Cedar Rapids’ plan to ‘start all over’ on management of venues sends Schoenike packing

CEDAR RAPIDS - Scott Schoenike, who has directed the operation of three city-owned entertainment venues here the last four years for management firm VenuWorks, is leaving to head up the firm's operation of a new arena in Evansville, Ind.

The 39-year-old Schoenike's departure makes perfect sense because of the “uncertainty” surrounding the management of the city of Cedar Rapids' venues, Patrick DePalma, chairman of the city's Five Seasons Facilities Commission, said Wednesday.

John Frew, the project manager for the city's $100-million-plus Convention Complex and hotel renovation project, said as much on Wednesday, noting that the city cannot guarantee that VenuWorks, the Ames-based management firm, will end up running any part of the hotel, new convention center or renovated U.S. Cellular Center once the project is complete in two years.

“It's a great opportunity for Scott and a beautiful building,” Frew said of Schoenike's move to the Evansville Arena, slated to open later this year. “ … There were no guarantees that VenuWorks would be the operator (in Cedar Rapids). And we lost him.”

In the days ahead, Frew said the city is expected to seek requests for qualifications from management firms with the idea to focus on firms with experience in hotels and convention centers. Teams of firms may make proposals to cover the management of the hotel, convention center and arena, and VenuWorks may be part of one of the teams, Frew said.

Frew, a principal at Frew Nations Group, said the thought is that a firm that operates the hotel and convention center together can turn a profit and so generate money to pay off the debt on the construction and renovation project.

He said his firm's recommendation is for the city to start with “a clean sheet of paper” so that companies submitting their qualifications aren't forced to include in their plans the existing city management contract with VenuWorks. The city's contract with VenuWorks, which runs through June 30, 2013, can be ended with six-months notice, the facilities commission's DePalma noted.

“VenuWorks knows that they are going to have to compete for this business,” Frew said. “And it's only fair to tell them that.”

VenuWorks currently manages the city's U.S. Cellular Center arena, which will close for renovation in August, the Paramount Theatre, closed since the 2008 flood and awaiting renovation, and the Ice Arena.

Schoenike came to Cedar Rapids for VenuWorks in March 2007 after a three-year stint running the privately owned DeltaPlex Entertainment & Expo Center in Grand Rapids, Mich. Schoenike turned a $260,000 annual loss into a $380,000 annual profit at that facility, the Five Seasons Facilities Commission said at the time.

The commission's DePalma said Schoenike had success in Cedar Rapids. He said the city's U.S. Cellular Center arena, which can attract events for 5,000 to 7,000 people, can't compete with newer, bigger venues in Des Moines and the Quad Cities. But he said Schoenike did a good job of finding acts to fit the Cedar Rapids market.

“I understand he wanted some security going forward,” DePalma said of Schoenike's decision to take the Evansville position. “I feel sorry he's going, but I understand why he is.”

The new Evansville Arena where he is headed will hold crowds up to 11,000. It will be home to hockey, basketball and entertainment events.

According to the 2010 Census, Evansville's population is 117,429, Cedar Rapids', 126,326.

Neither Schoenike nor Steve Peters, VenuWorks president, returned calls on Wednesday. Frew said Schoenike's last day in Cedar Rapids is Friday.

VenuWorks' Gene Felling will assume the duties of executive director in Cedar Rapids while continuing with his current role as VenuWorks Western Region vice president.