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HomeMy WebLinkAboutMinutes 10/24/2001 4543 CITY COUNCIL SPECIAL MEETING in Joint Session with the Commissioners of the Port of Port Angeles Port Angeles, Washington October 24, 2001 CALL TO ORDER - Mayor Doyle called the special meeting of the Port Angeles City Council to order at REGULAR MEETING: 6:30 p.m. Port Commissioner Wand then called the special meeting of the Commissioners of the Port of Port Angeles to order. ROLL CALL: Members Present: Mayor Doyle, Councilmembers Hulett, Campbell, Erickson, McKeown, Wiggins, and Williams. Members Absent: None. Staff Present: Manager Quinn, Attorney Knutson, Clerk Upton, B. Collins, M. Connelly, Y. Ziomkowski, and T. Smith. Port Commissioners Present: Commissioners Waud, Beckman, and Bell. Port Staff Present: C. Boddy, D. Hagiwara, P. Deja, and C. Shuck. Public Present: L. Perrizo, S. Buck, T. Beil, J. Haguewood, K. Raogers, T. Bihn, and many others who did not sign the attendance roster. PLEDGE OF The Pledge of Allegiance to the Flag was led by Mayor Doyle. ALLEGIANCE: Conference Center Mayor Doyle welcomed those present, noting the purpose of this special meeting was Proposals to hear presentations on the two proposals submitted for a Conference Center in Port Angeles. Economic Development Director Smith made a PowerPoint presentatioh, summarizing the history of past conference center efforts, originating with a City/County partnership in the early 1980s. Various efforts over the years have not come to fruition, and Director Smith reviewed an incentive recommended by the Lodging Tax Advisory Committee for $100,000 per year in lodging tax funds to be set aside for twenty years to formulate a public/private partnership. The City and Port have entered into an agreement whereby the City would have non-exclusive marketing rights for the Oak Street property. Director Smith also summarized preliminary discussions underway with DNR concerning a potential land swap as relates to the construction of a conference center. Reviewing the process thus far in issuing Requests for Proposals, Director Smith indicated two respondents were present this evening to discuss their proposals submitted. Director Smith advised those present of the proposal review process that will be undertaken in the upcoming weeks, and he welcomed the appointment of Port staff -1- 4544 CITY COUNCIL SPECIAL MEETING October 24, 2001 Conference Center representatives to the Proposal Review Committee. The Proposal Review Committee Proposals (Cont'd) will formulate a recommendation to be forwarded to the City's Lodging Tax Advisory Committee, as well as the Downtown Forward Executive Committee. The recommendation forthcoming from those committees will then be passed on to the City Council and the Port of Port Angeles for consideration. Director Smith indicated the proposals will be evaluated on the following criteria: compliance with facilities requirements, compliance with operations requirements, degree to which proposal lirmts public financial commitment, level of private sector investment, compliance with Downtown Foiwvard plan, compliance with location criteria, and compliance with Washington State laws. Director Smith then introduced Randal Ehm of EHM Architecture, who began by expressing interest in the development of the Port Angeles Conference Center and by describing his company which provides modular construction services, utilizing a design/build approach with national contractors. In conjunction with a PowerPoint presentation, Mr. Ehm described the Quinault Project, a development incorporating modular construction, and listed the companies with whom his firm is currently doing business, emphasizing the availability of product lines and streamlined construction expectations. He then described the Six Continent Hotels/Holiday Inn projects and stressed the importance of their intemational reservation system, stating that this feature will be an adjunct to increasing lodging tax revenues, thus allowing the City to recap its initial investment in such a project. In terms of management, marketing, and operation of the facility, Ehm Architecture has invited Interbank Brener to manage and operate the hotel on behalf of Holiday at the Pier. The Developer desires to lease the restaurant and the Conference Center to the City in an effort to protect the public investment. Because the conference spaces are .incorporated into the design of the building, the question of protecting the public interest without having a separate facility would be addressed by lease agreements. The lease would give the City some ownership and would facilitate City involvement. Six Continent Hotels will offer its backing and marketing support to the venture and will seek to involve the Chamber of Commerce, the North Olympic Peninsula Visitor and Convention Bureau or both in operation and marketing. In addition, Ehm Architecture and MMP will assist in the facility marketing effort to seek conference groups and is also interested in promoting and having access to the adjacent pier. Maritime and Pleasure Craft could visit the facility with an expanded pier; negotiations involving this aspect would, however, be separate. Mr. Ehm broached the parking issues, recognizing the questions regarding the number of parking spaces available with the proposal. The count is somewhat deficient, but the calculation assumes that not all the guests in the hotel are in the conference space at the same time. Shared parking, common in metropolitan areas, is a consideration in this regard. In negotiations with one of the adjacent properties, Ehm Architecture would provide 356 spaces and, in the event that this issue is non-negotiable, they would lease adjacent properties, if necessary and to the extent that it is financially viable. In keeping with the idea of community involvement, Mr. Ehm stated his commitment to mentorship programs and would invite local young people expressing interest in the environmental design profession and in construction to participate in this project. The design of the facility, as shown in the presentation, was based on a prototype provided by Holiday Inn. The site would be set back from the pier and the promenade and would suggest diagonal parking along the street frontage to help with the ferry uses. The restaurant, envisioned at 4,000 sq. ft., would seat approximately 125 and 40-50 in the adjacent bar. The conference spaces were expanded beyond the initial prototype in response to requests made by the Port Angeles Business Association. The building -2- CITY COUNCIL SPECIAL MEETING 4545 October 24, 2001 Conference Center would be about 12,000 sq. ft., and, with parking