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Whikehart on tariffs, parking, hotels for convention center expansion

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John Whikehart, President, Capital Improvement Board

John Whikehart, President, Capital Improvement Board (Joe Hren, WFIU/WTIU News)

After almost a decade of delay and stalemate on the convention center expansion, the project is moving at 'warp speed' - due to the formation of a Capital Improvement Board. The center has a new name, design phase is done, and groundbreaking is scheduled for June.

Indiana Newsdesk anchor Joe Hren sat down with Capital Improvement Board President John Whikehart to talk about the progress, what's next, and to answer some questions not on the agenda.

Listen to the full conversation by clicking on the play button above, or read some of the questions and answers below. Here are some highlights.

This conversation has been edited for clarity and conciseness.

Hren: It seems like everything is on schedule so far. Is it fair to say?

Whikehart: Everything is on schedule. And actually, I think I've said this before, and I think you've quoted me, we're kind of moving at warp speed for a project of this nature with four governmental partners involved in it.

Read more: Convention center has a new name, bidding begins in March

Hren: Groundbreaking is scheduled for June, but will we see work being done on the site beforehand?

Whikehart: Good question. I mean, they're going to have to bring down the NAPA building, the early voting building, will certainly have to come down. There will have to be work done for utilities, the movement of utilities, ground will have to be broken to move utilities. But before you see steel going up in the air, there will have to be other things, obviously done.

Dora Hospitality presentation to the CIB as the convention center hotel
Dora Hospitality presentation to the CIB as the convention center hotel (Dora Hospitality)

Hren: Dora was selected by the CIB as the hotel developer, but haven't heard much about that process lately, do you have an update?

Whikehart: We selected Dora as the hotel developer, and we made available to Dora, as we did the other two who proposed for hotel development properties that were available to the Capital Improvement Board to our south and to our west. Dora prefers the site to the north, which is not a Capital Improvement Board site. That's the former Bunger Robertson property. It's owned by the redevelopment commission the city of Bloomington.

So we referred Dora to the city of Bloomington. Told both the city and Dora, there was certainly a sense of urgency about moving forward with the project. It's a two and a half year project to get a hotel built. Made that referral back, I believe, in October, and they are there in the midst of talks. So hopefully those talks will progress. We haven't anything to report out, because those are quiet discussions that are going on behind the scenes.

Hren: I know there's plans for a sky walk between the expansion and the existing Convention Center, will that be something needed for the hotel to the existing center?

Whikehart: I know that the hotel, in their proposal had one drawn in. Whether that happens or not, it's been a flash point about sky walks and bridges. The only one that we're involved with is a capital improvement project for the construction of the expansion, is the single bridge that will connect the two facilities, so that we have one convention center. So if the hotel goes on the Bunger Robertson property, then that will be an issue between the city and the hotel.

Convention center expansion render
Convention center expansion render (Schmidt Associates, Convergence Design)

Hren: The Courtyard Marriott has been here for a while, have you heard anything with plans to fit in with what's happening here? Any renovations?

Whikehart: We've had discussions with the ownership of the Courtyard by Marriott. It doesn't meet the definition for a host hotel that we needed for the convention center. It's not a full service hotel, and in our conversations with them, they don't have any plans to upgrade to another tier within that system to be a full service hotel. Certainly, they'll be very important to our plans in terms of numbers of rooms that would be available for convention attendees. 

They mentioned that they thought within the next year, they may be moving forward with some upgrades of some rooms. I think they may have upgraded some of their meeting rooms, but what they're doing we're not privy to at this point.

Convention center hall expansion render
Convention center exhibit hall render (Schmidt Associates, Convergence Design)

Hren: Let's address parking. It was something that we had in a previous feature story that ran a couple weeks ago, and what I'm now understanding now is that there probably won't be events at every venue all at once at the same time.

Whikehart: We're planning an expansion that would permit us to have up to 500 attendees at a conference or convention, which doubles our capacity. Now, there's an exhibit hall in the new facility that could host, separate from a convention or a conference, a dinner for 1200 people, but we wouldn't be renting out the convention center for a convention for 500 attendees at the same time, because they would both be competing for the same space. 

There are 970 parking spaces among the lots that we will own and at the Fourth Street garage. So that's 970 potentially available parking spaces. Even with 200 rentals of the parking garage, you're talking 770 parking spaces, we would never have 1200 people coming to a one event dinner and 1200 separate cars.

The proposal by Dora, the host hotel, is that they want to consider thinking about their own underground parking. So, you know that may take care of part of that. In addition, we need to be aware that there are four parking garages, three surface parking lots. We have a parking lot on the former Bloomington hospital site, a parking garage there. And we're going to have to be creative in the future and think about, well, what do we do with shuttle services?

Convention center outdoor patio expansion render
Convention center outdoor patio render (Schmidt Associates, Convergence Design)

Hren: Another point that I think is important to clarify, is House Bill 1080 that would pave the way for Ellettsville to collect a portion of the Monroe County Food and Beverage tax. It's about $200,000 but that's from the county's portion of the tax, not the city's. The city is putting 100% of their portion into the convention center.

Whikehart: That's correct. The 10% that is now being held out for the county is the county's to do with as they wish. The 90% of the food and beverage tax money, which now is up over $20 million is dedicated to this project. So the 10% the county was already getting was never coming to the convention center project anyway.

Hren: Are you concerned about what we're hearing in the national news about tariffs and costs going up and how that would effect this project?

Read more: Experts weigh in on implications of Trump’s tariff plans

Whikehart: The potential for tariffs, which then become a tax on all of us, and what that could do, what inflationary effect that could have on building materials, on construction materials, certainly, that's a worry. So again, the more quickly we're on board and moving forward, the better for us. We already estimate that every month we delay costs us about $150,000 to $160,000 more dollars on the project. So yeah, it certainly has potential, detrimental potential for us, but we have no control over it, so we just have to keep moving forward.

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