Loading...
HomeMy WebLinkAboutMinutes 10/23/2003 CALL TO ORDER: ROLL CALL: Approval of Minutes Oak Street Conference Center LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington October 23, 2003 Councilman Campbell called the meeting of the Lodging Tax Advisory Committee to order at 3:00 p.m. Members Present: Councilman Campbell, Councilmember Rogers, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, Michael Luehrs, Dave Neupert, Steve Oliver, and Bill Rinehart. Members Absent: Jack Harmon. Staff Present: Manager Quinn, Finance Director Ziomkowski, Parks & Recreation Director Connelly, Economic Development Director Smith, Clerk Upton, and Recreation Services Manager Cole. Others Present: John Goodman and Brian Gawley. Approval of Minutes: Michael Luehrs moved to approve the Lodging Tax Advisory Committee minutes of August 20, 2003, The motion was seconded by Bob Harbick and carried unanimously. Oak Street Conference Center: Councilman Campbell indicated that Michael Luehrs had suggested this meeting for the purpose of establishing some time lines in conjunction with the Oak Street Conference Center. Mr. Luehrs felt the City would not be well served to allow the project to proceed absent certain time parameters. To that end, Councilman Campbell advised the group that Randal Ehrn had been contacted and invited to attend this meeting; however, his schedule did not permit his attendance. He made a commitment to attend the next meeting of the Lodging Tax Advisory Committee. Councilman Campbell related that Mr. Ehrn had met with representatives ofthe City, at which time the City expressed the need to define a process for moving forward on the project expeditiously in order to see it come to completion. Mr. Ehm had submitted a proposal on submitting regular status reports to the City, and Councilman Campbell summarized the proposal, noting that September 4, 2004, is the target date for getting everything in line for the project. Mr. Ehrn had expressed hope that construction could begin during the spring of 2004. He had projected the submission of monthly status reports on financing, as well as all other matters referencing progress for the Conference Center and Hotel. Further, Mr. Ehm is in the process of updating the pro fonna, since there have been a number of changes. It is expected the City will be able to view the pro forma in the next month or two. Mr. Ehm plans to proceed with construction drawings for the building permit in order to proceed in the spring construction period of 2004. He expressed his plan to move forward in obtaining all of the necessary permits to construct the facility, and he plans to get everything in place with an agreement with the City in order to dovetail with the downtown and City requirements. Mr. Smith had asked Mr. Ehrn to submit his proposal regarding progress reports in writing, which resulted in a letter of October 22,2003, copies of which were distributed to the membership at this time. Mr. Smith reviewed the letter, noting that Mr. Ehm -1- LODGING TAX ADVISORY COMMITTEE October 23, 2003 Oak Street Conference Center (Cont'd) planned to document his progress in monthly reports to the City, which should put some parameters around the entire project. Discussion followed, and Bob Harbick felt some of the work should have been completed by now and it appeared Mr. Ehm was starting over. Mr. Harbick also felt the proposed time line was unreasonable. Bill Rinehart indicated that, with the delay of the lawsuit, the plans must now be finalized. What was submitted earlier was only a conceptual design, and Mr. Rinehart explained the process for drawings, permits, and then fmancing. Mr. Smith clarified that Randal Ehm had generated [mancial interest, but that was all pending the lawsuit. He is now in a position to Darrow the field on his options regarding financing Also, at the City's request, Mr. Ehm agreed to go forward with engineering and architectural, in spite of whether or not he has financing. Discussion and debate followed, and Jim Haguewood felt that March 28'h is a key date, as it represents the first benchmark for Mr. Ehm to invest approximately $14,000 for permits. Bill Rinehart estimated that Mr. Ehm would expend over $350,000 in plans and engineering. Steve Oliver added that, in order to obtain a building permit, Mr. Ehm must have control of the property either through ownership or permission to proceed. Manager Quinn indicated that prior discussions were held on the proposed dates, and they didn't seem unreasonable in terms of the magnitude of the project. Carol Griffith sought clarification as to what must be completed by March 28'", and Councilmember Rogers responded that all drawings must be complete, with environmental impacts addressed, before a building permit can be obtained. Jim Haguewood emphasized that Mr. Ehm must begin construction by September 4'h and, to meet that deadline, one of the benchmarks is that he would have a building permit by March 28'h Councilman Campbell indicated it would not be wise to wait until March 28'" to find out whether or not a building pennit was obtained, which is why the status reports are being requested. Patty Hannah felt the benchmark dates should be accepted; however, it should be understood that there would be consequences if the dates aren't met. Further discussion and debate followed, and Bill Rinehart clarified the process in that an appraisal of the project must be completed prior to the commitment of financing. Tim Smith suggested that Randal Ehm's proposal be accepted with a few modifications, one specifying there is an expectation that the building permit application would be completed in full and submitted no later than March 28, plus the City could reserve the right to proceed in another direction should the complete application not be submitted by March 28'h Following further discussion, Jim Haguewood moved to reserve the right to withdraw lodging funds if the March 28'h date is not met. The motion was seconded by Bill Rinehart. Dave Neupert felt the motion would address Patty Hannah's concerns, and he indicated he would like to see a progress report added to the other reports on the issue of development and submission ofthe building permit. He felt it would be helpful for Mr. Ehm to join this group for a meeting, and Councilman Campbell noted that Mr. Ehm had already agreed to a meeting with the committee. Bill Rinehart moved to amend the motion to change the date to September 4. The motion was seconded by Steve Oliver. Discussion followed, and Bill Rinehart felt that financial support could be withdrawn if work hasn't started by that date. Dave Neupert moved to amend the motion to secure monthly progress reports with information to assure Building Permit applications will be filed no later than March 28, The motion was seconded by Bill Rinehart. Discussion followed, and Councilman Campbell reviewed the main motion, as well as the two amendments. Michael Luehrs moved to amend the motion to reserve the right to pursue other options. The motion died for lack of a second. A vote was taken on the first amendment, to change the date to September 4, which carried by a majority vote, with Carol Griffith and Michael Luehrs voting in opposition. - 2- LODGING TAX ADVISORY COMMITTEE October 23, 2003 Oak Street Conference Center (Cont'd) A vote was taken on the second amendment, to secure monthly progress reports to assure Building Permit applications will be filed no later than March 28, which carried unanimously. A vote was then taken on the main motion, to reserve the right to withdraw lodging funds if the September 4 date is not met, and to secure monthly progress reports to assure Building Permit applications will be filed no later than March 28. The motion carried unanimously. Next Meeting Next Meeting: In keeping with Mr. Ehm's conunitment to provide progress reports every 60 days, beginning December 15, 2003, it was agreed that the next meeting will be held on Monday, December 15.2003, at 3:00 p.m. The next meeting would then be held mid-February, 2004. Adjournrnent Adjournment: 1 There being no further business, the meeting adjourned at 4: 10 p.rn. ;1 ~ &~~..{)d:o^ Becky J. U , Cl ClerK J - 3-