TUE AM News: Williams-Smith addresses negative views of Milwaukee ahead of RNC; Restaurant association leader shares Milwaukee-area insights on RNC security zone

June 25, 2024

— Visit Milwaukee’s president and CEO Peggy Williams-Smith quipped that her initial reaction to Donald Trump reportedly calling Milwaukee a “horrible city” was “oh, shit,” but added “the amount of press that was generated from him saying that was amazing.”

“We had people all over the country, Stephen Colbert, Jon Stewart, we had our county exec and our mayor on every national news outlet talking about how great Milwaukee is,” she told a WisPolitics-Milwaukee Press Club luncheon in Milwaukee yesterday. “And I think that that just shows that you don’t mess with us.”

Trump’s campaign initially said the comment was about crime and elections in the city, but Trump later denied saying it.

Williams-Smith also responded to negative feelings about Milwaukee among some Wisconsin residents, affirming her desire to focus on good things happening in the city.

“We’re always going to have haters; this is the way of the world right now,” said Williams-Smith. “I think as long as we continue to tell the good, then we’ll start to see some of those perceptions change.”

She said she is hopeful that next month’s Republican National Convention will change negative perceptions, thanks to the $200 million the convention is estimated to generate. Organizers and the U.S. Secret Service last week announced the final RNC security zone, and businesses located within or nearby are feeling a mix of excitement and worry about how the convention will impact their operations, according to Wisconsin Restaurant Association President and CEO Kristine Hillmer.

The positive business and money-making potential of the RNC is likely to encourage other conventions to make their way to Milwaukee, Williams-Smith argued. She touted major conventions, such as Expo! Expo! and VFW, coming to Milwaukee in the next few years. Additionally, she revealed that in August the city will announce a major event that would not have come to Milwaukee if not for the RNC.

She also acknowledged that Milwaukee still has room for growth. While hotel occupancy is not currently a concern, a lack of hotel space within walking distance of convention centers is one of the biggest challenges currently facing Milwaukee in terms of convention business growth.

She singled out having a large Marriott hotel would be a boost for convention business, as Marriott is the second-largest hotel brand globally, with the largest reservation system and national sales force.

“Although we have a lot of Marriott product, it’s not one big Marriott Hotel,” she said. “So we miss out on some of those groups that may choose to go through a national sales office.”

She also said there is room for another convention center hotel in the city, but added such a facility hasn’t been built in the country in the last 20 years without subsidies.

“That means it’s not going to happen tomorrow; it’s not going to happen two years from now,” she said. “We need to be working towards that, we need to be forward-thinking.”

Watch the video.

— In a separate interview, the restaurant association leader said the security zone being released gives local restaurants certainty for planning purposes, so they can ensure their employees and needed supplies can get through.

“Overall there is an absolute excitement, but there’s still a little bit of worry,” Hillmer told WisBusiness.com yesterday. “If you’re in the security zone, will you be getting enough traffic, and will you be getting enough business?”

Organizers expect around 50,000 more people in the area during the week of July 15-18, but Hillmer noted that increased traffic will be limited to specific times. Understanding the security perimeter and procedures will help businesses match their operating hours to peak demand, she said.

She said she’s hopeful that workers in the area will still come downtown during that week rather than clearing out entirely, “noting there’s an excitement of seeing an historic event happening in Wisconsin” regardless of political affiliation.

“Whether you believe in the politics or not, that’s not what this is about,” she said. “This is about the opportunity to showcase Milwaukee, showcase the amazing hospitality that we give all the time to our guests… This is all about helping us showcase what we have to offer as a city, and there’s so many great things.”

She’s urging restaurants and other hospitality businesses in the area to take advantage of the opportunity presented by the “captured audience” within the security zone, and think about how to attract delegates and other visitors.

“Whether it’s sandwich boards on the sidewalk, or two-for-one drink specials, or whatever it is … those businesses that do a good job at that, they’re the ones that are going to get all that business coming into them,” she said.

Meanwhile, Tavern League of Wisconsin Executive Director Mark Jefferson said much of the concern from businesses in the area “center around how committed the city will be” to making sure protesters are peaceful and that violence and destruction won’t be tolerated.

“People understand there will be protests, security zones and perimeters at national conventions,” he said in an email. “But it’s not unreasonable to insist that demonstrations or counter demonstrations remain respectful and under control.”

