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Hotel Complex Vital to Downtown
By Liam Marlaire and Joe Knight
Leader-Telegram staff
Business owners and city leaders say a hotel complex such as the Ramada Convention Center, which faces foreclosure proceedings, is vital to Eau Claire's downtown.
Mike Schatz, economic development director for the city and executive director for the Redevelopment Authority and Downtown Eau Claire Inc., knows the value of the hotel and convention center.
"It brings in outside dollars in the form of convention attendees and tourists visiting the community who will shop in the downtown stores," Schatz said.
Jane Wolf, owner of Silver Feather, a shop on South Barstow Street that sells American Indian jewelry, music and crafts, has seen a host of hotel patrons in her 24 years at the store.
"I have a lot of repeat customers who found me because they stayed downtown at the hotel," Wolf said, adding that local residents often discover her shop while attending a business meeting at the Ramada.
"It gets people down here. Then they can discover what's here."
Dougherty Funding of Minneapolis filed a lawsuit in Eau Claire County Court last week against SB Hotel Management and three Minnesota residents who own the hotel. Court documents show the owners owe nearly $1.5 million.
On Tuesday, Chippewa Valley Airport Service said it will be moving out of the Ramada Convention Center and into a new headquarters later this year.
The business, which currently operates Eau Claire-area terminals at the downtown Ramada, 205 S. Barstow St., and in the town of Union, just west of the city, which is not staffed, is building a 9,000-square-foot travel center at the latter site. It's expected to be completed in late summer or early fall.
"There's a lot that's unknown right now," said Dan Pekol, owner of the service, which provides transportation to and from the Twin Cities. "This gives us more security and helps us keep costs down for customers."
Prime property
Linda John, executive director of Visit Eau Claire, said in an email she was disappointed to learn of the Ramada Convention Center's financial troubles. A motion hearing in the case is scheduled for April 20.
"This property is a very important asset for Eau Claire, not only because of its 123 sleeping rooms and 15,000-plus square feet of meeting space, but also because of its key location in our downtown," she said. "As we continue to monitor the situation, we extend our support to the owners of the Ramada and hope for things to get resolved quickly.
Dougherty Funding has asked the courts to appoint Verona-based S&L Hospitality as receiver for the hotel, allowing the firm to manage and operate the complex. Operations at the Ramada are continuing as usual; an annual meeting for the Eau Claire Area Chamber of Commerce will go on as planned April 17.
John added that the hotel's woes are not indicative of the area's tourism industry. Room tax collections last year were 7.5 percent higher than in 2010, which were 10.5 percent above 2009 results. Collections for January and February this year are 15 percent higher than in 2011, she said, adding that her records show the hotel is not behind in its room tax collection payments to the city.
"We hope that if the present owners stay in foreclosure, we are able to attract new owners with the financial resources to invest in remodeling and updating the rooms to standards that will reflect the same quality this community expects and stands for," Schatz said. "The hotel is in need of a substantial upgrade."
Ken and Nancy Knocke of Wildwood Gifts & Boutique on South Barstow Street said much of their business is from out-of-town visitors who stay at the Ramada.
"It brings a lot of foot traffic downtown," said Ken Knocke.
Mark Patterson and Sharon Ager of Crossroad Books on South Barstow Street said they can tell when meetings or conventions are going on at the Ramada because more people are walking on Barstow Street. Teacher conventions are especially good for business, they said.
Benny Haas, owner of Benny Ha Ha art supplies and Pizza Plus Restaurant across South Barstow Street from the hotel, said people from the Ramada frequent both businesses. But a change in management at the Ramada might be good for downtown businesses, he said.
"If some new life got breathed into it, it's only going to benefit us even more," he said.
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