Survey Shows Public's Confidence Slipping After Radisson Hotel Project

Half of survey respondents say they have less confidence in board, 40 percent say they have "about the same."

The public's confidence in the Village Board is waning stemming from the village's financial stake in the financial troubled , according to a Menomonee Falls Patch survey.

The unscientific survey was conducted by Patch to gauge residents' views on the troubled hotel. The survey, which was posted on Patch for the last three weeks, was completed by 99 people, all but seven of whom are Falls residents.

Half of the respondents said they have less confidence in the Village Board as a result of the problems with the Radisson, which went into , and is embroiled in and has missed its first payment on a $17.65 million loan from the village.

Another 40 percent of the respondents said they have "about the same" amount of confidence in the board. A total of 5.5 percent said they are more confident in the board.

According to village Trustee Sharon Ellis, the key to rebuilding and maintaining the confidence of the public is to always to take the citizenry and constituents into consideration when making decisions.

"The Radisson is a one-time situation … and as that continues to unfold, I'm confident that the citizens will see that we voted in their best interest," she said in an interview Friday.

In addition, half of those who responded to the survey said the village should never have lent developers $17.65 million to build the establishment. Another 30.6 percent said "it's still too soon to tell."

"Every member that voted for this loan should be thrown out of office. This is an example of government run amok," wrote one respondent.

Another respondent had a more favorable perspective of the project.

"I thought it was a good idea. The building was an eyesore, something had to be done. I also thought it would bring jobs--which it did ... but now what will happen?" the respondent wrote.

"The appointment of a receiver is not an indication of the quality of service and the type of service that is being run there," said village Trustee Stephen Raymonds.

The hotel’s ownership group Lodging Investors of Menomonee Falls, operated by Dean Grosskopf, is facing a civil fraud suit from investors claiming the management company diverted $1.2 million from bank accounts for two Fairfield Inn hotels in Green Bay and Beloit.

There are also several construction liens totaling $2.8 million in unpaid bills by the group stemming from the Radisson’s development in Menomonee Falls.

The group missed its first payment on the loan, and the village has successfully petitioned the courts for a receiver to oversee the cash flow of the hotel and secure the village’s share of the revenue.

Ellis said it is too early to characterize the Radisson project as a failure.

"We can't make our decisions on short-term thinking," she said. "My decisions have to be made on the long term, while taking into consideration all that I know or all that I can find out in the research and then making the best decision based on long term what is good for the community."

More than one-third of respondents said they doubt that the business will ever be successful. However, 54 percent of those surveyed said the Radisson has had a positive impact on downtown, and nearly 40 percent said they supported the hotel from the start — and still do.

"I would like to see it succeed, but it will take the help of the community to use the property" one respondent wrote.

"With another hotel just down the road in Milwaukee, I did not see a market for this," another respondent wrote.

Survey respondents were divided on many issues regarding the hotel. For example, 36 percent said they are not confident the Radisson will remain in business for the foreseeable future, but 30 percent said they were confident or "very confident" the business would last.

Likewise, 39 percent said they supported the project from the beginning and still do; but 37 percent said they never supported the project.

Length of time living in the village seemed to be a factor in the survey results. The longer a respondent lived in the village, the more they seemed to disapprove of the the Radisson project, and were less confident that the hotel will remain in business. 

Do you believe village officials made the right decision in lending this money to the Radisson?

Response Percent Response Count Yes 19.4 19 No 50 49

Too soon to tell

30.6 30

Overall, do you have more or less confidence in village officials as a result of the recent financial problems with the Radisson?

   Response Percent Response Count More confident 5.5 5

Less confidence

56 51

About the same

38.5 35

The Radisson Hotel is part of a special taxing district created by the Village Board. Do feel the village has used tax incremental financing effectively to promote development in the village?

Response Percent Response Count Yes 28.6 28 No 40.8 40 Too soon to tell 13.3 13

Don't know enough details

17.3 17

How confident are you that the Menomonee Falls Radisson will remain in business for the foreseeable future?

Response Percent Response Count Very Confident 10.2 10 Confident 20.4 20 Unsure 33.7 33 Not confident at all 35.7 35

