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HomeMy WebLinkAboutMinutes 10/31/2002 CALL TO ORDER: ROLL CALL: Conference Center Marketing Plan LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington October 31, 2002 Councilman Campbell called the meeting of the Lodging Tax Advisory Committee to order at 3 :00 p.m. Members Present: Councilman Campbell, Zoe Bayton, John Brewer, Carol Griffith, Bob Harbick, Steve Oliver, and Bill Rinehart. Members Absent: Councilinember Rogers, Jim Haguewood, Patty Hannah, and Jack Harmon. Staff Present: Manager Quinn, Economic Development Director Smith, and Clerk Upton. Others Present: Jan Harbick, Dick Goodman, Brian Gawley, Tony Griffith, Michael Leuhers, and John Platt. Councilman Campbell stated the purpose of the meeting was to consider the marketing plan for the conference center, after which Economic Development Director Smith would submit a report concerning the proposed parking garage. Conference Center Marketing Plan: The committee members were informed that Messrs. John McCracken and Andy Olsen from The Chambers Group would be joining the meeting via conference call in order to share their views on the current, revised Marketing Plan submitted by Randal Ehm for the Conference Center. Councilman Campbell asked that the members obtain as much information as they may need in order to determine whether the Marketing Plan satisfies the City's requirements at this time and, further, whether the project can move forward to completion of a project appraisal, management agreement, franchise agreement, and proof offmancing. Tim Smith offered clarification in that acknowledgment of the Marketing Plan meeting City requirements does not mean the City is ready to transmit lodging tax funds to Mr. Ehm. Rather, such an acknowledgment would move the project forward, and the City could begin finalizing a contract for the payment of lodging taxes. Absent completion of the items listed above, lodging tax funds will not be paid. At this time, Messrs. McCracken and Olsen joined the meeting, and Tim Smith asked them to review the recently revised Marketing Plan in comparison to the previous plan issued. The two representatives of The Chambers Group indicated that, based on their review, it appeared that Mr. Ehm had addressed the issues they had identified as needing further attention. Although there will always be areas that can be improved upon in any marketing plan, they felt Mr. Ehm 's Marketing Plan is a "wrap" and that the City should move forward. Tim Smith asked what the next step would be if this committee were to acknowledge that the City's requirements have been met. Messrs. McCracken and Olsen indicated Mr. Ehm would then need to secure financing, affiliation and management contracts, and an appraisal. In response to an inquiry from Bill Rinehart, Messrs. McCracken and Olsen indicated they felt Mr. Ehm had, in fact, satisfied the City's due diligence requirements. Carol Griffith asked for an explanation from The Chambers Group as to what changed their -1- LODGING TAX ADVISORY COMMITTEE October 31, 2002 Conference Center Marketing Plan (Cont' d) position from the earlier Marketing Plan to this most recently revised plan. Messrs. McCracken and Olsen indicated there was nothing specific; however, they did note that Mr. Ehm had succeeded in referencing more specifically the marketing of the Conference Center as opposed to the hotel. Tim Smith asked how pivotal the group's acceptance of the Marketing Plan would be in relation to Mr. Ehm's ability to secure the final steps listed. The representatives of The Chambers Group felt the acceptance ofthe plan would be a start, but the City would likely want a sales and marketing plan in order to determine whether the developer and the future operator have a vision the same as that of the City and the community for the overall project. The Marketing Plan would not be pivotal in terms of financing, but certain information from the plan may be included in an appraisal. When asked by Mr. Smith as to how long it could take for Mr. Ehm to pull the remainder of the tasks together, Messrs. McCracken and Olsen felt it would be reasonable to establish a time line, as they have seen projects such as this take years to come together. In this particular instance, they felt the remaining items identified for the project could be accomplished in 3 - 4 months. They further expanded on the importance of the flag attached to the hotel, as well as the sequential nature of the financing, appraisal, and operation contracts. The committee members had no further questions, and Messrs. McCracken and Olsen were thanked for their input. In considering the approval of the Marketing Plan, Tim Smith suggested that a communication be sent to Mr. Ehmindicating the City's approval of the Marketing Plan and intent to provide the lodging tax funds contingent upon the other requirements being met. The communication could also include a draft contract for Mr. Elun's review. Additionally, Councilman Campbell pointed out it would be timely to establish a time frame for completion of the other requirements. Steve Oliver referenced the motion made at the June 5, 2002, meeting of the Lodging Tax Advisory Committee in which the committee determined the EhmArchitecture Due Diligence Response to be substantially complete and committed the Lodging Tax revenues to the project, pending receipt and approval of the project's Marketing Plan, Marketing Budget and Implementation Schedule. Therefore, at this time, Steve Oliver moved to approve the Project's Marketing Plan, Marketing Budget and Implementation Schedule. The motion was seconded by John Brewer and carried unanimously. Parking Garage Parking Garage: Tim Smith reported he was in receipt of a draft feasibility study from Ravenhurst Development for a parking garage. He noted the study is not specific to the Oak Street development, as it is unknown whether that particular project will be fully realized. There is a need to look at a parking garage from the standpoint of the Gateway project, because there will be a loss of parking because of that specific project. Mr. Smith indicated copies ofthe study have not been distributed but can be made available to the membership. In conjunction with the study, an assumption was made that an area would be selected in close proximity to the Oak Street project and the ferry terminal because of the tourists. A 350-space parking garage would recover the lost parking, plus there could be 150 spaces for the Oak Street development. Mr. Ehm has indicated he would like to put most of his parking in this facility. The projected cost for the garage, excluding land, is approximately $5.5 million for the 350 spaces, or$13,000-15.000per space. The cost projections will increase or decrease, depending on the final size. Mr. Smith discussed the possible sites for a parking garage, one being to the east of the Oak Street development, and the other could be located to the south of the development. Mr. Ehm favors property to the south. Lengthy discussion followed concerning the parking requirements for the hoteVconference center, and Manager Quinn indicated the ultimate number of spaces may not be determined for a while. He sUIIunarized input from the City Council on the possibility of the City not setting parking standards for developments. Tim Smith reviewed Mr. Ehm's desire to partner in the parking garage effort, and he will need to know the projected costs in order to proceed with the - 2- LODGING TAX ADVISORY COMMITTEE October 31, 2002 Parking Garage (Cont'd) financing package for the project. Mr. Smith reviewed the various financing options that may be pursued for the parking garage, noting it appears the garage could pay for itself. Mr. Smith reiterated the need for a time frame to be assigned to the Oak Street development, as efforts need to proceed on the parking garage because ofthe Gateway Project. Lengthy discussion followed, and Tim Smith felt that Randal Ehm should be able to set his own parameters on the time frame. He further discussed the communication to be sent to Mr. Ehm, and he suggested that Mr. Ehm should also be instructed to fmalize the acquisition of the property from the Port. Further discussion followed, and Mr. Smith agreed to forward a copy of the letter to the committee members. He noted that the Port Angeles Forward Executive Committee will be reviewing the parking garage feasibility study in the near future. Adjournment Adjournment: The meeting adjourned at 4:00 p.rn. &!ia&id{ ,I:,d}~ Uf1D^ Orville Campbell, Chair Becky J. U ,. y Clerk - 3-