and corporatemeetings and conferences.

The following figure shows the recommended amounts and capacities of eventfunction spaces in the Proposed Conference Center.

Facility ProgramRecommendations



FIGURE 6-2 BUILDING PROGRAM RECOMMENDATION

Theatre Banquet Classroom

Multi-purpose/Ballroom Space 15,000 1,670 1,250 1,030 90

Half Hall 1 7,500 830 630 520 40

Half Hall 2 7,500 830 630 520 40

Third-Halls

Division 1 5,000 560 420 340

Sub-division 1a 1,667 190 140 110

Sub-division 1b 1,667 190 140 110

Sub-division 1c 1,667 190 140 110

Division 2 5,000 560 420 340

Division 3 5,000 560 420 340

Sub-division 3a 1,667 190 140 110

Sub-division 3b 1,667 190 140 110

Sub-division 3c 1,667 190 140 110

Meeting Room Block 5,000

Division 1 3,000

Sub-division 1 1,000 110 80 70

Sub-division 2 1,000 110 80 70

Sub-division 3 1,000 110 80 70

Division 2 2,000

Sub-division 4 1,000 110 80 70

Sub-division 5 1,000 110 80 70

Board Rooms 1,000

Board Room 1 500

Board Rooms 2 500

TOTAL EVENT SPACE 21,000

Event Space Total Area (SF)

Capacities (# persons)

Exhibit Booths

(10'x10')

A divisible 15,000 square foot multi-purpose ballroom could accommodate up to1,000 persons for a local banquet and serve meeting space for smaller groups. Thevenue should provide five thousand square feet of divisible breakout meetingspace. Those rooms would give the venue the capacity to hold simultaneous eventsthat require meeting and banquet space. Two board rooms would serve smallcorporate and association meetings.

In addition to the rentable public function spaces, the conference center wouldrequire the support spaces shown in the figure below.



FIGURE 6-3 SUPPORT AREAS

.

Lobby / Prefunction Areas 7,000

Ballroom Support 2,600Meeting Room Support 900Adminstrative Offices 800

Food Service 2,300

Building Operations/Dock 4,800General Circulation 6,300Mechanical/Electrical Equipment 5,300

TOTAL SUPPORT SPACE 30,000

Support Space Total Area (SF)

Building management would need support areas of approximately 30,000 squarefeet for building operations, catering services, pedestrian circulation, and otheramenities in a state-of-the-art conference center.

While site conditions and other issues will dictate the actual layout of theproposed Proposed Conference Center, HVS recommends a flexible ballroom thatplanners could use for a wide range of event types and sizes. The figure belowshows a recommended configuration of the multi-purpose ballroom.

Multi-Purpose/Ballroom



FIGURE 6-4 MULTI-PURPOSE BALLROOM CONFIGURATION

The ballroom should hold a well-finished space with ceiling heights ofapproximately 20 feet. A carpeted floor should contain utility boxes that providepower and communications services so that the room can serve light exhibits andclassroom configurations that require power and internet connections. The roomshould offer variable lighting should and create a range of candlepower for varioustypes of events. Visitor access should come from a well appointed pre-functionarea, which should surround the function space on three sides and be separatedfrom a service corridor. The service corridor should connect to the kitchen, storagefacilities, and other back–of-house functions.

Meeting space provides essential breakout space for larger conference andconvention events and supports stand-alone meetings and food and beveragefunctions. Meeting room blocks in areas should maintain a separation of attendeeand service access. The figure below shows the recommended configuration of themeeting space.

Pre-Function Area

Service Corridor

Attendee Entrance

Service Entrance

Movable Wall

Meeting Spaces



FIGURE 6-5 RECOMMENDED MEETING ROOM CONFIGURATION

The meeting space should have the flexibility to support events that requiremeeting sized of 1,000, 2,000, and 3,000 square feet. One fixed wall would dividethe space into two sections and movable walls should provide further divisibility.Attendees would need a ceiling height of approximately 15 feet when using therooms in an open configuration. Meeting rooms should provide state-of-the-artaudio visual technology and internet connectivity.

In addition to the function spaces provided above, the gross floor area included inthe Proposed Conference Center would include the following elements:

Lobby and Pre-function Areas – A well-appointed lobby and pre-function areas should provide event planners areas for greeting andregistration, social gatherings, and well-defined public access to themultipurpose ballroom and meeting rooms. This space is alsoappropriate for stand-alone receptions, meals, and other communityevents.

Circulation – Circulation space should provide for the movement ofattendees into and through the venue. These areas would include andhallways, connecting walkways, and bridges as required. Depending onthe concept plan, these areas could also include vertical circulation(stairwells, elevators, and escalators).

