Oct. 30–CHIPPEWA FALLS — While several new hotels are sprouting up along U.S. 53 between Eau Claire and Chippewa Falls, developer Brian Wogernese said he doesn't have any qualms about building one in downtown Chippewa Falls.

Wogernese said he didn't consider locating a four-floor, 45-room Cobblestone Hotel & Suites along the busy highway, saying he is confident the downtown location will fill a niche market.

The Chippewa Falls City Council agreed Tuesday to sell the vacant lot at 100 N. Bridge St. to Wogernese's group, WHG Cos., for $500,000. However, the city will provide $1.05 million in grants and tax increment financing district funds, offsetting the sale price. Hoffman is confident the TIF will be paid off in six to seven years.

Construction on the hotel should begin in January, with its opening scheduled for August 2016. It will include a restaurant, bar and swimming pool on the main floor and 15 hotel rooms on each of the top three floors.

Chippewa Falls Mayor Greg Hoffman said the hotel isn't necessarily competing with the newer hotels along U.S. 53.

"This is different than a typical hotel," Hoffman said. "(Wogernese) is trying to capture a different market. People want to have a downtown experience … My perception is this will draw a different type of clientele than the other hotels in the area."

Based on a state Department of Tourism analysis, the downtown hotel would have a $2.42 million annual economic impact on the city, Chippewa Falls Main Street director Teri Ouimette said.

If the hotel reaches a 60 percent occupancy rate, Department of Tourism statistics show the hotel would generate $1.1 million in annual lodging fees along with $86,000 in room tax collections. Hotel occupants are projected to spend $372,000 on retail purchases, $448,000 at restaurants, $229,000 on recreational activities and $270,000 on gas.

Additionally, the hotel is expected to employ 20 to 25 workers, Hoffman said.

"The business owners downtown are just abuzz about this," he said. "This will add such a different dimension to downtown."

Wogernese has a track record of successfully operating so-called "boutique" hotels elsewhere, having opened similar downtown hotels in Waverly, Iowa, and in Marquette, Iowa.

Ouimette said she believes the hotel can reach 60 percent occupancy. Downtown Chippewa Falls has enough attractions such as Leinenkugel's brewery, Irvine Park, the Heyde Center for the Arts and shopping outlets to attract visitors, she said.

Additionally, events such as Pure Water Days and the Northern Wisconsin State Fair will help fill the hotel, she said.

"We have a thriving downtown. It's the center of the community," she said.

Wogernese said currently there are 60 Cobblestone Hotels and another 12 are under construction.

The 15,000-square-foot Plaza building lot has sat empty since the building, also known as the former First National Bank, was torn down in March.

Hoffman said it was critical that the old bank was torn down because that greatly increased Wogernese's interest in the location. Wogernese, who had been in the city earlier this year, saw how busy the downtown was and realized the need for the hotel, Hoffman said.

"This (deal) all transpired in a little over two months," Hoffman said.

Contact: 715-723-0303, [email protected]