The Illinois Kids Wrestling Federation’s annual Jon Davis IKWF Kids Open will be moving to Springfield for 2011 and 2012. The Peoria Civic Center has hosted the event for more than a decade. The contest is held every January and has brought in anywhere from 1,300 to 2,100 wrestlers annually. It was held at Redbird Arena until 1995 when the group left to protest ISU’s decision to drop wrestling as a varsity sport.
In e-mails forwarded to The Peoria Chronicle by a source who wishes to remain anonymous, Sports Sales Manager Chad Mentzer of the Peoria Area Convention and Visitors Bureau wrote, “After talking with Mike Urwin with IKWF, there are two reasons why we lost this piece of business…. #1 Hotels. Average cost [in Springfield] is approximately $20 cheaper per night. #2 Facility rental fees. Projected fees in Springfield are, based upon expenses from 2009, considerably less than the Peoria Civic Center.” The group sought a block of 400 room nights for the one-day event.
Joel Green, Director of Sales and Marketing at the Hotel Pere Marquette responded to Mentzer’s e-mail by saying that his hotel had “lowered our rates considerably for 2011… after holding our rates for 2009 and 2010.” January rates are historically low to begin with in the Peoria hospitality industry. Regarding the venue, Debbie Ritschel, General Manager of the Peoria Civic Center, added, “In this particular case the fact that they [Springfield] will not have to cover ice in their arena may have also been a factor.”
In April, Holiday Inn City Centre General Manager Sami Qureshi stated that the top reason conventions skip Peoria is due to the Civic Center’s rate structure. This recent convention loss and the reasons cited by the IKWF appear to support that contention.
The loss of this event also highlights the competitive nature of hotel room pricing. If the Pere Marquette lowered its room rates below 2009 levels and Springfield was still able to offer rates $20 per night lower, one wonders how a four- or five-star Marriott hotel will be able to offer competitive rates that are high enough to pay off the debt service on a $37 million bond taken out by the City of Peoria.
Watch out. Next thing you know they will want to lower fees and increase the HRA tax.
It is all public money. If the PCC lowers its rates, that is taxpayer’s money also.
Let me add, as people tend to take both sides on this-whatever suits their argument-that there is a reason there is a Courtyard included in this project. Courtyard will be a 2 star and cheaper than the Pere Marriott.
See what happens!
Just wait until the museum is built!
150 Observer — The Pere is already a two-star hotel and not saddled with a $37 million bond to repay, and Springfield is still able to offer a rate $20/night lower than the Pere. You think the new Courtyard is going to be able to swing a RevPAR that’s more competitive and high enough to repay the bond?
Interesting how Debbie Ritschels name keeps coming up and it is never associated with good news. I think she was a major proponent of closing Woodruff and is also on the board of the Charter School. Incidentally, Her and Roberta Parks are often seen at District 150 board meetings whenever a vote comes up to close one of Peroia Public Schools. I may be wrong but she might have been on the Superintendent search committee too. This person has too much of an agenda, and it may not be in the best interests of Peoria. Bad vibes going on here. Absolute power corrupts. Keep a watchful eye out.
I think Debbie R. from the PCC does a good job. I also think it is commendable when local leaders get involved in civic causes. We need more people actually getting involved as opposed to sitting on the sidelines taking potshots at those trying to do the right thing.
There are a small number of these people in town who have the best interests of the city in mind when they volunteer for these no paying visible positions. They ought to be praised for their efforts.
Yes, CJ, I think the new Marriott project can succeed.
I will add that the Pere will not be “saddled with a $37 million dollar bond”, the city will–just as E Peoria will be saddled with a $40 mil bond–not the Bass Pro Shop people.
The city of Peoria is to pay off the bond with HRA taxes, sales taxes and property taxes, the Pere will not have that debt service on their books. Unfortunately, your question illustrates that many people still don’t understand this project and how it is to be funded.
Sorry but from personal experience i have seen how members of teh PCC and other civic members have not followed througn on a project that could have helped our community and our students had they helped in the planning and orchestrating of the “High Tch to Work” grant that they partnered with District 150 a few years back. Instead they allowed students to be disrespectful and not show up when required with no communication to the facilitators on how they wnated things handled. So whwn things got tough no Rob Parks, no PCC no PCCEO no help for the grant , students nor the facilitators. One of the students they let slipp through the cracks slipped into bringing a gun to school and lost any chance of a future. Leadership like theirs is what is destroying our community instead of improving it. So their agenda is for their own personal gain not for our community.