Pre-Function Area

Service Corridor

Attendee Entrance

Service Entrance

Movable Wall

Ancillary and SupportSpaces



Service access – Service corridors should provide non-public access tothe event hall and meeting rooms as well as connection to the facility’sloading docks, mechanical rooms, and storage.

Drop-off zone – The venue should have a well-defined vehicular drop-off area and pedestrian access solely for the uses of event attendees.

Loading areas – Service access separate from the drop-off zone, truckdocks, and waste disposal areas necessary to support the venue.

Kitchen – Further investigation should determine the extent to whichthe main production kitchens could also serve the needs of the venue.At a minimum, a pantry kitchen capable of accommodating a singlemeal of 1,000 guests should be incorporated into the space.

Storage – Adequate and convenient equipment storage is important tothe efficient operation of the facility.

Facility Operations – Spaces needed to support the facility’s physicalplant, including HVAC, plumbing, electrical and fire protection systems.

Parking – the on-site capacity for parking should be determined inview of the amount of available off-site parking that could service theConvention Center.

A more precise determination of the floor areas would require a concept plancreated by a design firm that illustrates how the proposed venue alterations wouldfit on the site. The process of concept planning would likely require adjustments tothe recommended floor areas.

In addition to the meeting function spaces described above, the proposed venueshould also contain a variety of public areas that define the venue as an attractive,self-contained destination for meeting attendees as well as other tourists and localresidents. These public areas may include:

Lounges, plazas, and other designated areas for informal meetings andrelaxation,

outdoor entertainment areas for small concerts, receptions, or otherconvention center related functions,

casual food and beverage outlets including coffee shops, delis, and desserts,and

Public Spaces



waterfront views and access.

The 3.5-acre site provides the opportunity to development the conference centerin a mixed-use project. While the scope of this study excludes other land uses, HVSrecommends investigation of the following additional land uses.

A high quality focused service hotel development of 150 to 250 rooms.Along with the Radisson, a new hotel property of this size could providethe necessary supporting hotel infrastructure.

Further analysis of parking needs to determine the amount of on-siteparking necessary to support the conference center. The existing deck andparking lots may meet most parking needs.

Restaurants on the site with a bar and lounge would help to activate thesite by increasing local visitation and serve conference center and hotelguests.

Further analysis of these options would be necessary to determine their scope andfeasibility.

To verify the suitability and capacity of the proposed site ability to accommodate avenue with 21,000 square feet of function space, HVS investigated the site layoutsof several similarly sized venues.

Hurst Conference Center in Hurst, Texas – 19,906 square feet of functionspace.

Landers Center in Southaven, Mississippi – 17,000 square feet of ballroomspace.

Sheraton Milwaukee Brookfield Hotel – 18,659 square feet of functionspace.

Edmonton Marriott – 14,000 square feet of function space.

Deerfoot Inn & Casino in Calgary, Alberta – 14,000 square feet of ballroomand meeting space.

The following figures show existing comparable developments.

Complementary LandUses

Comparable VenueLayouts



HURST CONFERENCE CENTER

Source: Hurst Conference Center



LANDERS CENTER – CONVENTION HALL

Source: Landers Center



SHERATON MILWAUKEE BROOKFIELD HOTEL – FIRST FLOOR

Source: Sheraton Milwaukee Brookfield



SHERATON MILWAUKEE B

EDMONTON MARRIOTT

Convention, Sports & Entertainment

Building Program RecommendationsMarket and Feasibility Analysis Proposed Conference Center

SHERATON MILWAUKEE BROOKFIELD HOTEL – LOWER LEVEL


EDMONTON MARRIOTT

Source: Edmonton Marriott

Building Program RecommendationsProposed Conference Center – Racine, Wisconsin 6-13

LOWER LEVEL




DEERFOOT INN & CASINO

As a recently developed venue, Hurst Conference CenterbuildingvenuesProposed Conference Centerrecommended function space along with the necessary entrance and loadingzones. The City of Racine could require mplanning to

Convention, Sports & Entertainment

Building Program RecommendationsMarket and Feasibility Analysis Proposed Conference Center

Source: Deerfoot Inn & Casino

As a recently developed venue, Hurst Conference Centerbuilding recommendations for the Proposed Conference Center.venues also serve as examples the City of Racine might want to pursue.Proposed Conference Center site can accommodate the 21,000recommended function space along with the necessary entrance and loading

The City of Racine could require more detailedplanning to determine the site’s precise capacity.

