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HomeMy WebLinkAboutMinutes 03/02/2000 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Conference Center Report LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington March 2, 2000 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 4:05 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bayton, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, John McCullough, David Morris, and Steve Oliver. Members Absent: Clay Oakes. Staff Present: Economic Development Director Smith and Clerk Upton. Others Present: G. Olsen, R. Hert, and T. Woody. Councilman Wiggins opened the meeting by encouraging committee members to attend the upcoming Town Meeting to be held March 8, 5:30 p.m., at the Senior Center, to elicit public input on the matter of a convention center. The Lodging Tax Advisory Committee could then meet immediately following the Town Meeting to determine the Committee's position. He also reminded the Committee of a meeting scheduled for March 24, 2:00 p.m., at which time goals will be established. Conference Center Report: Tim Smith, with the use of the overhead projector, submitted to the committee a report on the proposed Conference Center. Tim reviewed the past history of efforts to develop a Port Angeles Convention Center, noting that discussions commenced in 19SI, with the concept of a City/County partnership. He identified some of the typical challenges to developing convention centers, to include fmancing, supply and demand, cost, timing, and governmental regulations. The major issue identified as to why past efforts have failed related to finances, and Tim cited the fact that private investment would have been too risky. Similarly, all public financing would have been too risky as well. He felt, therefore, a need to establish some strong public/private investment parameters. Although the proposal submitted by the Promus Corporation was no longer on the table, City staff felt it appropriate to thoroughly review the proposal as to its validity and its merits. The proposal was for the expansion of an existing meeting/lodging/dining facility and related infrastructure. Tim identified the various components of the proposal and the associated responsibilities of the public and private sectors. With the assistance of the North Olympic Peninsula Visitor & Convention Bureau and Lindbergh Architects, the different elements of the proposal were analyzed, market factors were studied, target groups were identified, and the expense and revenue projections were examined. Tim then reviewed for the Committee members the outcome of the studies conducted noting that, in many cases, the Promus proposal was within reasonable limits. Some additional infrastructure needs were identified, which resulted in a significant increase in estimated expenses. -1- LODGING TAX ADVISORY COMMITTEE March 2, 2000 Conference Center Report (Cont'd) Tim summarized some of the issues that would need to be addressed during negotiations, such as the public partner investment parameters mentioned earlier; the design and construction choices and balanced fmancial partnering; facility marketing; operations, and maintenance; and ownership andlor operation protection issues. One of the public options for financing would be to reduce allocations of lodging tax funds to some of the typical recipients and to reassign the funds to the conference center effort. Absent this type of commitment, there would be no cause to proceed further. Tim concluded by stating the recommendation that a copy of the City's review of the Promus proposal be forwarded to the General Manager of the Port Angeles Red Lion, together with a clear indication of the City's potential commitment to use some portion of the lodging tax proceeds generated by the Red Lion toward developing a convention center, as a foundation from which a potential public/private partnership in a facility development between Hilton Hotels and the City of Port Angeles might be explored further. Councilman Wiggins felt this Committee is in a position to give its blessing to this proposal and absent that type of endorsement, there would be no reason to proceed. Councilman Campbell agreed, noting that an endorsement from this group is necessary so that the City can move forward with negotiations on the proposal. Troy Woody advised the Committee that he had discussed this possibility with the Chief Executive Officer of the Red Lion who had shown interest in receiving a proposal and, if it pencils out, he would move it up the ladder in the Red Lion. Jim Haguewood felt the community has always been interested in partnering on a Convention Center, and this proposal has been the most reasonable received thus far. He expressed the opinion that the process needs to be started. Patty Hannah suggested that the proposal include information as to where the other public money would be generated whether it be through a bond issue, grant funds, and the like. Tim Smith opined this effort should involve lodging tax funds only. Discussion followed on such matters as Red Lion's ability to promote conventions, the use of lodging taxes as a source of revenue for a partnership, how many conference attendees can be accommodated, how much growth can be sustained, the size of groups to be marketed, as well as possible financing options. It was suggested that Finance Director Ziomkowski provide the Committee with projections as to what the payments might be on the part of the City. It was thought to be helpful to be able to review some different scenarios in this regard. Jim Haguewood cautioned the group that it is important to not under estimate the desired product, that being a convention center. He urged the group to produce the best product possible. Councilman Campbell felt it important to seek public input as to what would constitute a win-win situation for all concerned. He would like to hear why people might be opposed to a public/private partnership. It was felt emphasis must be placed on already successful public/private ventures. Discussion followed on the upcoming Town Meeting, with suggestions being made as to presentation style. After further discussion on the position the Committee might take, Steve Oliver moved that the Lodging Tax Advisory Committee endorse the concept of a pnbliclprivate partnership to develop a convention center funded, in part, by lodging tax revenues. The motion was seconded by Patty Hannah and carried unanimously. - 2- LODGING TAX ADVISORY COMMITTEE March 2, 2000 ADJOURNMENT: The meeting adjourned at 5: 15 p.m. ~~</t~~~ ~ j)O"Q,~ -L1ftD^ ,/ Glenn Wiggins, Chair ~ - Becky J. U ,. y Clerk - .~ - 3 '