Skeptical1, I am skeptical of any post re: education that is as poorly written as that. Horrible spelling, poor grammar and a post that is pretty much unreadable. In addition, you seem to have a personal agenda re: some program from a few years ago that leads you to say that community leaders “agenda is for personal gain”. In other words, you make little sense.
Yes, I hurried in my posting. So there were some grammatical and spelling errors. Sorry if everyone is not as perfect as you 150 observer!!!! Oh, observer have you been involved in any board meetings,community service? Maybe your screen name is indicative of what you do, just observe and criticize.
If I have an agenda , it is to help imrpove our community and our schools.
Guilty as charged for that.
I am tired of those that use our community as a stepping stone for their own recognition and/or political gain. Peoria is not the door mat for those that believe they are so privileged to wipe their feet on as they walk through.
So take Rob, Debbie, Macfarland, Spany and the rest of the gang and find another community that will buy your load of crap and set you up at their expense. We ant leadership that really cares about the masses and not just those( the aforementioned gang) that can give them something for nothing.
Yes, I hurried in my posting. So there were some grammatical and spelling errors. Sorry if everyone is not as perfect as you 150 observer!!!! Oh, observer have you been involved in any board meetings,community service? Maybe your screen name is indicative of what you do, just observe and criticize.
If I have an agenda , it is to help imrpove our community and our schools.
Guilty as charged for that.
I am tired of those that use our community as a stepping stone for their own recognition and/or political gain. Peoria is not the door mat for those that believe they are so privileged to wipe their feet on as they walk through.
So take Rob, Debbie, Macfarland, Spany and the rest of the gang and find another community that will buy your load of crap and set you up at their expense. We want leadership that really cares about the masses and not just those( the aforementioned gang) that can give them something for nothing.
Yes, I have been involved in many community positions, none paid.
You don’t have to be perfect in your posts, but if you want to convince people of anything, you need them to be readable and your arguments coherent.
Personal attacks aren’t the way to convince anybody, by the way.
Practice what you preach. I first volley was thrown by you.
I am glad that you volunteer for the community.
I just hope it is for the right reasons and not for your own gain.
well, I have yet to gain from a volunteer position. I wish I knew how to turn that into a gain.
150 observer, Skeptical’s arguments were perfectly coherant to me. Do you have a comprehension problem? No one would find any fault with an individual seeking to serve on a Board of Directors or professional committee. It is when these people shamelessly serve on multiple committees, some that have direct impact on the other, and knowingly bypass the system of checks and balances to pursue their own and their “ilks” agenda, that it becomes no longer selfless, but almost pathological. A few examples – the Charter School Committee, the Peoria District 150 Superintendent Search Committee, and the Peoria Area Chamber of Commerce Political Action Committee. Get your mitts on these member lists (if they will let you) and you will see who is calling the shots in this town. One passes the issue to the next for approval and they are all the same people! Do they care about the Woodruff Community? Do they care about the Peoria Central community? Lets poll the families who live in those districts and get their opinion – not that their opinion would mean a hill of beans to Ritschal et al.
Shame on the Peoria District 150 Board of Education who allowed these important commmittees to be pirated by a majority of individuals who do not live within District 150 boundaries. Yet one more example of a serious dereliction of their duty to represent the taxpayers who elected them. Who would like to take a wager that Ms. Latham met with Ms. Ritschal before she ever layed eyes on a Woodruff family or teacher? Anyone?
My apologies to 150 Observer, I inadvertently put 3 “m’s” in the word “committee”.
the people “who call the shots in this town” are those that show up and do the work. I am thankful for them.
Interesting. I show up for work every day. I live within District 150 boundaries, an apparently rare and unique qualification for a prospective District 150 Committee member. No one has ever once solicited my input for a committee pertaining to District 150. On the contrary. They do everything in their power to exclude the opinion of myself and the thousands of others that feel as I do.
