Inflation hits convention center plan

Rising costs could push expansion over $420M

Milwaukee’s convention center expansion will likely cost more than its $420 million price — which could bring more debt for the public project.

The inflation rate’s big increase, and its impact on the price of steel, concrete and other construction materials, is the culprit, according to a Friday report to the Wisconsin Center District board.

The Wisconsin Center expansion, which started last summer, has so far seen bids that are 10% to 15% higher than budgeted, said Marty Brooks, district chief executive officer and president.

That’s well above the 8.5% contingency that was included in the project’s budget that was approved in April 2020, Brooks told the board.

As a result, the total cost will likely have what Brooks called “a variance.”

So far, the district and firms overseeing the project have found ways to reduce costs without affecting the design of the expansion, he said,

But, that process can only do so much.

The district is seeking federal grants to help pay for portions of the expansion project, Brooks said.

Also, the state-created agency, which is supported in part by taxes on hotel rooms, restaurant meals and car rental fees in Milwaukee County, might be forced to borrow more money to help cover the likely project cost increase, Brooks said.

Another alternative would be to forgo interior renovations to the current Wisconsin Center in order to reduce costs, Brooks said.

But center officials are reluctant to do that because it would take away from the goal of having “a seamless experience” between the old and new portions of the Wisconsin Center, he said.

Brooks said he was “very optimistic” that the cost increase could he covered without eliminating that improvement plan for the current facility. He said a final report on the situation would be available by the district’s August board meeting.

Brooks also said he still expects the project, which will double the Wisconsin Center’s size, to be done by its targeted March 22, 2024, completion date despite a recent delay.

That delay was tied to some foundation piles being driven in the wrong location due to a surveying error.

Any costs tied to correcting that error will not be the responsibility of the district.

TVSDESIGN AND EUA Downtown Milwaukee’s Wisconsin Center expansion project will likely cost more than its $420 million initial price tag due to inflation.