Building Program RecommendationsProposed Conference Center – Racine, Wisconsin 6-14

As a recently developed venue, Hurst Conference Center compares best to HVS’sfor the Proposed Conference Center. But the other

the City of Racine might want to pursue. Theaccommodate the 21,000 square feet of

recommended function space along with the necessary entrance and loadingore detailed site analysis and concept


DRAFT December 4, 2013 Demand and Financial AnalysisMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 7-1

7. Demand and Financial Analysis

HVS forecast the event demand and financial performance for Racine’s ProposedConference Center for a five-year period. For the purposes of this analysis, HVSassumes the proposed conference center will open on January 1, 2017.

HVS based these projections on information revealed in the market overview,analysis of comparable facilities, phone interviews with local parties, and eventplanner surveys. The demand projections further reflect the recommendedbuilding program for the Proposed Conference Center. Demand projections alsoassume highly qualified, professional sales and management teams for theconference center.

In addition to the event planner survey, HVS interviewed representatives fromlocal area corporations and operators of some comparable venues to understandtheir event needs and potential uses of the Proposed Conference Center. Keyfindings and conclusions of these interviews include the following.

Some planners in the Racine metro area would prefer to hold their events inthe downtown area rather than travel to other larger cities, but the lack ofbanquet and meeting breakout space prevents them from doing so.

Some organizations currently hold their training sessions and meetings in theRacine Marriott, and they could hold some of these events in downtown Racineif space were available.

Many companies in the area have in-house space on their campuses for theirsmaller meetings and administrator conferences, so the demand from localcorporations would be limited to the larger meeting and special events thatneed to occur off campus.

Some comparable Wisconsin convention and conference venues have suffereddeclines in state association demand. These negative trends have beenattributed to: 1) economic conditions that depressed group meeting demandand 2) increased competition from Kalahari Resorts. Some venues haveexperienced increased demand as the economy has improved or as they haveimproved their venues.

Venue expansions and improvements will intensify competition in theWisconsin association market. Expansions and improvements are currentlyoccurring in Green Bay, Appleton, and Oshkosh.

Demand Indicators



Among the Wisconsin venues that shared information on their event demandwith HVS, the number of annual convention and conference events range from20 to 50 among the Wisconsin venues. They draw on a combination ofassociation, corporate, and SMERF business.

Participation of local business leaders in “bringing home” events related totheir businesses and associations has proven to be an effective marketing andsales technique in some locations.

Local event demand plays an important role in the utilization of most venues.

If the facility opens in 2017, HVS assumes that event demand and attendance willstabilize in 2019. The figure below shows a forecast of event demand in theProposed Conference Center, followed by a description of the different event types.

FIGURE 7-1 EVENT DEMAND FORECAST

2017 2018 2019 2020

Events

Conferences 18 23 25 25

Tradeshows 3 5 5 5

Consumer Shows 3 4 4 4

Assemblies 8 9 10 10

Meetings 75 90 100 100

Banquets 50 50 50 50

Total 157 181 194 194

Average Attendance

Conferences 250 250 250 250

Tradeshows 500 500 500 500Consumer Shows 1,500 1,500 1,500 1,500

Assemblies 1,000 1,000 1,000 1,000

Meetings 75 75 75 75

Banquets 300 300 300 300

Total Attendance

Conferences 4,500 5,750 6,250 6,250

Tradeshows 1,500 2,500 2,500 2,500

Consumer Shows 4,500 6,000 6,000 6,000

Assemblies 8,000 9,000 10,000 10,000

Meetings 5,625 6,750 7,500 7,500

Banquets 15,000 15,000 15,000 15,000

Total 39,125 45,000 47,250 47,250

*Includes graduations, dances, job fairs, and local trade shows.

Demand Projections



Conferences – Conferences require breakout meeting and banquet space but donot use exhibit space. Conferences could have a banquet component. Theytypically use a larger ballroom space for large general sessions, but break downinto smaller sessions over the course of a two or three day event. Based on surveyresponses, HVS assumes that conferences would have an average attendance of250 persons, but their size can range from 100 to 1,000 attendees. Civicorganizations, local corporations, state associations, religious groups, andgovernment agencies all host conferences.

Tradeshows – Tradeshows provide a means for wholesalers and retailers totransact business with industry buyers. As such, tradeshows typically function asexhibit-oriented events in which people display and demonstrate products.Tradeshows require some meeting and meal space; however, they require lessspace than a convention. Due to the lack of exhibition space in the programrecommendations, HVS projects a small number of tradeshows that could use thefull ballroom space. The source of tradeshow demand would primarily stem fromlocal corporate shows and enterprises.

Consumer Shows – Consumer shows are ticketed public events that attract localand regional attendees, such as home and garden shows and bridal expos. Due tothe lack of exhibition space in the Proposed Conference Center, HVS projects asmall number of consumer shows that could use the full ballroom space. Theseevents would also require breakout meeting rooms for support. Consumer showplanners would only require concessions for food and beverage services.