150 Observer: Yes, I’m guilty of using shorthand in my previous post. Let’s get specific so there are no misunderstandings. The City would be taking out a general obligation bond, and that bond would be repaid (the City hopes) by project-generated revenues. If the project does not generate enough revenue, the general fund is tapped to pay back the bond, since it’s a G.O. bond and not a revenue bond. This would be similar to the situation with MidTown Plaza. So what project-generated revenues is the City counting on?
Several, but most of them are tied directly or indirectly to RevPAR:
The estimates from the developer are predicated upon the following occupancy rates: 2012 (60%), 2013 (69%), 2014 (72%), 2015 and beyond (74%). The City’s “more conservative” rates are: 2012 (60%), 2013 and 2014 (65%), 2015 and beyond (68%). The estimates were also based on 489 rooms, and we know that the number of rooms has been reduced since this was first pitched to the City in 2008.
So, to restate my earlier comment more precisely: The Pere is already a two-star hotel and doesn’t need to worry about getting enough rooms sold at a high enough occupancy to repay a $37 million bond from the City, and Springfield is still able to offer a rate $20/night lower than the Pere. You think the new Courtyard is going to be able to swing a RevPAR that’s more competitive than Springfield’s rates and adequate to raise enough tax revenue to pay back the bond?
I think not. At the so-called conservative occupancy rates cited by the City (which are still highly optimistic), the project barely comes out ahead. Any lower, and the general fund is picking up the slack. And that assumes that two new restaurants open and are successful, and that the increase in occupancy rate is a net increase — i.e., that it doesn’t depress occupancy at the other hotels in the HIZ TIF. Everything will have to work out just perfectly for this project to “pay for itself” as the Mayor insists it will. When was the last time a city-funded project worked out just perfectly?
I think the Marriott project can make it–as I said before. Will it? Damned if I know. Damned if anybody knows, unless you can tell the future.
I think it is perfectly valid to question the viability of the project as well as the government role in private enterprise.
I do feel the PCC absolutely needs this project in order for it to be successful. I also know Cat really wants it and will push people there. I also know the museum will be a big plus for the hotel project as well as the downtown hospitals.
If there was one mistake made in my mind, it was building a $55 million PCC addition without a firm hotel commitment.
If the city wants out, they can get out easily as the original redevelopment agreement is going to be replaced by a revised agreement. There is no problem getting out if the city wants to…..
Let me add that RevPar is probably not the most useful metric in a hotel with substantial meeting room rental, food and beverage, parking, shops, etc. There are more sophisticated metrics used these days for full service hotels. GOPPAR is more commonly used these days for larger full service hotels.
There is no 5 star Marriott in the world. This hotel won’t even be a 4 star. Everyone needs to quit referring to it as a potential 4 star hotel, or a “full service” hotel, or a Marriott Hotel. It will be a Courtyard Hotel by Marriott. Like Hilton Garden Inns–by Hilton. Probably a 2 star hotel. No where near the level of service, amenities or furninshings as the Embassy Suites in E. Peoria.
That needs to be kept in perspective as the debate goes on. There is no way to make accurate comparisons or business forcasts unless you are dealing with accurate facts at the outset.
Some still don’t understand the Courtyard is only the new hotel. The renovated Pere will be a Marriott. The “stars” don’t come out till after it is opened a year. They are shooting for a 4 star for the Pere. Time will tell whether they get it.
I am still shocked that some can’t even grasp the basics of this project.
Angela. The Pere will be a 4 star after renovations. The Courtyard will be a 2 star.
Truth is, Courtyards are loosing share to the competition. It is a national trend.
-Competition: Regoinally, we have a hotel with an attached convention center, the embassy suites. We also have a Marriots as well, Courtyard, Springhill and Residence Inn in Peoria, and Fairfield in EP. These Marriotts hotels do not average rates the Mr Matthews promised, and Cat will not pay those except for the Top level management. Hotels are not running full and not with high rates, new hotel rooms are going to create a vacuum in current travel, not add to more revenue.
-Amenities: Most companies and leisure travels are looking for value and add-ins (freebies), and Courtyards charge for quite a few amenities. Embassy gives away drinks and breakfast. Courtyard charges for both.
-Full Service at work: The full service in bloomington charges $160 a night. They are not filling, and they are city backed (also partially owned by JQ Hammonds who EP embassy, and guess where he embassy refers to when they are full?).
