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Published - Sunday, October 28, 2007

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La Crosse Center upgrades have paid off with more events, consistent profits


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At midday Thursday, 1,000 convention-goers left the La Crosse Center and fanned out downtown in search of lunch.

During their three-day stay in the city, members of the Wisconsin Wastewater Operator’s Association were expected to spend $270 to $450 apiece at local hotels, shops and restaurants. It’s among the 34 conventions and 270 events the La Crosse Center will host this year.
In 2000, the La Crosse Common Council gambled that a $14 million expansion would help the financially struggling facility at least break even. “We did go out on a financial limb,” said then-Mayor John Medinger, “but it is an investment in our future.”

One that appears to have paid off.

Bookings in the renovated center, which almost doubled in size, jumped from 26 in 2000 to 34 in 2001. Center operations pulled into the black after two consecutive years of needing city money to stay afloat.

While the number of conventions at the Second Street facility has hovered in the mid-30s since, the center has continued to be self-sufficient and even built a safety net, said Center Director Art Fahey.

Last year, it posted a profit of more than $165,000.

The center still owes the city about $105,000 from the red-ink years and pays back $8,500 annually.

Part of the turnaround from the red-ink years was finding new sources of revenue, such as making electrical hook-ups for booths a separate charge, Fahey said.

The center also receives 2 percent of La Crosse’s 7 percent hotel room tax.

Before the expansion, the center lost business because it didn’t have the space to host multiple events, Fahey said. The renovation created two exhibit halls, a ballroom, board rooms, a pre-function area and food preparation space.

At the time, demand for convention space in the state was exceeding what was available.

That’s no longer the case, said Dave Clements, director of the La Crosse Area Convention and Visitors Bureau.

Conventions at the center peaked at 37 in 2004, and have leveled off. Events hit a high of 320 in 2001 and tapered to as few as 266 in 2006, though they are up to 270 this year.

The center competes with facilities in Milwaukee, Madison, Green Bay, Oshkosh, Lake Geneva, Janesville and Stevens Point.

But the Wisconsin Dells — in particular, the monstrous Kalahari resort and convention center off Interstate 90 — stands as the main rival.

The Kalahari, built in 2000, boasts a hotel, restaurant, retail shops, water park — you need never leave the building, Fahey said.

“When I was a kid, the Dells was a summer resort,” Clements said. “Now, it’s successfully become a year-round destination.”

The Dells’ convention and visitors bureau also has a much bigger budget: $9.5 million versus La Crosse’s $645,000.

Communities such as the Dells and Stevens Point have the added advantage of being close to the center of the state.

Since they can’t match the added attractions of the Dells or the easier-to-reach location of a Stevens Point, Fahey and Clements tout La Crosse’s setting.

“We don’t pretend to be a Dells-type resort,” Fahey said. “When you sell the La Crosse Center, you’re marketing the city and all the things that go along with it.”

“Once we get them here, they love it,” Clements said. “But it’s a matter of convincing them to drive here.”

The downtown, the riverfront, the bluffs, the La Crosse Queen — all are ways to lure conventions in, Clements said.

“They can’t compete with our scenic beauty,” he added. “The bluffs and the river cannot be duplicated.”

The center already has a solid footing among state associations that rotate where annual meetings or conventions are held. In the past few months alone, the center has confirmed Wisconsin Healthcare Engineering Association, the Association of County Officials and the Governor’s Conference on Emergency Management, Clements said.

“We have a pretty good grasp on who is planning meetings in Wisconsin,” Fahey added.

Continued success, however, will hinge on reaching out to new markets. That’s why Clements and Fahey make quarterly trips to Chicago and Minneapolis.

“It’s a slow process, but it’s starting to work,” Clements said.

With more choices, organizations are waiting longer to book, so the marketing efforts can take awhile to show results.

Most conventions now book two to three years in advance, while three to five years used to be the norm, Clements said.

“It’s not like turning on a light switch,” he said.

And despite the work done in 2000, some rooms, such as the Zielke Suite and North Hall, both in place before the addition, already are showing their age, Fahey and Clements both said.

“There’s going to come a day when we’ll talk about expansion again,” Fahey said, though he doesn’t expect that will be anytime soon. The 2000 expansion, he noted, took more than six years to approve.

The facility also needs to be constantly improving in order to keep up, Clements said.

The center now provides wireless Internet connections by moving antennas throughout the building, but a more permanent solution will be needed, Fahey said.

