Madison Mayor Dave Cieslewicz continues to negotiate plans for a new hotel to serve Monona Terrace and the downtown Madison area.
City officials are engaged in negotiations with Marcus Corp., a company based in Milwaukee. The project would restore the Madison Municipal building and create a large parking structure adjacent to the Monona Terrace.
Monona Terrace Director Jim Hess said a new hotel could be a significant boost and economic impact to the entire community."" The convention center saw an increase in revenue when the Hilton was built, but has leveled off, according to Hess.
""We've reached a glass ceiling,"" Hess said. ""We know we can do more business, but we don't have room.""
The city chartered a downtown hotel feasibility study to assess whether or not Madison needed additional hotel space to better facilitate Monona Terrace's convention center. The study provided specific suggestions that could help Monona Terrace ""continue to capture business and go forward,"" said Mayor Dave Cieslewicz's Aide Mario Mendoza.
Mendoza said the potential hotel could be significant competition to other areas in the state with convention center amenities. Although Monona Terrace's business remains stable, greater hotel space may lead to ""lucrative business"" from conventions, according to Mendoza. Conventions are often deterred by downtown Madison's lacking room capacity, and business is taken elsewhere.
The study, executed by Hunden Strategic partners, recommended a 400-room, full-service hotel to increase business for the center. Mendoza said the report suggests a ""respected brand name hotel with a high level of personal service."" Other recommendations include functional space for meetings and conferences and a ballroom for large events.
Mendoza noted that this kind of facility could also house Monona Terrace events in conference low seasons. Another consultant, commissioned by Monona Terrace, projected business could increase as much as 50 percent in two to three years, given a larger hotel space.
Marcus Corp. also owns the Hilton Madison Monona Terrace, and a previous contract gives the company the right of first refusal. That is, in the event that the city wants to use the property, Marcus Corp may deny this action.
The contract also involves a noncompete agreement. Madison may not negotiate with other developers within a certain area of the Hilton. Mendoza says the city is happy to negotiate with Marcus Corp.
Mayor's Aide Rachel Strauch Nelson said the project is still ""very early in the process, and we don't know that any deal will come of it.""
