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HomeMy WebLinkAboutMinutes 02/10/2003 CALL TO ORDER: ROLL CALL: Approval of Minutes We1come of New Members Cascadia Funding Request LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington February 10, 2003 Councilman Campbell called the meeting of the Lodging Tax Advisory Committee to order at 3 :05 p.m. Members Present: Councilman Campbell, Councilmember Rogers, Carol Griffith, Patty Hannah, Bob Harbick, Jack Harmon, Michael Luehrs, Dave Neupert, and Bill Rinehart. Members Absent: Jim Haguewood and Steve Oliver. Staff Present: Economic Development Director Smith, Clerk Upton, and Recreation Services Manager Cole. Others Present: Brenda Hanrahan, Tony Griffith, Dick Goodman, John Platt, Russ Veenema, Gary Braaten, and Maureen Pfaff. Approval of Minutes: Bill Rinehart moved to approve the Lodging Tax Advisory Committee minutes of December 12, 2002. The motion was seconded by Carol Griffith and carried unanimously. Welcome of New Members: Councilman Campbell extended a welcome to the two new members of the Lodging Tax Advisory Committee: Dave Neupert as the Chamber of Commerce representative and Michael Luehrs from the Red Lion. Representatives of the Board of Directors of the Cascadia Center for the Performing and Literary Arts joined the meeting. Gary Braaten, President, and Maureen Pfaff, Secretary, were introduced, after which the committee members introduced themselves. Cascadia Funding Request: Economic Development Director Smith reviewed the Cascadia funding request submitted to the Lodging Tax Advisory Committee in December, 2002, in the amount of$88,400. No action was taken at that time, and it was agreed that the request should again be brought before the committee for consideration. The original request included the amount of $50,000 for Rise Alaska in funding the rewriting and professional articulation of Cascadia's business plan. Mr. Smith indicated that Cascadia submitted an additional letter in January, requesting $50,000 for the development of a business plan, to include feasibility studies. The remainder of the previous funding request was dismissed. Mr. Braaten advised the committee that, in order for Cascadia to be considered by investors, there is a need to complete the business plan and feasibility study. He noted that the investors are looking for a show of community support. In reviewing the elements that need to be completed, Mr. Braaten indicated there is a need to hire a consultant to help with the business plan and business analysis. He then reviewed the formation of the Cascadia group, the involvement and interest level of the Board members, and the fact that Emily Chadwick and Rick Porter are no longer serving on the Board. Mr. Braaten shared the Cascadia mission statement, emphasizing the vision of enhancing Port Angeles without competing with other existing ventures. They hope to put "heads in beds" because of the conference facilities, and Ms. Pfaff indicated the business plan will help them focus on the elements that can be sustained in the facility. -1- LODGiNG TAX ADVISORY COMMITTEE February 10, 2003 Cascadia Funding Request (Cant' d) Councilman Campbell felt that Cascadia had done a wonderful job of envisioning the possibilities; however, he noted that the entire package is so large that it is difficult to fully embrace the scope of such a huge project. He queried as to whether there weren't enough resources in the group to determine what could realistically be included in the facility. Understanding that Cascadia would likely need financial help in the future, he suggested it may be premature for lodging tax funds. Further, Councilman Campbell suggested it would be helpful to sell the idea to the community through the various organizations, after which the granting of funds could be better supported. Lengthy discussion followed, and individual committee members shared their views on the funding request. Bill Rinehart pointed out thatthe RCWs may not allow the granting of funds for purposes of a feasibility study. Tim Smith clarified the types of expenses allowed with lodging tax funds, and he felt a feasibility study for a performing arts center may be permitted. Ms. Pfaff noted the center would be a multi-purpose facility for convention use. When asked by Carol Griffith if Cascadia currently has financial backing, Mr. Braaten indicated there are parties that are very interested but they have asked for a sustainable business plan. He shared Cascadia's interest in partnering with other entities in Port Angeles to make certain the funds are spent appropriately. In addition, Ms. Pfaff indicated Cascadia is planning a mailing to the community to solicit support in the form of donations and to seek community input as to what should be included in the center. Russ Veenema asked for clarification as to whether Cascadia is trying to identify what is needed or to confirm what is already being proposed. Mr. Braaten responded it is both, and he and Ms. Pfaff explained the need to plan for what Cascadia can grow into, thus the need for the consultant. Local people have not built anything ofthis scale, and Mr. Braaten felt it imperative to have assistance in focusing on the appropriate direction to take. Dave Neupert asked for examples of facilities to which this one may be compared, and Mr. Braaten indicated there were none he could cite