reconfiguration, an additional 2,000 Proposals (Cont'd) sq. ft. could be added. The facade would incorporate wood siding, reminiscent of the craftsmanship of the Northwest, and stone veneers. Financial management would involve the Developer seeking to utilize a $100,000 annual cash subsidy from the City, as well as Tax Increment Financing for offsite improvements to the street and pier, and potentially for management or operation of the Conference Center. Finishing dates, originally projected for the third quarter of 2002, could be moved back as EHM is available to begin work immediately. The firm also seeks to negotiate for possible establishment of a Public Facilities District, if practical, to help offset development costs and losses projected during the ramp-up period. As a vital component of the Downtown Redevelopment Master Plan, EHM Architecture feels the project is consistent with the City's goals; that the involvement of local business and participation of local youth are a strength and a means of protecting the public interest; and they are committed to a long-term relationship with the City. They are interested not only in a conference center/hotel and restaurant development project, but feel they are investing in Port Angeles. Following Mr. Ehm's presentation, Councilman Campbell inquired as to whether the facility envisioned would equate to the quality of the Quinault facility, and Mr. Ehm responded the Quinault facility would typify his project in terms of quality of construction and utilization of the modular building design. He offered to facilitate a tour for the Council. Commissioner Waud commented on the idea of a destination resort in an area which has three occupationally historical backgrounds: logging, maritime, and tribal aspects. Mr. Ehm responded that he was already in pursuit of historical themes along those lines. Mayor Doyle asked which of the Holiday Inns would be located in Port Angeles, and Mr. Ehm explained that this proposal is Holiday Select, adding that the Select and Resort categories are at the same quality level, the highest level that Holiday Inn achieves. Following the Mayor's second question, Mr. Ehm explained that this facility would be a four-story structure with 155 rooms whose costs would be consistent with market prices for the hotel industry. Following a discussion regarding the expansion of the facility in square footage, Mr. Ehm's meeting with the Visitor & Convention Bureau, the Port Angeles Business Association, and the restaurant's involvement with the conference center, Mayor Doyle asked Director Smith to introduce the second speaker. Darrell Vange, Ravenhurst Development, complimented Mr. Ehm on his presentation and expressed his encouragement of the development. He then introduced his team members Bill Fuller of Fuller Sears Architects, and Michael Loehers and Debbie Atwell with the~Red Lion. Commenting on a collective vision for the Port Angeles Downtown area, Mr. Vange expressed the view of maintaining the area as a vibrant, pedestrian friendly environment. Because tourism is a key issue, the idea of gateways, pathways, and intersections is important for visitors. The concentration for a conference center should focus on new businesses and new economic engines to bring people to the downtown area-not only for the four-month summer season, but for the rest of the year as well. Ravenhurst Development, after researching the feasibility of running and maintaining conference centers, suggests that a facility with a 5,000 sq. ft. main hall, breakout space, and a reception area, would catch the core of the conference market and would be the most feasible economically. Mr. Vange stressed three challenges: 1) building on existing business so that the center would not become an economic burden to the -3- 4546 CITY COUNCIL SPECIAL MEETING October 24, 2001 Conference Center community; 2) bringing more business into the City in order to strengthen the Proposals (Conk'd) downtown core; and 3) revitalizing The Landing to become the cornerstone of the waterfront. To meet these challenges, Mr. Vange suggested that Ravenhurst Development purchase The Landing from the Port of Port Angeles, redevelop it in a fashion using the second floor as a conference center, and upgrade the ground floor to redesign the parking areas and include retail properties. He then asked to Mr. Fuller to comment on the floor plans and how the program works. Using his firm's renovations of a Seattle pier as contrast, Mr. Fuller, via photos and architectural renderings, discussed ways in which The Landing could be improved to encompass a new facility by 1) removing the existing ramps and parking spaces, replacing it with sidewalks, trees, walkways; 2) creating more space for retail stores in the interior corridor; 3) modifying the stairways; and 4) extending the building out 14 feet on the second-floor level to incorporate the conference center. Mr. Vange followed the design presentation by summarizing the steps involved in this project and the time-lines involved, the financial aspects of redeveloping an area versus improving an existing structure, and issues of expenditures for conference centers which traditionally are not considered money makers. The proposed agreement with the Red Lion Hotel to provide marketing and operations management for the facility does project operational efficiency, and, rather than acquiring a new food service, attendees would be able to choose catering from existing restaurants, thereby spreading the wealth among existing businesses. Mr. Vange concluded with his support in this project which will be invigorating to the waterfront area, strengthen current businesses, and provide opportunity to bring in new business to the area. Mayor Doyle observed that, in this scenario, Ravenhurst would actually be serving as a landlord. Mr. Vange indicated that Ravenhurst would be interested in a lease arrangement for the conference center space. Additionally, there would need to be an operating agreement for the provision of operations and management. Director Smith then extended an invitation to the Port Commissioners to assign Port staff to the review committee. Commissioner Waud indicated Dave Hagiwara and Bill James would serve as the Port's representatives. Director Smith indicated there is one missing element in the due diligence, that being an appraisal of The Landing. Commissioner Waud noted there is a process for arriving at current value of the property. Positive comments were submitted c0nceming the partnership created between the City and the Port in reviewing these proposals. ADJOURNMENT: The meeting was adjourned at 8:10 p.m. Larry Do?~Mayor //*~ Becky J. Up~, ct~ Clef[ ' -- -4-