COMMITTEE OF THE WHOLE - MINUTES - 2/7/2002
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO (Approved)
MINUTES OF MEETING HELD FEBRUARY 7, 2002
Mayor De Angelis called the meeting to order at 7:07 PM. Also present were Aldermen
Slocomb, Le Doux, Patterson, Petfalski, Salentine, Sanders and Wichgers, Parks and
Recreation Director Craig Anderson, Finance Director Dawn Gunderson, Recreation
Supervisors Irene Schuder and Tammy Dunn, and members of the Community
Center/Recreation Facility Study Group and the Theatre/Banquet Rooms/Meeting
Rooms Study Group.
The Pledge of Allegiance was recited by all in attendance. The Clerk-Treasurer noted
the meeting was noticed in accordance with the Open Meeting Law. Ald. Slocomb
moved to approve minutes of the 1/10/2002 meeting. Ald. Salentine seconded; motion
carried.
Presentations of Community Center/Recreation Facility Study Group and Theatre/
Banquet Rooms/Meeting Rooms Study Group Proposals
Craig Anderson thanked the committee members, Sports Management and Partners in
Design for their work on this project. Lauren Livingston of The Sports Management
Group made a power point presentation identifying the key objectives and personal,
social and economic benefits of this type of facility. The proposed activity, fitness,
exercise and community type spaces were reviewed. The aquatics area and special
event party rooms were explained.
A financial analysis of the proposed 117,360 sq. ft. building was presented using a
conservative approach. Communities close to the site looking to Muskego for services
and those currently enrolled in recreation programs were used. 2006 projected
demographics were presented. Some assumptions were made on fees based on the
market and a proposed fee range less than the comparables presented. Also looked at
operating costs. This is a heavy use building with a high cost of operation for staffing,
maintenance, supplies, utilities and insurance, plus annual debt service of about $3.1 -
$3.4 million. Revenue potential was estimated to be between $3.3-$3.5 million. The
cost recovery potential was estimated at 106.3% or about $206,000 revenue surplus.
Muskego Police Officer Gary Mrotek spoke as the City’s liaison officer and crime
prevention officer, stating he sees very positive benefits. He noted the RexPlex has a
police office in the facility which provides a greater sense of security. It’s also an area
with a great sense of community. Tom O’Connell of Partners in Design, made a power
point presentation on the site and design, noting the location is southwest of Janesville
Rd. and Moorland Rd. extended. Two components were identified, the
theatre/conference component and the recreation component. Structures will follow the
downtown design guide and the parking wraps around the back as seen from Moorland
Road. It was noted that ice skating is not proposed at this site.
Mr. Anderson said participation was proposed at 52% Muskego, 17% Franklin, 20%
New Berlin and 11% other (Hales Corners, Wind Lake, Big Bend, Mukwonago). The
majority of the fees will come from annual passes. Recreation programs will be self-
supporting. He noted he is not asking for any subsidies for the rec programs from the
City with this facility. Mr. Anderson said the facility will not handle 100% of the rec
program needs and the schools will continue to be used for various programs.
Committee of the Whole Page 2
Minutes of Meeting Held 2/7/02
Potential participation was reviewed as shown on page 36 of the study. In response to
a question from Ald. Wichgers, Lauren noted the projection show 25% of the families in
Muskego as pass holders. He questioned more than 50% of the users coming from
outside the City. Ald. Wichgers also thought the original project several years ago was
intended to be a cultural center rather than a recreation facility.
Ald. Wichgers stated he liked the dressed-up look of the big box structure and asked
what the estimated cost is to make that upgrade to the box. He also asked for a study
done on increased crime due to 50% of the users coming from outside the community
with cars and traffic unknown to the residents. Discussion followed and no known study
was available. Comments were mentioned that it has been shown that this type of
facility decreases crime in the community due to activities provided to keep young
people busy.
Mayor noted that Mr. Fred Washa’s original vision included both recreation and theatre.
Mayor stated those outside the City will pay more and will help subsidize our project and
thought 50/50 was a good mix.
Mr. Anderson presented the letter issued by Ehlers & Associates analyzing the
preliminary plan for financing the project.
After a short break, Ald. Salentine, as chairman of the Theatre/Banquet Rooms/Meeting
Rooms Study Group, introduced the committee members and representatives from
ERA, Engberg Anderson Design Partnership, Inc. She noted this was a two-fold project
– the recreation facility which would be a City-run project and the theatre/banquet facility
which would be run by a 501(3)(c) corporation. The corporation has been formed and
officers are in place. Funds can now be solicited as we have a footprint on the property.
Mr. Mark Ernst, Engberg Anderson, reported there isn’t really a prototype for this type of
combined facility of theatre and meeting space, and presents a very different road than
the rec center. Most arts projects are funded with private dollars. The combination of a
banquet facility and an arts center is a good one. Hartford has done something similar
with their rec center and theatre near each other.
