EFFINGHAM — Southside Hospitality on Wednesday announced its acquisition of the Thelma Keller Convention Center and the Holiday Inn adjoining it in partnership with real estate development company Admiral Parkway.
That announcement came the day after the Effingham City Council discussed the city’s purchase of the Thelma Keller Convention Center from its new owners.
In the short run, the deals mean the building will immediately begin undergoing renovations “designed to elevate the property,” according to a press release from Southside Hospitality. The convention center and hotel will remain fully operational with all existing and future bookings being honored during the transition.
In the long run, a larger convention is being planned.
“We plan to continue operating the current convention space for the next few years while developing a new, larger, state-of-the-art convention center just minutes from the existing facility,” Jim Schuette, President and CEO of Southside Hospitality, said in the release. “Planning is already well underway, and we look forward to sharing additional details as we work with the City of Effingham to shape a shared vision for this exciting new space.”
No formal action by the City of Effingham has been taken yet regarding a potential new convention center. However, City Administrator Steven Miller said a triple lease agreement between the city and the two companies under the name Effingham Hotel LLC could take effect. Admiral Parkway is the developer of the project and Southside Hospitality will run its daily operations. The city will own the future facility and lease its operations back to Effingham Hotel LLC, according to Miller.
“All I can say at this time is we are in discussions with the same party regarding a new hotel and convention center as well,” Miller said. “A lot of those details have not been ironed out yet.”
In an interview with the Effingham Daily News, Schuette expressed how he didn’t want to share too many details about the new convention center but said it will be a “much larger convention center,” that is intended to “accommodate not only current conventions that come to town, but some, as well, that go to some of the surrounding cities as far as St. Louis and Chicago.”
He added that the new location will not coexist with Effingham’s current facility and that the Thelma Keller Convention Center will eventually be redeveloped.
“The new convention center will be the only convention center that we have in Effingham,” Schuette said. “The reality is the convention center as it is, I think, has stood the test of time but it’s time for a new path forward.”
He declined to disclose the purchase price. Online property records list 1301 Avenue of Mid America as last being sold to DJK Enterprises, LLC in 2018 for $6,852,559.
City discusses purchase
Effingham City Council on Tuesday discussed the city’s potential purchase of the Thelma Keller Convention Center from Effingham Hotel LLC.
The two companies are currently proposing to sell their recent acquisition to the city of Effingham for $4 million. All five commissioners voiced support for the city to own the property, even though the documents are not yet finalized.
According to Miller, the purchase funds would be used to improve the Thelma Keller Convention Center. The city plans to also lease the building’s operations back to Effingham Hotel LLC, meaning the city would hold the title to the building while Southside Hospitality and Admiral Parkway would maintain day-to-day operations.
Miller said the companies will cover nearly all the costs of running the building, such as utilities, maintenance, insurance and other operating expenses. Property taxes are also still being discussed, according to Miller.
Commissioner Jake Niebrugge noted that almost all convention centers across the United States are owned by their cities, rather than a private company.
“The city doesn’t necessarily want to be in the business of operating the center, but having the ability to select and deselect an operator at will is very helpful,” Niebrugge said.
Other commissioners on the council voiced support for the potential acquisition, fearing they would lose city control over the Thelma Keller Convention Center.
“We would hate to lose the convention and have somebody come and tear it down,” said Commissioner Larry Micenheimer. “This is an important economic engine, and we control its destiny as the owners and ensure we have a convention center. It definitely is a draw to our community.”
Mayor Mike Schutzbach said the council recognizes the convention center’s importance.
“Not only getting, as they say, ‘heads in beds for overnight stays,’ but also the convention center is an economic tool for our city when it comes to folks coming for the convention center, possibly stopping for gas, stopping to eat food; it kind of has a domino effect economically for all of our businesses, and also for our citizens,” he said.
After discussion, the entire council favored moving forward with the potential acquisition. Miller said the city has met with Effingham Hotel LLC and has begun drafting contract documents for the purchase agreement. The council will bring the proposal back for further discussion.
Convention Center impact on Effingham
The Thelma Keller Convention Center opened its doors in 1988 and was founded by Chuck Keller, whose family owned the local Ramada Inn hotel franchise. Prior to designing the convention center, he had been involved in building the historic New York Biltmore Hotel that closed in 1981. He named the convention center after his mother.
Since then, the convention center has been owned by DJK Enterprises, a family-owned business formed by the Keller family. The facility has gathered people for events such as trade shows, weddings, the Effingham home builder show and craft shows. It has raised tourism money for the city of Effingham, assisting hotels, gas stations, restaurants and retail stores in the area, according to Thelma Keller Convention Center Director Patty Greene.
Although she didn’t have information regarding how much the Keller family sold the convention center for and why, she shared her thoughts on the building being under new ownership.
“In order to grow there needs to be change,” said Greene. “I really think that what we have coming is going to have a very positive impact on Effingham.”