Milwaukee's convention center expansion will likely cost more than its $420 million price. Inflation is the culprit.

Tom Daykin, Milwaukee Journal Sentinel
·2 min read
1
Downtown Milwaukee's Wisconsin Center expansion project will likely cost more than its $420 million initial price tag due to inflation.
Downtown Milwaukee's Wisconsin Center expansion project will likely cost more than its $420 million initial price tag due to inflation.

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

The inflation 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 officer 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 firms overseeing the project have found ways to reduce costs without affecting 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 officials 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 final 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.

Related: Milwaukee, Nashville finalists for 2024 Republican National Convention

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.

Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.

DOWNLOAD THE APP: Get the latest news, sports and more

Subscribe to get the BusinessWatch email newsletter.

This article originally appeared on Milwaukee Journal Sentinel: Milwaukee convention center expansion facing higher construction costs