Mr. Dick Starr presented financial aspects of the project. He looked at performing arts
centers, arts centers and banquet facilities to see what would work in this community.
The City is missing some corporate people for sponsorships and naming rights. That
usually can pump-start a project. There is not much comparison here but there is some
coming. With the downturn in the economy we aren’t seeing as much sponsorship and
we’re trying to find new ways of financing. Each community is so different it’s hard to
find case studies. The ideal answer for a community this size is a mix of theatre,
meeting and banquet facilities which is difficult to design but is able to be done. We’d
like some linkage to the recreation department and school system. This is a quality of
life feature and we’re looking at a goal of covering the costs, not to pay off the debt.
We’re looking for support and partnerships. In the next few years the City of Muskego
is going to attract some high quality restaurants. We’re looking at a restaurant, event
area, capacity to put on performances and dinner-theatre capability. This will help
attract upscale residential development. It’s not easy but there is opportunity here.
Committee of the Whole Page 3
Minutes of Meeting Held 2/7/02
Since the referendum recently passed for the school district includes an 800 seat
auditorium, this facility has been changed to be flexible, being able to handle 300-400
with movable seats, another room as a banquet hall for 400-500 people for business
meetings, banquets, weddings and many more activities. Support spaces include
dressing rooms, a catering kitchen (depending if a restaurant is attached or nearby),
four meeting rooms to support the arts – such as rehearsals, flexible use rooms. The
first level would house the theatre and banquet rooms, and the second level, the four
meeting rooms overlooking the two-story lobby space. There is a site immediately to
the north which could be a location of a restaurant. There is no expansion space on this
site for this facility, contrary to the rec plex which does allow for some future expansion.
The construction of this 53,000 sq. ft. structure is estimated at $9.5-$12.5 million for the
project. It may be worth debating the prairie style buildings and he stated he actually
preferred the agrarian or barn style. The next steps are: Board development;
fundraising; establishment of goals; establish capital campaign committee; anchor
tenants (arts, community groups, businesses); refine program and design. Example, If
groups are going to use this as their home facility, they may need office space.
Ald. Patterson asked why a banquet facility because most are privately run. Mayor
responded the arts don’t pay for themselves and the banquet and meeting rooms afford
the opportunity to make this a self-supporting facility and allows the arts facility to be
viable. He noted this is a non-profit corporation which is trying to be put together to fund
raise for the building. Enough money to pay off debt could be generated. These
facilities are not intended to be a drain on our tax resources. That’s why a 501 (3)(c)
corporation was formed. It’s a quality of life facility that enriches everyone’s life and
gives our own community their own facility.
Ald. Patterson said if this is to be built so it can be successful, he expressed concern
about the lack of expansion space. If it’s going to be too small to grow to be successful,
then why start it in this area. Mr. Starr said as the group explored the physical design of
the site, both design teams came to the conclusion it was a tight site. We think that if a
restaurant on the site to the north is part of the equation, then you could build the facility
to expand and to grow and to be successful. It’s our suggestion that you explore that
site to the north to make this work. Ald. Petfalski felt it’s not only a quality of life issue,
but would also attract a quality restaurant and add to our business tax base which helps
everyone.
Mayor advised this project is not anticipated to follow the same timeline as the rec
center. We have to get the fund raising off the ground and define our final space needs
and how to serve the different groups in this community. Since the City is not paying for
this facility, there is not a major roll for the Common Council at this point other than to
give input as the committee goes forward. He recommended the Council continue to
supply a member to the committee.
Fred Washa reported the board has been set up. About $8,000 in the fund now.
Looking for twelve (12) directors to serve on the board. Looking for guidance and
assurance we have a place to build it in order to proceed with fund raising, apply for
grants, etc.
Committee of the Whole Page 4
Minutes of Meeting Held 2/7/02
Discuss Governor’s proposal relating to State Shared Revenues
This matter will be discussed at the Tuesday Council meeting. The Mayor stated he
has placed a freeze on hiring new positions and filling of vacant positions. About
$170,000 could be saved up front, with a whole host of things we can talk about as
potential cuts in service for this year as well as some potential one-time shifts for the
transition. Ald. Slocomb noted when you talk about not hiring in engineering, and when
you look at the net impact in the City you need to look that they brought in a sizeable
amount of revenue, although not enough to cover themselves. Those same services
are needed whether they are performed in house or purchased outside. Mayor
acknowledged the discussion is needed on that and other issues as well.
Adjournment
Ald. Le Doux moved to adjourn at 10:25 PM. Ald. Salentine seconded; motion carried.
Respectfully submitted,
Jean K. Marenda
Clerk-Treasurer
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