Sunday, July 15, 2007


Jul. 15, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
When Christopher Berge left the official dedication of Monona Terrace in July 1997, he stopped in front of 120 W. Wilson St., a nearby building where he knew space was available.

About six months later, he opened Restaurant Magnus there.

'(Monona Terrace) actually became that kick in the pants that got things going around it,' Berge said. 'I think the most positive aspect for the local business community was that it was a confidence-builder for the (Capitol) Square.'

Ten years old this month, Monona Terrace -- as well as other major developments on campus and the Isthmus -- has been credited as a spark that helped ignite a Downtown revival over the past decade, including condominiums, restaurants, stores and office buildings, as well as Overture Center.

Contentious past

The July 1997 dedication ceremony at Monona Terrace was the culmination of nearly six decades of fierce public debate over the need for a convention center in Madison.

Architect Frank Lloyd Wright unveiled his proposal for a 'dream civic center' in 1938 on Lake Monona, which would have combined city and county offices, an auditorium and a boat facility. The often controversial plan ebbed and flowed for decades before construction finally began in December 1994.

In the last decade, the center's financial performance has been steady -- annual revenue at the center has risen gradually to $4 million -- although the center still loses money every year. The losses are covered by a city subsidy -- estimated to be about $2.9 million this year -- that comes from room tax revenue collected from hotel guests.

Before it opened, city officials estimated Monona Terrace's operating losses would be $1 million to $2 million a year. In exchange, the facility would bring visitors to the city and spur the economy, backers said. And according to an update to a study done for Monona Terrace a year ago by Virchow Krause & Co., the center generated $32.6 million last year in direct and indirect economic benefits.

Located on the shore of Lake Monona along John Nolen Drive, the center has had an influence on Madison's Downtown that goes beyond hard numbers, some say.

'The successful completion of Monona Terrace demonstrated what could happen when the city of Madison, Dane County and the state of Wisconsin in combination with the private sector could get together on a major initiative,' said George Austin, Overture Foundation president, who guided Monona Terrace through the approval process when he was city planning director.

That example was a major reason that W. Jerome Frautschi gave $200 million to build Overture Center, Austin said.

Many local events

Monona Terrace was described from the beginning as a community and convention center, and local events account for roughly half of the center's revenue -- far more of them are booked each year than conventions. Last year, there were 633 community events compared to 60 conventions or conferences. Weddings alone at Monona Terrace account for about 2,000 hotel room nights per year at the nearby Hilton Madison Monona Terrace, said center executive director Jim Hess.

With the space to handle gatherings of up to 4,000 people, the center now faces more competition for conventions due to Wisconsin Dells hotels building more meeting space, said Deb Archer of the Greater Madison Convention and Visitors Bureau.

There is 32,000 square feet of meeting space at the Ho-Chunk Casino Hotel & Convention Center south of Lake Delton, Kalahari Waterpark Resort & Convention Center has 100,000 square feet and Chula Vista Resort has about 80,000 square feet. Monona Terrace has about 87,000 square feet of meeting space.

More hotel space near Monona Terrace has become a priority, Archer said. A potential site is a parking lot behind the Madison Municipal Building.

'We realize that into the future with competition growing the way it is, having a headquarters hotel and additional first-class rooms is key to sustaining business and bringing new groups here,' Archer said.

A different place

There's no question that Downtown Madison today is a far different place from 10 years ago. But did Monona Terrace create a Downtown renaissance?

Not necessarily, said former Mayor Paul Soglin, but Monona Terrace helped push it along. Soglin helped lead the convention center campaign.

'There still would have been continuing revival of Downtown as more Americans discover the center city,' he said. 'But the rather monumental public and private investment is clearly tied to Monona Terrace.'

The center represented the community coming together on a major public investment, said Susan Schmitz of Downtown Madison Inc., an advocacy organization for the central city.

'It really jump-started a lot of the investment that you see,' she said. 'It was a message out to folks that we want to take this Downtown from being a sleepy Downtown to one of the best in Midwest.'

Still, many involved in Downtown development point out that the opening of Monona Terrace wasn't the only development to have an effect.

Tom Geier, a partner in the Loraine condominiums, said investment was also spurred by construction of Grainger (NYSE:GWW) Hall and the Kohl Center on the UW-Madison campus at about the same time.

'It seemed like there was an explosion of donations for the university, and it seems to me they've been the biggest generator of bricks and sticks and buildings,' he said.

For his part, Berge continues to be thankful for the support that Monona Terrace provides for his upscale Restaurant Magnus. After the 1,800-person convention of Trek Bicycle Corp. of Waterloo moved to Monona Terrace from Las Vegas starting in 2001, Berge said it provided a boon for him in August, which is typically a slow time of year for fine dining.

'They fill my restaurant for a week,' he said. 'Monona Terrace was a huge public project that has yet to realize all of its potential.'

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