Bucky December 28, 2011 at 02:18 AM
Fuss ... What's all the pissing and moaning about. These are your boys. This is the Walker way. This is Republican corruption at its finest. This is how the Re pug system works. Walker is giving away all the tax payers money to big corporations so why not these clowns. If you don't like what's happening go sign a recall petition or just suck it up and live with it.
MFalls Girl December 28, 2011 at 02:07 PM
I would like to know how many businesses the Village loans money to and doesn't get it back. Did it give money to the Irish Pub, the new Angelo's (where John Harbor's went out of business and probably got a loan from Village and never paid it back), the nutrition place and just went out of busines, etc, etc. Does the Village give money to EVERY new business in M. F. I think Nino's had problems in the beginning paying off their loan and I wonder if they ever paid the loan off. I am just asking if anyone knows which businesses get loans.
MFalls Girl December 28, 2011 at 02:11 PM
I am wondering how many businesses that have gone out of business after only a year or 2 have received a loan from the Village. Did John Harbor's, (now Angelos who received a loan), did the nutrition place across from Asso. Bank get a loan (they are now out of business as is the one before them), etc, etc. Does anyone know how many business get loans from the village and can we find out which businesses are paying back the loans.
Keith Best December 28, 2011 at 02:44 PM
I have hosted two events at this hotel. Both times they did an outstanding job. Menomonee Falls needs a decent hotel and this is it. The community must get behind it and support it with meetings and banquets held there as well as enjoying the restaurant. Recommend to friends and business people to stay there when in town. I have no financial interest in this other then keeping a vital interest stable.
MFalls Girl December 28, 2011 at 02:48 PM
I hope it stays in Business. a M. F. H. S. reunion is planned in 2012 at the Radisson
Keith Best December 28, 2011 at 03:48 PM
The taxpayers should not, I repeat NOT bailout this property. What's done is done. I only want to see the business succeed for it is much better then what it was. Location right next to the freeway is ideal.
Bucky December 28, 2011 at 04:24 PM
I agree ... Just thouhght that I'd throw a little extra frosting on the cake.
Bucky December 28, 2011 at 04:26 PM
So why didn't they call it the Dole No Tell Motel then ? Merry Christmas And Happy New Year Fuss !
Jim Kube December 28, 2011 at 06:17 PM
I wonder how many Packer playoff folks will book rooms?
Jeff Christensen December 28, 2011 at 06:21 PM
@ Keith Best - If financial investments are made with the approval of MF residents isn't that their business? And if those investments aren't approved by the residents won't those people who approved such decisions be held accountable by the voters of MF? Its called "local control"...butt out.
Keith Best December 28, 2011 at 07:44 PM
A Jeff Christensen---You Jeff, would probably be the last person I would take advice from. As I mentioned previously, I have hosted two events as a customer at this property. Don't tell me what to do when I have an interest here. However, I don't believe the taxpayers should bail them out, just as I believe Obama is spending to many tax $$ in D.C. It's a good thing we have a governor that knows well enough to cut spending.
Keith Best December 28, 2011 at 09:04 PM
@fussville- Let me answer you point blank. It was already done in my community with the downtown Waukesha Clarke Hotel.
left handed pitcher December 29, 2011 at 06:37 PM
Bucky thanks for sharing the fact that your city of Waukesha lent $2 million dollars on a terrible idea. This is $18million dollars that was borrowed on a building that is know worth less than $5million dollars on the tax rolls. How does someone who is borrowing money at the village board no do their due dilligence on something like this and see it for what it is worth. While many of you in Menomonee Falls do not like your former village president, if you look at his blog it looks like he did you all a favor and found out the information that all of the village board members should have been privy to if they would have done their homework. And if they wanted to place a bet on a dead horse why not only loan the corporation enough money to remodel the damn hotel. Based on what I have read I can only come up with about $10 million dollars that the partners needed even paying off old creditors. So the real question is where is the other $8 million and where did it go?
MFalls Girl December 29, 2011 at 10:28 PM
does anyone know other businesses that received loans?
Carl Engelking December 29, 2011 at 10:33 PM
MF Girl, that is something I am going to investigate.
ChuckMenoFalls December 30, 2011 at 02:39 AM
I think the hotel has an opportunity to be profitable for one week in 2013 - during the HD 110th celebration. Other than that consideration, and frankly, even with it - I still have no idea how the private money was justified, let alone the public monies. I have no idea how the hotel will draw enough revenue to meet its operating costs, aside from paying taxes and repaying the village tax payers. The building has been decorated nicely, but sticks out like a sore thumb given the horrible location. If I'm going to stay in a hotel in a dumpy area, why not stay in the hampton inn a few miles down the road? At least it has a strip club and restaurants nearby. It's also a lot closer and easier access to Kohls. Which leads to a more important point. We all know of the rumblings that Kohls is considering a departure, perhaps to Milwaukee. Instead of wasting $18M on a hotel with a very negative risk/reward ratio, I suggest the village board keep its focus, and our tax dollars, directed towards areas of greater risk and substantially greater reward.
Vicki December 30, 2011 at 06:01 AM
I agree, this hotel needs support. All this negativity only scares business groups and weddings from booking their hotel and banquet rooms. The previous building was such an eyesore. You could see the empty shell of the building from the freeway, what a bad sight to see when entering the Falls. We should support and sell this hotel and restaurant just as we should support all the local businesses.
MFalls Girl December 30, 2011 at 02:27 PM
originally they talked about putting a nursing home there - would have been a better idea
Bucky January 05, 2012 at 02:37 AM
Thanks Fuss


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