Assemblies – Assembly events include religious events, lectures, tests,graduations, small concert and entertainment events, and other civic ceremoniesthat require a large seating capacity.

Meetings – Depending on their size, meetings typically require the use of a singlemeeting room or a group of meeting rooms. They differ from conferences in thatthey only require the use of one type of space and do not involve extensivecatering. Unlike conferences, meetings are frequently one-day events. Meetingstypically have limited food service through coffee breaks, breakfasts, or luncheonsin meeting rooms. Although the size of these events can range from 10 to over1,000 persons, most meetings have fewer than 100 attendees and only usebreakout meeting space. The ballrooms could support larger meetings or severalsmaller simultaneous meetings as needed. Meetings would most likely have localarea participation by day-trip visitors and generate fewer overnight stays thanconferences.

Banquets – Banquets include stand-alone social events, weddings, luncheons, andother banquets typically booked by local corporations, social and civic



organizations, and private clients. The flexibility of the ballroom space in therecommended building program recommendations would allow for a variety ofbanquet sizes and multiple simultaneous events.

The figure below shows our assumptions about the length of stay and percentageof lodgers that are used to calculate estimates of room night stays by visitors whocome from outside Racine.

FIGURE 7-2 ROOM NIGHT GENERATION ASSUMPTIONS

Type of EventLength of

Stay

Percent

Lodgers

Conferences 2.5 70%

Tradeshows 2.5 70%

Consumer Shows 3.0 5%

Assemblies 1.0 5%

Meetings 1.0 20%

Banquets 1.0 10%

The figure below shows the estimated number of room nights new to the market.

FIGURE 7-3 ROOM NIGHTS INDUCED BY THE FACILITY

Type 2017 2018 2019 2020

Conferences 6,000 7,000 8,000 8,000

Tradeshows 2,000 3,000 3,000 3,000

Consumer Shows 0 1,000 1,000 1,000

Meetings 1,000 1,000 1,000 1,000

Banquets 1,000 1,000 1,000 1,000

Total 10,000 13,000 14,000 14,000

In a stabilized year of demand, the Proposed Conference Center would generate anestimated 14,000 new room nights. Currently, 1,300 hotel rooms in the Racinemarket generate approximately 257,000 occupied room nights per year, assuminga 53% occupancy rate from STR data. If the conference center generated 14,000room nights per year, occupancy in the market would increase by approximatelyfive percent.



The preceding event demand and room night estimates could change with anyadjustment to the assumptions and limited conditions described throughout thereport.

HVS uses a proprietary financial operating model to estimate revenues andexpenses at convention and conference centers. This model quantifies the keyvariables and operating ratios that determine revenue potential and expenselevels.

For the purposes of this study, HVS assumes that the City of Racine would own theProposed Conference Center. The City would contract with a third party venueoperator to manage the conference center spaces.

The conference center’s revenue line items include facility rental, food andbeverage sales, event services, and advertising. The model uses a series of revenueassumptions based on attendance that reflect the projected utilization levels offunction space.

To formulate the revenue assumptions, HVS relied on financial data fromcomparable venues, which reflect the typical revenues realized by comparablevenues. HVS also relied on other industry information and knowledge of theperformance of venues and adjusted the assumptions for inflation and otheranticipated trends in price levels.

The following figure summarizes the event revenue assumptions for the ProposedConference Center by type of event. A brief description of each revenue itemfollows.

FIGURE 7-4 REVENUE ASSUMPTIONS

Facility Rental Event Food & Adverstising

per per per perGSFD GSFD Attendee Fixed Amt

Conferences 0.06$ 0.03$ 25.00$ 50,000$

Tradeshows 0.06 0.03 15.00 -

Consumer Shows 0.06 0.03 2.00 -

Assemblies 0.15 0.08 1.00 -

Meetings 0.12 0.06 10.00 -

Type

GSFD = Gross Square Foot Day and is calculated by multiplying the floor area usedtimes the number of days of use.

Financial Analysis

Conference CenterRevenues



Facility Rental – Facility rental revenue includes the revenue the conferencecenter receives from clients that reserve one or more function areas in the facility.Despite having published rates, conference centers typically charge rental feesbased on negotiated daily rental fees. Facilities do not always charge this fee. Afacility could waive or reduce the space rental charges if the event meets a certainminimum of food and beverage charges, as most banquets do. For the purposes ofmodeling the rental revenue, HVS made calculations based on an assumption of arental rate per gross square foot day (“GSFD”), which is calculated by multiplyingthe floor area used times the number of days of use. For example, if an event used10,000 gross square feet for three days, then it would generate 30,000 GSFD.