And, of course, more parking wouldn’t hurt, he said.

“Either you improve or you get left behind,” Clements said. “Because there’s always somebody out there who has got bigger, better, newer, nicer.”

Samantha Marcus can be reached at (608) 791-8220 or smarcus@lacrossetribune.com.
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r&r wrote on Oct 28, 2007 9:57 PM:

" I can't even count the # of times my out of town friends have asked me why LAX doesn't have any good rock concerts like they used to. I thought they were supposed to cater to the public's wants and needs, not just the "suits" with money. "

North Sider wrote on Oct 28, 2007 3:40 PM:

" I loved watching the Northstars from the owners box. What is your point? "

turkpbr wrote on Oct 28, 2007 3:16 PM:

" I love my view of all these events, concerts and sports from my corporate luxury box suite in the La Crosse Center club level. "

North Sider wrote on Oct 28, 2007 2:22 PM:

" TO: Goofus- Love your posts. "smear this red herring across the path", great! Who would know what the Employment reports concerning 'living wage'were in Phase I, or II. There was no information, at all? I could have written the report on a napkin the day before. They have counted the votes already. Watch what committees Richmond's new resolution will be routed through. Elected officials to vote will be harder to find than a fresh Red Herring. "

Goofus wrote on Oct 28, 2007 2:14 PM:

" Don't let your eyes get distracted from the ball here. I feel an amendment coming soon for the new taxpayer funded banquet hall. The argument will be that the center is in great shape, so the new banquet hall won't be competition. They are trying to smear this red herring across the path, but the real issue is why LaCrosse pols. are taking money from those who make $12-13 an hour (the people who actually live in the city, not those who work there and commute to suburbs) and giving it to a private business with a new $750 million contract. "

K.M. wrote on Oct 28, 2007 10:25 AM:

" At the risk of dating myself, I remember when the old Mary E. Sawyer had rock concerts all the time. REO, Kiss, America, etc. and they weren't the old washed up version but the real deal. I have no idea why there aren't decent concerts at the LaCrosse Center. Maybe the new LHI building can hold concerts in their new "banquet hall":) "

North Sider wrote on Oct 28, 2007 8:48 AM:

" My how the story changes? "The renovation created two exhibit halls, a ballroom, board rooms, a pre-function area and food preparation space", Well you could say that is the second ballroom we have paid for with our tax dollars if you count Riverside Center's 'emergency' needed Lunch/Meeting Room. "two consecutive years of needing city money to stay afloat", Well Thank Goodness the Basketball owner with the 4 day deadline 'emergency' went away. After I pulled the number and we had 8 money losing seasons with previous basketball. Eight seasons, not three Art. All in all, good! Manage the money as if it were yours. "

random annoying bozo wrote on Oct 28, 2007 8:29 AM:

" aren't numbers greast? you can twist ant turn them around to mean whatever you want. for example, the Center is "in the black" by 165k, but would they still be "in the black" if some of their 'revenue' didn't come from a tax? the expansion cost 14 mil in 2000. so if the Center is "in the black", should i assume that cost has been recouped? if not, how is it being payed back. i really don't think the Center is really "in the black", it's more like some creative number play from government. "

CJ wrote on Oct 28, 2007 8:19 AM:

" It would be nice to see good rock or country bands here like the 80's/90's had unlike having to travel to Mpls/St Paul area for an event. "

r&r wrote on Oct 28, 2007 7:15 AM:

" Sorry, Big Spender....I feel your pain (i.e. money drain on the wallet). I doubt any of that is going to get better. It would probably be a good bet that (with whatever little money that you and I have left after paying all those expenses that you list) it's going to get worse. Inflation, war, supporting people that can't or won't support themselves, health care; it's not going to get better so start gambling. In the meantime, it would be nice to be able to enjoy a decent rock concert at the LAX Center more than once a year. It sucks that I have to travel to other cities to enjoy a good rock concert because the area that I live in only has conventions that I don't attend. "

Big Spender wrote on Oct 28, 2007 12:56 AM:

" Now that "La Crosse Center upgrades have paid off with more events, consistent profits," property taxes, gas prices, food costs, state taxes, heating bills, electricity charges, transportation costs, federal taxes, sales taxes, clothing expenses, water and sewer outflows, insurance premiums, and car payments will start going down for us hoi polloi, right? (Not that that matters to anyone in power.) "


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