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Caledonia hopes proposal for convention hotel at South Hills Country Club moves forward

By Michael Burke
Journal Times | Posted: Saturday, April 18, 2009 12:00 am

CALEDONIA - When Dan Hintz looks at South Hills Country Club, he sees an ideal development property - one that comes with a golf course.

Over the years, an intriguing development concept for the 18-hole course has occasionally surfaced: A convention hotel that would benefit from, and feed business to, the golf course.

Hintz, owner of Hintz Real Estate Development Co., 7108 Highway 38 - and now South Hills - is the person who could help make that happen. South Hills' previous owner, a California company, had been content to lease the course to the Jensen family, which runs the course.

But Hintz is in the game, after buying South Hills for $5.9 million, to make something happen. He claims that the 420-acre South Hills is the largest property adjacent to Interstate 94 between Chicago and

Milwaukee.

"I would love to see development going on around the existing golf course," Hintz said. "But we're not ruling out anything at this point."

In any case, South Hills remains very much in business for some time. Hintz said no development would occur this year under any circumstances, and any development would probably take at least two years.

The question of South Hills' future arose recently when Hintz and a consultant, Tom Quinn of Oak Creek, asked the Caledonia Village Board to extend Tax Increment Finance District No. 1. They wanted TIF No. 1 - created to foster the would-be Twelve Oaks development - broadened to include the rest of South Hills.

Earlier this week, the board decided not to enter into a predevelopment agreement that would extend the TIF. Village Administrator Tom

Lebak said the fact that no developer stands ready to help pay the costs, and lay out an exact plan, kept the Village Board sitting on its wallet.

"Typically you work with the developer," Lebak said. "The idea is not to have a generic plan …"

The cost of finishing the altered TIF could easily have exceeded $20,000, he said.

"You want me to help you, but you can't tell me what's going to be there," Village President Ron Coutts said.

Attractive concept

As a general concept, both Coutts and Lebak say they'd love to see a convention hotel built on the site.

"We're excited about it," Lebak said. "The concept is fantastic."

Coutts said people in the convention business say many companies would choose a self-contained, resort-like convention center over Las Vegas, for example. In the latter location, people tend to scatter after the business day.

But a business convention where everyone meets, eats, drinks and plays on site can foster bonding and exchange of ideas.

Hintz said the only conference golf hotels near the Milwaukee-Chicago corridor are in Lake Geneva and Kohler, respectively. But unlike South Hills, which is just south of Highway K, they don't sit right along Interstate 94.

Hintz said whatever South Hills eventually becomes will be driven by the market - and he doesn't see any demand for housing.

"Ideally, a nice, big, 300-room convention center and restaurant, a lot of money (would get) spent there," he said.

Coutts pointed out that room taxes from a hotel - even though the majority of room taxes go to recruit tourists and visitors - would create a nice revenue stream for

the village.

He also said a convention hotel could help interest businesspeople in Caledonia as a possible future place to put a company.

For this year, however, South Hills will remain a golf course and country club. In the future, Hintz hopes those golf links will provide a great foundation for an entire

development.

"This economy has got me so confused," he said. People are investing in the stock market again, Hintz said. But for now, he doesn't see anyone who wants to invest in a hotel.