Event Services – Event Services include the fees charged to tenants for servicesthat could include business services, audio and video technical assistance, set-upand take down of function spaces, cleaning services, security services, electricityand other utilities, commissions from decorators, and other services provided bythird-party contractors at events. Many events also require audio, video,communications and internet services. Banquets and other upscale events canoften require elaborate decorating services. Almost all events require cleaningservices. Service charges vary by type of event. Some of these services may beincluded in the rental charges for using the facility, but others will be add-onservice charges. The HVS model estimates event services revenue based on theGSFDs.

Food and Beverage – Most events that would use the venue’s function spacewould arrange for food service for their attendees during their events. This foodservice includes catering which can range from coffee breaks associated with ameeting to a full dinner associated with a conference or banquet. Concerts andother public events may generate concessions revenue. Most conferences generatedemand for multiple meals throughout multi-day events. Meetings and banquetsgenerally include a single meal or refreshment services. HVS projects estimatedgross food and beverage revenues on a per capita basis depending on the type ofevent.

Advertising – The facility could earn money through other methods such asadvertisements. HVS estimates other smaller sources such as advertising andsponsorships as a lump sum.

HVS estimated direct event and other expenses for the future operations of theProposed Conference Center as a blend of fixed costs and variable percentages ofoperating revenues. The fixed components increase in tandem with the underlyingrate of inflation, while the variable components adjust for a specific measure ofvolume such as total revenue. See the figure below.

Operating Expenses



FIGURE 7-5 EXPENSE ASSUMPTIONS

Expenditure Percentage RevenueFixed Expense for

Base Year

Operating Expense

Salaries 0.0% ## $0 $300,000

Benefits 25.0% of Salaries $0

Event Services Costs 85.0% of Event Services (Gross) $0

Food & Beverage Costs 65.0% of Food & Beverage (Gross) $0

Administrative & General 2.0% of Total Operating Rev $0

Repair & Maintenance 3.5% of Total Operating Rev $0

Supplies & Equipment 1.5% of Total Operating Rev $0

Utilities 5.0% of Total Operating Rev $0

Non-Operating Expense

Capital Maintenance 4.0% of Total Operating Rev $0

Management Fees 0.0% ## $0 $50,000

Insurance $0.45 of Attendance

Salaries & Benefits – HVS averaged the salaries and associated benefits forpermanent full and part-time employees dedicated to administration, marketing,building operations, and other functions for comparable venues. HVS adjustedthese numbers for inflation and with industry knowledge. This category does notinclude part time food & beverage and event staffing because departmental costsinclude them. We assumed benefits to be 25 percent of gross salaries.

Event Services Costs – Event services costs include the costs incurred by thefacility for client reimbursed expenses such as audio visual set-up, security,cleaning, event set-up and event labor. HVS estimated event service costs as apercentage of gross event service revenues. To determine the appropriate variableevent service percentage, HVS used industry standards for quality event services.

Food and Beverage Costs – HVS assumes that an in-house food service operatorwould operate the food and beverage operation. Costs of food service include theraw costs of food and beverages sold as well as the labor associated with foodpreparation and service. HVS estimated food and beverage costs as a percentage ofgross food and beverage sales.

Administrative & General – Office and administrative operations incur day-to-day facility expenses. Such expenses typically include travel, telephone, printing,permits, and other miscellaneous services.



Marketing and Sales – For the purposes of this analysis, we assume thatRealRacine would hold responsibility for the long-term marketing and sales ofconferences that generate room nights. The conference center manager wouldhandle sales of short-term bookings and local events. We assume a base yearmarketing and sales budget of $120,000 for the production of marketing materials,website development and maintenance, travel, entertainment, and othermarketing and sales related expenses.

Repair & Maintenance – This category includes both routine and one-time facilitymaintenance expenses that in-house facility operations personnel handle. It alsoincludes more specialized activities, such as HVAC system maintenance, electricalwork, and maintenance of other mechanical systems often contracted out to thirdparties.

Supplies & Equipment – This category includes items such as computers, officemachines, furniture, consumables, and chemicals that help to maintain theoperations of the facility.

Utilities – Utilities, including electricity, gas, water, and other charges oftenrepresent one of the largest expenses incurred by facility operators.

Capital Maintenance Reserve – Venue management would use an annualcontribution based upon four percent of total facility operating revenues to fundmajor capital improvements as the facility ages. This capital reserve can ensurethat the Proposed Conference Center would continue to attract event planners.

Management Fees – A third party management firm would receive fees for thesuccessful marketing, operation, and maintenance of the conference center.

Insurance – This item represents the cost of providing building insurance for thefacility.

Since estimated expenses exceed operating revenues, as in most stand-aloneconference facilities, we anticipate that the conference center would need anadditional source of revenue to support its ongoing operations. While we have notidentified the source of revenue, we assume the City of Racine would need totransfer funds to the conference center to balance its budget. Typically,municipalities use lodging taxes or other forms of tourism taxes as sources ofongoing operating support for convention and conference centers.

