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Convention center official still pushing 2% room tax
3 more state lawmakers, meanwhile, join opposition to proposal

 

By Amy Rinard
Copyright 1999 Journal Sentinel Inc.
Article date: August 21, 1999
 

Despite a firestorm of opposition from Waukesha County legislators to the idea of extending a room tax to the county to help pay for expansion of Milwaukee's Midwest Express Center, the chairman of the center's board said Friday he would continue to pursue the plan.

"We will be presenting a proposal to the governor to consider future expansion of the convention center, and I'm going to stay with the idea that there be a 2% hotel tax in Waukesha County to support that," said Franklyn Gimbel, chairman of the center's board of directors.

Meanwhile Friday, three more state legislators from Waukesha County said they would oppose any plan to impose a room tax on the county to help build more space onto the $170 million downtown convention center.

In that opposition, Rep. Mark Gundrum (R-New Berlin), Rep. Sue Jeskewitz (R-Menomonee Falls) and Sen. Mary Lazich (R-New Berlin) joined Assembly Speaker Scott Jensen (R-Town of Brookfield) and Assembly Majority Leader Steven Foti (R-Oconomowoc), who already have criticized the idea as a "total non-starter."

"Expecting the state Legislature to pass a law forcing one county to pay for another county's business enterprises is not a good precedent and certainly is not equitable," Gundrum said in a statement. "One county's business interests should not be used to create a conflict with a neighboring county's business interests."

Lazich said: "I am tired of government taxation bailouts. I didn't support the creation of the Wisconsin Center District Board's taxation in the first place, so I don't think I will find it in my heart to expand their taxation authority."

Jeskewitz said too many of Waukesha County's tax dollars already were leaving the county without returning benefits to residents.

In a joint statement, Gundrum, Jeskewitz and Lazich suggested that the convention center look at private funding options rather than raising taxes on business in southeastern Wisconsin.

Gimbel called that suggestion "a bunch of crap."

"It's not going to happen," he said.

"If you are a local philanthropist, you're going to donate money for the arts and other things that benefit local residents," he said. "The convention center serves out-of-towners to enhance the economic viability of the city and the region."

Gimbel said he was disappointed and saddened by the "knee-jerk reaction" of Waukesha County officials.

"It's very unfortunate there is this kind of protectionist attitude out there, which is not in the general welfare of regional economic development," he said. "Waukesha is a direct beneficiary of our successes."

He said the Greater Milwaukee Convention & Visitors Bureau will do a study showing the economic impact of the Midwest Express Center on Waukesha County.

"A lot of people are going to be very surprised that it's a gigantic impact," he said.

Patti Wallner, executive director of the Brookfield Convention and Visitors Bureau, and Dick Richards, owner of the Country Inn Hotel & Conference Center in Waukesha, have said there is little if any ripple effect on Waukesha County hotels from the Milwaukee convention center's business.

But Gimbel said he expected several hoteliers from Waukesha County to come out in favor of the room tax expansion, although he would not identify which hotel owners had discussed the proposal with him.

Because the convention center's taxing authority is at its legal limit, the board would have to ask the Legislature to approve additional tax revenue sources or some other funding mechanism to pay for expansion.

Gimbel said that the room tax expansion plan was his idea and that the board had not discussed it yet.
 

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