-Profitability: Most hotels are break even around the 80% to 90% occupancy mark. That last 10% to 20% is the profit. Ask the chamber for a market report on occupancy, you will see occupancy in the low 50’s and Peoria’s average rates in the $50 to $60 range. Hotels that charge low rates are going to be closing soon or eating up all their cash reserves. You will see more close this next year (Radisson is a sign of things to come).
-Conventions conflict with business travelers: Most conventions that will pay higher rates, host their conventions week days. The full service hotel that will take these large conventions, will end up turning away loyal business travelers. Loyal business travelers do not like change and lack of availibility, and that leads to disloyalty. Leisure travelers do not like them because you have to pay for internet, breakfast, health club, cocktail hour, ….
-PCC will not do what it promised, they just want their meetings back that embassy stole: PCC charges too much, and conventions are booking elsewhere. Overheads are high with a unionized labor pool, covering the ice, inefficient older design…
I will admit to being a little biased, but I work in the industry, and all the signs point to either a shift in business closings of other hotels or a failed venture leaving tax payers on the hook.
PS: I did not proof this very well.
There would be a lot less hotels everywhere if the break even point really was 80% to 90% occupancy.
Bass Pro may save the “vision” of the “movers and shakers” in this community who saw the new ball park, the Gateway Center, One Tech Plaza, the Riverplex, the expanded Civic Center, the expanded zoo, the renovated and exspanded Pere, the riverfront museum, and the Cat Visitors Center as the newaring the completion of the vision.
Plus Cubs Food plus tahe Radisson, IN-Play, River Station, Damons, Globe Mfg., FireFly, plus…. Opps.
So where are we on the timetable? The ball Park, is it drawing big and making money for it’s investors, did it add new businesses to the area? You answer, I can’t since I’ve had my shares on sales for over 10 years without any valid offer.
Gateway Center? Losses a reputed $500,000 a year and I hear the city would like it to disapear.
One Tech Plaza? It turned out to be an ordinary business building and pressure from the movers and shakers plus the developer, stuck (its still stuck) the County to buy into the deal with money they didn’t have.
If a new BelWood County Nursing Home is built it will be built with at least $48 million the County does not have.
And, ah, the Riverplex once touted 3 years ago to attract 15,000 family memberships and still a financial burden while shifting expenses to other parts of their budget. What happended to all the PPD planned sports and ball facilities promised since 2002??
Expanded Civic Center? It’s financial situation is telling and will tell more as the years pass.
The Pere and Marriott? The investor who will lose money on this deal IF its built, is guess who, the mostly unwilling taxpayer. Plus MOST LIKELY, the Holiday Inn City Center, the Grand Hotel and the Mark Twain. Count on at least one more new hotel to be built in East Peoria added to the many built around the Shoppes.
And another, ah. The riverfront museum still short at least $14 million iF the figures I see, are correct, and I believe they are, with only a couple million left in cash. (Out of $14 million raised by the subsidies and the fund drives) Wait till the visitors see the entry fee compared with Lakeview, the extra charges for the traveling exhibits, the IMAX??? and the extra charge to park UNDERGROUND. (Free parking at Lakeview)
The Pro Bass locations bring in 3 million visitors a year, the Civic Center ??, the RiverPlex ??, the zoo, (170,000 to 400,000 vistors a year) depending on whose figures you use, The Gateway Center, the riverfront Museum, with all the thingss already built and in some form of progress toward development, why are sales taxes and property taxes down and public bodies scrambling for money?
Why is the city, #150, possibly the PPD, (they still need at least $5 million to complete the new zoo expansion) the County, Springdale Cemetery, the Regional Superintendent, etc., all so short on funding as to create alarm to the users, employees, fee payers and taxpayers?
Oh, it’s the economy. Is that the one that may be heading for a long trough or a double dip? Didn’t see it coming?
I see.
The volunteer effort to renovate the Park Pavillion into a Childrens Playhouse is still short millions. I applaud the volunteers who worked wo hard to raise the money but facts seldom take effort into the equation. They are still short millions.
Sorry, C.J., I din’t start out to do a blog on your site but once I got started……..Mispellings? Sorry, no Spell-Check.
If 80% to 90% occupancy was break-even, there wouldn’t be any hotels in Peoria. Breakeven for most hotels is significantly below that.