In consideration of the most recent trends and the projections set forth previously,we applied an underlying inflation rate of 2.5 percent for all years. This stabilized

Non-OperatingExpenses

Non-Operating Income

Inflation Assumption



inflation rate takes into account normal, recurring inflation cycles. Inflation willlikely fluctuate above and below this level during the projection period.

The figure below presents the five-year financial projections for the ProposedConference Center. HVS made projections in inflated dollars beginning January 1,2017, which reflects the opening of the Proposed Conference Center andimplementation of strategic recommendations. HVS projects that demand willstabilize in 2019.

FIGURE 7-6 DETAILED FORECAST OF INCOME AND EXPENSE

2017 2018 2019 2020 2021

OPERATING REVENUEFacility Rental $132,000 $176,000 $193,000 $198,000 $203,000Event Services (Gross) 66,000 88,000 96,000 99,000 101,000Food & Beverage (Gross) 727,000 814,000 859,000 881,000 903,000Advertising & Sponsorships 55,000 57,000 58,000 59,000 61,000

Total $980,000 $1,135,000 $1,206,000 $1,237,000 $1,268,000

OPERATING EXPENSESSalaries $331,000 $339,000 $348,000 $357,000 $366,000Benefits 83,000 85,000 87,000 89,000 91,000Event Services Costs 56,000 75,000 82,000 84,000 86,000Food & Beverage Costs 472,000 529,000 558,000 572,000 587,000Administrative & General 20,000 23,000 24,000 25,000 25,000Marketing & Sales 132,000 136,000 139,000 143,000 146,000Repair & Maintenance 34,000 40,000 42,000 43,000 44,000Supplies & Equipment 15,000 17,000 18,000 19,000 19,000Utilities 49,000 57,000 60,000 62,000 63,000

Total $1,192,000 $1,301,000 $1,358,000 $1,394,000 $1,427,000

OPERATING INCOME (LOSS) ($212,000) ($166,000) ($152,000) ($157,000) ($159,000)

NON-OPERATING REVENUEFund Transfers In $304,000 $283,000 $284,000 $291,000 $299,000

Total $304,000 $283,000 $284,000 $291,000 $299,000

NON-OPERATING EXPENSESCapital Maintenance $20,000 $34,000 $48,000 $49,000 $51,000Management Fees 55,000 57,000 58,000 59,000 61,000Insurance 19,000 23,000 25,000 25,000 26,000

Total $94,000 $114,000 $131,000 $133,000 $138,000

TOTAL NET INCOME (LOSS) ($2,000) $3,000 $1,000 $1,000 $2,000

HVS financial projections show the expected levels of revenues and expenses overa five-year period. Projections show smooth growth over time, but event demandand booking cycles do not always move smoothly. Unpredictable local and national

Conference CenterOperating Pro Forma



economic factors can affect demand. Event demand often runs in cycles based onrotation patterns and market conditions. Therefore, HVS recommends interpretingthe financial projections as a mid-point of a range of possible outcomes and over amulti-year period rather than relying on projections for any one specific year.


DRAFT December 4, 2013 Statement of Assumptions and Limiting ConditionsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 8-1

8. Statement of Assumptions and Limiting Conditions

1. This report is to be used in whole and not in part.

2. No responsibility is assumed for matters of a legal nature.

3. We have not considered the presence of potentially hazardous materials on theproposed site, such as asbestos, urea formaldehyde foam insulation, PCBs, any formof toxic waste, polychlorinated biphenyls, pesticides, or lead-based paints.

4. All information, financial operating statements, estimates, and opinions obtainedfrom parties not employed by HVS are assumed to be true and correct. We canassume no liability resulting from misinformation.

5. Unless noted, we assume that there are no encroachments, zoning violations, orbuilding violations encumbering the subject property.

6. We are not required to give testimony or attendance in court by reason of thisanalysis without previous arrangements, and only when our standard per-diem feesand travel costs are paid prior to the appearance.

7. If the reader is making a fiduciary or individual investment decision and has anyquestions concerning the material presented in this report, it is recommended thatthe reader contact us.

8. We take no responsibility for any events or circumstances that take place subsequentto the date of our report.

9. The quality of a conference center's on-site management has a direct effect on afacility's economic performance. The demand and financial forecasts presented in thisanalysis assume responsible ownership and competent management. Any departurefrom this assumption may have a significant impact on the projected operatingresults.

10. We do not warrant that our estimates will be attained, but they have been developedon the basis of information obtained during the course of our market research andare intended to reflect reasonable expectations.