— Milwaukee-based Derco Aerospace and a Connecticut-based Delaware corporation called Sikorsky Support Services have agreed to pay $70 million to resolve claims that they overcharged the U.S. Navy for parts and materials.

That’s according to a release from the U.S. Department of Justice, which recently announced the resolution to the False Claims Act allegations. The companies allegedly entered a contract under which SSSI agreed to buy parts from Derco at the price that Derco paid to acquire them plus plus a 32% markup, while SSSI sought reimbursement from the Navy for what it paid for the parts.

Because the costs allegedly resulted from a “cost-plus percentage-of-cost” or CPPC subcontract, the cost vouchers submitted to the Navy were “false and fraudulent,” the release shows.

Gregory Haanstad, U.S. attorney for the Eastern District of Wisconsin, says government contractors “must put compliance with the law” above their own profits.

“This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract while deterring future violations of the law,” he said in the release.

Both Derco Aerospace and SSSI are subsidiaries of Lockheed Martin, though the case began in 2011, before the military contractor acquired Sikorsky.

“We are pleased that the settlement will bring this case to a conclusion and there is no finding of wrongdoing by Sikorsky or Derco Aerospace,” a Lockheed Martin spokesperson said in an email.

See the release.

— Gov. Tony Evers has announced $4.8 million in loan funding to expand freight rail at sites in Luxemburg, Reedsburg and Wrightstown.

Funding for the three projects comes from the Freight Railroad Infrastructure Improvement Program, supporting upgrades to agricultural facility equipment, new storage at a transload terminal and a new industry track.

Recipients include: Rio Creek Feed Mill in Luxemburg, which is getting $1.5 million to build a new grain bin and support tower as well as loading and unloading equipment; Riffey Transload, getting about $800,000 to build a new trackside storage building in Reedsburg; and the village of Wrightstown, getting about $2.4 million to build more than 4,000 feet of track.

See the release.

— Two Wisconsin construction businesses have signed onto the U.S. Department of Commerce’s Million Women in Construction Community Pledge, federal officials announced.

The Appleton-based Boldt Company and Miron Construction in Milwaukee recently joined the pledge after U.S. Secretary of Commerce Gina Raimondo visited Milwaukee to discuss women in the trades, according to a release from the agency.

Companies that sign the pledge say they’ll focus on boosting equitable hiring practices and workforce development to “create broader pipelines and opportunities for women,” the release shows. That can include building community partnerships to reach women and girls, offering child care and more.

Dave Kievet, president and CEO of The Boldt Group, says the company recognizes the importance of women “at every level” of the organization, from the skilled trades to leadership.

“Boldt will continue to build on women’s access to training, jobs and leadership coaching; scale our equitable hiring and workforce development efforts; adopt more best practices and support women in a safe, healthy and respectful workplace in alignment with the pledge,” Kievet said in a statement.

And Dave Walsh, executive vice president of human resources for Miron Construction, notes women make up just 10.9% of the construction industry and 4.3% of the skilled trades.

“We are excited to see the Million Women in Construction pledge help fill the skilled trades gap with passionate and smart individuals and increase gender diversity in the construction industry,” Walsh said in the release.

— Sarah Pancheri, the new president and CEO of Milwaukee World Festival, says the imprint of Summerfest and other festivals on the Summerfest grounds will continue to grow under her leadership.

“It’s incredible,” Pancheri told “UpFront,” which is produced in partnership with WisPolitics. “You know what we do here, and the jobs we provide, the direct impact of Summerfest last year was $262 million across all events for economic impact. That’s $1 billion every four years. And it’s what we have come to know as a Milwaukee summer. So we really take that charge very seriously and feel like it’s an important contribution to the overall tourism ecosystem, which we know continues to grow and be really an important part of Milwaukee’s economy.”

Summerfest continues Thursday in the midst of a three-week stint in its 56th year along Milwaukee’s lakefront.

“The competition certainly across Milwaukee, and really across the entertainment industry, is very real,” Pancheri said. “We know our charge is really to offer a wide variety of entertainment. So for us it really is about how many genres can we hit, how many different artists can we really host here? And as we think about putting lineups together, it’s really making sure that we’re able to be true to the secret sauce of Summerfest, which is that diversity across the board.”

See more from the show.

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