I would like Skeptical1 to tell us more about this “High Tch to Work” grant that Mr. Bragg & PCCEO was involved with Dist. 150. And please
check your spelling when you post.
I know PCCEO and Mr. Bragg has ha many collaborations with Dist. 150, but I have not heard of the “High Tch to Work”, (as skeptical1 phrased.)
I would also invite skeptical1 to come down to PCCEO and meet with us
so he/she can see exactly what great things are happening in the community, thanks to Mr. Bragg.
Repost due to my spelling error:
I would like Skeptical1 to tell us more about this “High Tch to Work” grant that Mr. Bragg & PCCEO was involved with Dist. 150. And please
check your spelling when you post.
I know PCCEO and Mr. Bragg has had many collaborations with Dist. 150, but I have not heard of the “High Tch to Work”, (as skeptical1 phrased.)
I would also invite skeptical1 to come down to PCCEO and meet with us
so he/she can see exactly what great things are happening in the community, thanks to Mr. Bragg.
The grasp you all of of local ‘what-not’ is amazing! The technical jargon being posted here blows my mind [what little is left].
Angela said it best I think…”There is no way to make accurate comparisons or business forcasts unless you are dealing with accurate facts at the outset.”
She was referring to the hotel, but this has been Peoria’s problem all a long. The entire museum project was promoted on false, contrived data, as is this hotel project. Spending millions Peoria does NOT have is an issue that must be addressed. Peoria has champagne taste, without even having beer money!
150observer,
“the people “who call the shots in this town” are those that show up and do the work. I am thankful for them.”
– Wonderful. There are a number of worthy volunteers giving their ‘all’ for the cause, but you seem to be exhibiting a fixed false belief that is resistant to reason or confrontation with actual fact. Far too many people who currently ‘serve,’ do so out of their own self-serving interests. Yes, they are only trying to do what they think is ‘right,’ the problem is… EVERYTHING they do they think is right!
If you are not part of their ‘circle,’ you are told to keep your opinion to yourself. The museum is only one example of this. You ‘assume’ that the hotel will benefit the musseum… that only holds true if the museum will benefit Peoria… at all! This will turn into a classic case of borrowing from Peter to pay Paul [with TIFS of course].
Thank you.
I forgot…………
Why did Peoria lose the Wrestling Tourny to Springfield? Not enough hotel space?
There are a myriad of reasons why some conventions and meetings don’t come to Peoria. It is mind numbing simplistic to select one “rejection” and project that on all of them.
I have yet to run into any well informed local observer who doesn’t realize we need more quality rooms near the PCC and that an attached hotel would be a positive thing.
As I have said numerous times, it is entirely fair to question the funding mechanism, financial projections, hotel appearance and whether this should be a public-private partnership. Question the cost vs. the benefit or one of the various valid concerns.
But, please, if you want to look credible, don’t try to project one rejection on all rejections. It makes opponents look desperate rather than rational. Grasp on to the good arguments, don’t make up arguments or distort them.
Coherent arguments are very persuasive. Emotional, knee-jerk arguments aren’t.
Clever. Dismiss all of my arguments as “emotional, knee-jerk arguments…,” without addressing any of them. I would hardly call any of my arguments emotional.
The “well informed local observers” you run in to must not include the great number of those who post on this blog, the J Star, etc.
It is a simple matter of following the track record established by the ‘people’ whose abilities you go to such great lengths to promote.
A new hotel may or may not work. I do know that the decision to build or not will come down to the desires of a very ‘few.’ The boards of every major charitable institution in this city are controlled by the same people. Take a roll call and find out for yourseelf. The decision to build a museum, hotel, etc, will not include a public forum, nor will these ‘people’ tolerate any nay-sayers or opposition to their inevitable plans. Either you have an ‘in’ with these people, or you are another dupe.
P.S. Where does the museum plan stand now?
As far as looking “credible,” try answering some of the proposed questions and/or concerns. The future of the hotel, museum, Keller Trail, are all controlled by the same group. Don’t pretend that the course of one does not determine the course of the other.
It all begs the same question…where will the money come from?
I am specifically talking about the new hotel and I have “answered” (or given my opinions) on any that were asked. You want to ask me a question, I will happily answer.