11. Many of the figures presented in this report were generated using sophisticatedcomputer models that make calculations based on numbers carried out to three ormore decimal places. In the interest of simplicity, most numbers have been rounded.Thus, these figures may be subject to small rounding errors.


DRAFT December 4, 2013 Statement of Assumptions and Limiting ConditionsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 8-2

12. It is agreed that our liability to the client is limited to the amount of the fee paid asliquidated damages. Our responsibility is limited to the client, and use of this reportby third parties shall be solely at the risk of the client and/or third parties. The use ofthis report is also subject to the terms and conditions set forth in our engagementletter with the client.

13. Although this analysis employs various mathematical calculations, the final estimatesare subjective and may be influenced by our experience and other factors notspecifically set forth in this report.

14. This report was prepared by HVS Convention, Sports & Entertainment FacilitiesConsulting. All opinions, recommendations, and conclusions expressed during thecourse of this assignment are rendered by the staff of this organization, as employees,rather than as individuals.

15. This report is set forth as a market and feasibility study of the subject facility; this isnot an appraisal report.


DRAFT December 4, 2013 CertificationMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 9-1

9. Certification

The undersigned hereby certify that, to the best of our knowledge and belief:

1. that the statements of fact presented in this report are true and correct tothe best of our knowledge and belief;

2. that the reported analyses, opinions, and conclusions are limited only bythe reported assumptions and limiting conditions, and are our personal,impartial, and unbiased professional analyses, opinions, and conclusions;

3. that we have no (or the specified) present or prospective interest in theproperty that is the subject of this report and no (or the specified) personalinterest with respect to the parties involved;

4. that we have no bias with respect to the property that is the subject of thisreport or to the parties involved with this assignment;

5. that our engagement in this assignment was not contingent upondeveloping or reporting predetermined results;

6. that this report sets forth all of the limiting conditions (imposed by theterms of this assignment) affecting the analyses, opinions, and conclusionspresented herein;

7. that the fee paid for the preparation of this report is not contingent uponour conclusions, or the occurrence of a subsequent event directly related tothe intended use of this report;

8. that Thomas Hazinksi and Alex Moon personally inspected the propertydescribed in this report;

9. that no one other than those listed above and the undersigned preparedthe analyses, conclusions, and opinions concerning the real estate that areset forth in this market study; and

10. that our analyses, opinions, and conclusions were developed, and thisreport has been prepared, in conformity with the Uniform Standards ofProfessional Appraisal Practice.


DRAFT December 4, 2013 CertificationMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin 9-2

draft

Thomas HazinskiManaging Director

draftAlex MoonAnalyst


DRAFT December 4, 2013 Appendix A - Competitive Venue DescriptionsMarket and Feasibility Analysis Proposed Conference Center – Racine, Wisconsin A-1

Appendix A - Competitive Venue Descriptions

The following descriptions provide information on ownership, management, andoperations of potential competitors in the State of Wisconsin.

The Monona Terrace Community and Convention Center (“MTCCC”) in Madison,Wisconsin overlooks Lake Monona. Renowned architect Frank Lloyd Wrightconceived of the MTCCC in 1938, but construction completed in 1997. The City ofMadison and State of Wisconsin jointly own the MTCCC. The City of Madisonhandles day-to-day operations. Developers estimated the total cost of the facility at$67 million. The MTCCC features 37,200 square feet of exhibition space divisibleinto two halls, a 13,500 square-foot ballroom that can divide into four sections,17,600 square feet of meeting space over 14 rooms, and a 315-seat lecture hall. Ithas a rooftop garden with 45,000 square feet of outdoor function space for events.The facility attaches via skywalk to the 240 room Hilton Madison Monona Centerand 600 parking spaces. Marcus Corp, the hotel developer and operator, financedthe construction of the $29 million hotel.

MONONA TERRACE COMMUNITY AND CONVENTION CENTER

State Competitors

Monona TerraceCommunity andConvention Center



MONONA TERRACE COMMUNITY AND CONVENTION CENTERFLOOR PLANS – LEVEL 1

The La Crosse Center (“LCC”) opened in 1980 in downtown La Crosse, Wisconsin.In the spring of 2000, a $14 million expansion nearly doubled its size to offer68,012 square feet of total function space. It features five exhibit halls, a 6,700square-foot ballroom, and 22 meeting rooms. The LCC also has a 21,000 square-foot arena. The exhibit halls sit on opposite ends of the arena.

La Crosse Center



LA CROSSE CENTER

LA CROSSE CENTER FLOOR PLANS



Kalahari Resorts opened in 2000 in Wisconsin Dells. The resort features 756 guestrooms, four restaurants, and the largest indoor water park in the State ofWisconsin at approximately 125,000 square feet. For event planners, KalahariResorts includes 37,760 square feet in two ballrooms, and each ballroom can splitinto eight divisions. The resort has 23,582 square feet of meeting space across 19rooms, for a total of 61,342 square feet of total function space.

