HomeMy WebLinkAboutMinutes 04/18/2002
CALL TO ORDER:
ROLL CALL:
Approval of Minutes
Review ofEHM Due
Diligence Report - Hotel
and Conference Center
LODGING TAX ADVISORY COMMITTEE
Port Angeles, Washington
April 18, 2002
Councilman Campbell called the meeting of the Lodging Tax Advisory Committee to
order at 2:10 p.rn.
Members Present:
Councilman Campbell, Zoe Bay ton, Carol Griffith, Patty
Hannah, Bob Harbick, Jack Harmon, and Bill Rinehart.
Members Absent:
Karen Rogers, John Brewer, Jim Haguewood and Steve
Oliver.
Staff Present:
Manager Quinn, Economic Development Director Smith,
and Clerk Upton.
Others Present:
Dick Coram, John Platt, and Brian Gaw1ey.
Councilman Campbell opened the meeting with an introduction of Mr. Dick Coram,
who is associated with the Office of Trade and Economic Development and who was
involved in the Ocean Shores conference facility.
Approval of Minutes: Bill Rinehart moved to approve the minutes of the November
29 and December 17, meetings. The motion was seconded by Zoe Bay ton and
carried unanimously.
Review of EHM Due Diligence Report - Hotel and Conference Center: Councilman
Campbell reported that the Conference Center Proposal Review Committee met with
Randal Ehm to discuss the Due Diligence Report at which time certain areas needing
further work were identified.
,/ The committee felt that the Business Plan and the Marketing Plan look good,
but there is a need for a second opinion. The City is, therefore, seeking review
and input from The Chambers Group, which is a hospitality industry
consulting firm.
,/ Councilman Campbell noted that enviromnental permitting is on a tight
schedule, and Mr. Ehm would like to proceed immediately by working with
the Department of Community Development.
,/ Negotiations with the Port and the Department of Natural Resources are at a
stage where an agreement can be reached involving a trade for DNR land and
a purchase of the Port property on Oak Street.
,/ Parking was identified as needing further work, particularly in the area of
coordinating parking for the conference center and hotel with the parking
needs created by the Gateway project and other downtown development.
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LODGING TAX ADVISORY COMMITTEE
April 18, 2002
Review of EHM Due
Diligence Report - Hotel
and Conference Center
(Cont'd)
,/
The issue of when the frrstpayment of$IOO,OOO from the City should be made
was identified as needing further consideration. Randal Ehm has indicated he
would like payment up front, but the City must first determine when it can
legally make payment to ensure the City's investment is protected by a
physical facility. The City Attorney is following up on this particular issue.
,/ Another issue identified was whether Ehm has all of the financing necessary
to build the entire facility, which is something Mr. Ehm is pursuing at the
present time.
Councilinan Campbell indicated the review committee plans to meet again on Tuesday,
April 23", and it is hoped the input from The Chambers Group will be ready forreview.
The committee has, however, unanimously concluded that Ehm has substantially met
the due diligence requirements, and the endeavor should move forward in order to try
and resolve the remaining issues. The review conunittee has given a positive
endorsement of where the project is in terms of the established time line.
Councilman Campbell then invited discussion on the matter, and questions and answers
were forthcoming on such matters as the required parking (320 spaces) and the options
for fulfilling the requirements. The matter of necessary financing was considered, and
Tim Smith indicated attention can be focused on some of the issues while, at the same
time, Mr. Ehm continues to work on finalizing the entire financing issue.
Tim Smith distributed information concerning The Chambers Group. He then indicated
that, if resolution can be reached in the areas of parking and the marketing and business
plans, then the review team can proceed to some conclusion and recommendation in a
similar fashion as was used previously in terms of seeking committee and public input
prior to submission to the City Council. Input will be sought from the Lodging Tax
Advisory Committee, as well as the Downtown Forward Executive Committee. Mr.
Smith expressed the hope that agreement can be reached by the committees prior to
May 21 $\ perhaps in the form of a joint meeting.
The ensuing discussion centered around the validity of the occupancy projections, as
well as the need for more certain financial backing. It was suggested that the next
meeting be conducted injoint session with the review team and the Downtown Forward
Executive Committee. Additionally, it was suggested that individuals submit their
questions to Tim Smith ahead oftime in anticipation of that meeting. The group heard
from John Platt concerning his working knowledge of the Six Continents Hotels and
their strict construction code requirements that must be met in every facility.
Next Meeting
Next Meeting: The next meeting was set for Thursday, May 16,2002, at 2:00 p.rn., in
the City Council Chambers. The group was reminded to submit questions to Tim Smith
in advance of the meeting.
Adjournment
Adjournment: The meeting adjourned at 3:25 p.m.
&ll&:;;i.t{ b"~ UfmA-
Orville Campbell, Chair Becky 1. Upt Ci lerk
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