Please, folks, make coherent arguments. It is not coherent to say that because a wrestling group wanted cheaper hotels that all groups reject Peoria for the same reason. The same goes for the pro-hotel argument, many groups reject Peoria because of inadequate hotel rooms, but anybody who says that is the only reason is being disingenuous.
As for Keller Trail and the Museum, I don’t have strong opinions on either and have not voiced any pro or anti opinions here.
“It all begs the same question…where will the money come from?”
Hotel-taypayers
Museum-taxpayers
Keller Trail-taxpayers
Bass Pro Shop-taxpayers
Government gets all of its money from taxpayers. Anytime government is involved, taxpayers fund it.
Next?
“Clever. Dismiss all of my arguments as “emotional, knee-jerk arguments…,”
That is a strawman. I was specifically talking about one argument. Never did I say “ALL” of your arguments were knee jerk. I really haven’t read “all of your arguments”.
Here is exactly what I said:
But, please, if you want to look credible, don’t try to project one rejection on all rejections. It makes opponents look desperate rather than rational. Grasp on to the good arguments, don’t make up arguments or distort them.
It is not coherent to say that because a wrestling group wanted cheaper hotels that all groups reject Peoria for the same reason. The same goes for the pro-hotel argument, many groups reject Peoria because of inadequate hotel rooms, but anybody who says that is the only reason is being disingenuous.
150 observer,
1. I NEVER said that the wrestling tourny decided against Peoria because of the need for more/cheaper hotel rooms.
2. Hotel-taypayers
Museum-taxpayers
Keller Trail-taxpayers
Bass Pro Shop-taxpayers
Government gets all of its money from taxpayers. Anytime government is involved, taxpayers fund it.
– My point exactly. Should local govt. be spending the TAXPAYERS money like we have an endless supply? Our LOCAL govt. is being criticized for just this reason. Most “informed” observers I speak with are tired of subsidizing these grandiose schemes, what ever they may be, especially when basic services are lacking, [not to mentioned a school district that is still in shambles].
Like i wrote earlier, the same govt. you speak of is responsible for all of the ‘projects’ I mentioned above. Don’t start this apples and oranges thing now. The only thing I see here, is you being disingenous about a project YOU happen to support.
“I really haven’t read “all of your arguments”.
– That is the same problem the Peoria City Council seems to have when it comes to the voices of the people, excuse me…, the TAXPAYERS.
Maybe you should read/re-read Merle Widmer’s last post. He is far more…’eloquent’ than I in such matters.
I have not stated any opinions here on government spending money on local private projects. None.
My thrust here is for people to make coherent arguments, just don’t throw stuff at the wall and hope it sticks.
– “That is the same problem the Peoria City Council seems to have when it comes to the voices of the people, excuse me…, the TAXPAYERS.”
The city council is elected and apparently the taxpayers of who you speak wanted them as their council members. That is how it works in this country.
“I have not stated any opinions here on government spending money on local private projects.”
150, you do not want to take responsibility for anything, do you? You have denied commenting on the museum, Keller Branch Trail, hotel, and now, govt. spending….., what exactly is you point after posting a near infinite number of blogs?
“That is how it works in this country?”
That is YOUR coherent argument?
so we lost a wrestling tournament because we didn’t have as many hotel rooms as Springfield. So what? I bet we don’t have enough hotel rooms for Peoria to host the Democrat/Republican National Conventions either. If there is a market for hotel rooms beyond what we have, a private comapany should provide them, if they don’t think they can do so, then the taxpayers should not be subsidizing hotel rooms, period.
“Government gets all of its money from taxpayers.”
How ironic… taxpayers get all THEIR money from the government. ALL money comes from the Federal Reserve through the Government.
“150, you do not want to take responsibility for anything, do you? You have denied commenting on the museum, Keller Branch Trail, hotel, and now, govt. spending….., what exactly is you point after posting a near infinite number of blogs? ”
Actually, no, you are wrong. I have made numerous comments on the hotel issue. Is there a rule here that I have to comment on the Keller Trail and the Museum? Did I miss something?
The wrestling tournament was lost for two reasons.
-Peoria Civic Center Prices were too high
-Peoria hotel rates were too high
We did not loose the tournament due to number of hotel rooms in the market.