KALAHARI RESORTS

Kalahari Resorts



KALAHARI RESORTS FLOOR PLANS



The KI Convention Center in downtown Green Bay, WI contains 17,640 square feetof exhibit space, a 17,797 square foot ballroom divisible into seven sections, and6,364 square feet of meeting space across nine rooms. Management of the attached241-room Hyatt hotel operates the venue. The center has skywalk access to 1,100covered parking spaces. The Green Bay Redevelopment Authority started a $24million dollar renovation project of the KI Convention Center to add approximately30,000 square feet of total function space by June of 2015. The expansion includesa new banquet hall that overlooks the Fox River and connection to the ClarionHotel.

KI CONVENTION CENTER

KI Convention Center



KI CONVENTION CENTER FLOOR PLANS PRE-EXPANSION



The Radisson Paper Valley Hotel in Appleton, WI has 390 rooms. The hotel alsofeatures a 13,730 square foot ballroom with four divisions and 20 meeting roomsof varying sizes that total 18,954 square feet. The Radisson Paper Valley also ownsa courtyard for outdoor weddings and ceremonies.

RADISSON PAPER VALLEY

Radisson Paper Valley



RADISSON PAPER VALLEY FLOOR PLANS – MAIN FLOOR



RADISSON PAPER VALLEY FLOOR PLANS – LOWER LEVEL

The Holiday Inn Stevens Point features 16,020 square feet of exhibit space withfive divisions, an 8,400 square foot ballroom, and four meeting rooms totaling1,403 square feet. The hotel owns 149 rooms and manages an indoor water park,restaurant, and patio bar.

Holiday Inn StevensPoint



HOLIDAY INN STEVENS POINT

The Westwood Conference Center (“WCC”) in Westwood, Wisconsin features a7,347 square feet ballroom with four divisions and 16,448 square feet of meetingspace across 14 rooms. WCC has no adjacent hotel rooms, but the 84-roomCourtyard Wausau and 87-room Fairfield Inn & Suites Wausau provide shuttleservices to the venue.

WESTWOOD CONFERENCE CENTER

Westwood ConferenceCenter



WESTWOOD CONFERENCE CENTER FLOOR PLANS

Originally, Nashco Hospitality Group owned the Oshkosh Convention Center inOshkosh, Wisconsin. But in 2009, The University of Wisconsin OshkoshFoundation, RB Hospitality, and Pfefferle Companies, Inc. purchased the propertyfrom Nashco and launched a $12 million dollar renovation project that completedearlier this year. Today, the venue features a 176-room hotel, 15,400 square feet ofballroom space with eight divisions, and 3,110 square feet of meeting space spreadout across four rooms.

Oshkosh ConventionCenter



OSHKOSH CONVENTION CENTER



OSHKOSH CONVENTION CENTER FLOOR PLANS



The Holiday Inn Express and Janesville Conference Center in Janesville features142 hotel rooms and a 13,000 square foot ballroom that can divide into 10,000square feet and two 1,500 square foot smaller rooms. The venue has three meetingrooms that total 1,249 square feet. In August, hotel management commenced arenovation project expected to complete in the summer of 2014. The project doesnot include any plans for expansion.

THE HOLIDAY INN EXPRESS AND JANESVILLE CONFERENCE CENTER

The Blue Harbor Resort and Conference Center in Sheboygan opened in 2004.Great Wolf Resorts built and initially managed the property. In 2011, they sold it toClaremont New Frontier Resort for $4.2 million dollars. The new owners thenremodeled the 182-room resort. The site features a 38,000 square foot indoorwater park, a 9,882 square foot ballroom with up to seven divisions, a 700 squarefoot meeting room, and a 312 square foot meeting room.

The Holiday InnExpress and JanesvilleConference Center

The Blue Harbor Resortand Conference Center



THE BLUE HARBOR RESORT AND CONFERENCE CENTER

THE BLUE HARBOR RESORT AND CONFERENCE CENTER FLOOR PLANS



The Best Western Harborside Inn & Kenosha Conference Center features a 9,359square foot ballroom that splits into a maximum of six divisions. It also has threemeeting rooms, totaling 730 square feet. The property offers a view of SimmonsIsland and Lake Michigan on the eastern edge of Kenosha. The building features111 attached hotel rooms and 180 outdoor parking spaces.

THE BEST WESTERN HARBORSIDE INN & KENOSHA CONFERENCE CENTER

The Best WesternHarborside Inn &Kenosha ConferenceCenter

Documents

DRAFT MARKET AND FEASIBILITY ANALYSIS Proposed …