at this time. Tim Smith directed attention to some information on Rise Alaska that he garnered from the Internet, copies of which he distributed to the committee members. The information contained a list of clients and associated projects. Patty Hannah asked about a budget for the feasibility study, and Mr. Braaten indicated this would be a combination feasibility study and business plan. The consultant would also be able to provide assistance in fund-raising for endowments, as well as building the project. Bob Harbick returned to the matter of whether the funding of a feasibility study is an appropriate use of lodging tax funds, explaining the past uses of those tax funds in the community. He inquired as to whether the funds for the study could be obtained elsewhere and the lodging tax funds used in another fashion as support for the project. Mr. Braaten indicated that Cascadia would seek support in the conununity, and he noted that the project will be built; it is just in the phase of defining what will ultimately be built. Michael Luehrs stated this is a noble and exciting project, but he agreed that lodging tax funds are not appropriate for this particular component of the project. Once built, there are funds that could help promote and market the activities in the facility. Bill Rinehart also spoke in support of the project but he, too, agreed that funding for the feasibility study would be inappropriate. Lengthy discussion ensued, and Tim Smith suggested it would be helpful for the consultants to provide a scope of work that would help identify those areas that could be funded with lodging taxes. He felt the committee would be willing to fund a portion of the project where it is obvious that an increase in tourism will result. Mr. Braaten emphasized the need to seek outside input in order to obtain credibility for the project, and he acknowledged that it would be helpful to sit down with Rise Alaska to identify the scope of work so that a contract could be entered into for the deliverables. Councilman Campbell indicated the community needs to see how a $60 million project would be fmanced and how it would be maintained. There is a need to have a comfort level in knowing whether the project is financially feasible. He indicated that, from the - 2 - LODGING TAX ADVISORY COMMITTEE February 10, 2003 Cascadia Funding Request (Cant' d) City's perspective, there is a need to identify the products that would be gained from the scope of work for the investment made. The City usually invests money in those projects where there is an assurance of some type of return on investment. He reiterated that strong support from community organizations would be helpful for the project. Bob Harbick felt it important that the City express its strong support for the project such that further funding can be leveraged by Cascadia. Councilmember Rogers further clarified the committee's position and offered suggestions as to other resources that may be available in the community, such as the County Opportunity Fund. Tim Smith pointed out that the Opportunity Fund has fairly well distanced itself from funding feasibility studies. Councilmember Rogers inquired as to whether a letter of support at this stage would be helpful, and she further urged an outreach for community support at this time. Patty Hannah related how funding and community support is assembled by groups participating in United Way, and she indicated it is extremely important to see something that is tangible. She, too, urged the Cascadia representatives to seek community support in tenns of using and supporting the center. Collaborative efforts can be significant in a project of this nature, especially in terms of giving the project credibility. Councilman Campbell indicated that, while the committee has concerns with fulfilling the funding request, there is obviously a great deal of support for the project being contemplated. Tim Smith was pleased to note that, because ofthe planning for this project, many of the performing arts groups have become engaged in a fashion that has not been experienced before. Councihnember Rogers suggested the SCORE counselors may be helpful on the project, as there afe many retired individuals with a great deal of business expertise who may be willing to assist in the first analysis. it was also suggested that Peninsula College may have some expertise available, and there may be some credit to be earned by providing assistance. Councilman Campbell urged Mr. Braaten and Ms. Pfaff to keep this committee advised as to how matters are progressing. Tim Smith urged them to identify the "take rate" once the programs and facilities have been identified, as this is a significant factor in the projected success of a venture of this type. The committee members further spoke in support of the Cascadia project. Chamber of Commerce Report Chamber of Commerce Report: Russ Veenema briefly reviewed the status of requests submitted for special events in 2003. He indicated that requests totaling approximately $58,000 were submitted, so the committee recommended a reduction of$IO,OOO in the Marketing Match Program in order to further fund the events. The goal is for the special events to help in economic development, as they have a potential of attracting thousands of people. Adjournrnent Adjournment: The meeting adjourned at 4:10 p.m. (HIJ 7 Orville Campbel , - 3 -