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103100 jtm JOINT WORK SESSION WITH SANFORD CITY COMMISSION OCTOBER 31, 2000 Present: Chairman Carlton Henley (District 4) Vice Chairman Grant Maloy (District 1) (Late) Commissioner Randy Morris (District 2) Commissioner Dick Van Der Weide (District 3) Commissioner Daryl McLain (District 5) Mayor Larry Dale Velma Williams, Sanford Commission Randy Jones, Sanford Commission Brad Lessard, Sanford Commission Herbert Eckstein, Sanford Commission Walter Padgett, TDC Russell Hauck, TDC Penny Leffel, TDC Bill Buret, TDC Tom Siegfried, TDC Cindy Gennel, TDC Helen Stairs, TDC County Manager Kevin Grace County Attorney Robert McMillan Tony VanDerworp, Sanford City Manager DCM Jim Marino DCM Frances Chandler Tourism Director Jack Wert Cindy Coto Deputy Clerk Sandy McCann The Press The meeting was called to order at 3: 35 p.m. Chairman Henley welcomed both the members of the City of Sanford Commission and the members of the Tourist Development Council. Commissioner Grant Maloy entered the meeting at this time. HISTORICAL OVERVIEW David Darcey, Real Estate Research Consultants, Inc. (RERC) , addressed the Board to review the history of the research efforts of RERC as tasked by the County, stating the original market and financial analysis and site area analysis were conducted in 1994. Copies of slides were received and filed. He also reviewed the results of their earlier efforts. He advised that in 1995/96 the County prepared an RFP/RFQ. They 1 received two responses Pizzuti Company and Trammel Crow Company. The County selected Pizzuti and authorized negotiations; however, no contract resulted from these negotiations. He said in 1997, RERC conducted an update of the or~ginal 1994 study. He discussed the results of the 1997 update, which included the following options: Convention Center; Multi-Use Facility; and Conference Center. Option # 3 - Conference Center with meeting space of 10,000 to 12,000 square feet, amphitheater seating for 200 to 225, and multi-use space of 50,000 square feet, was selected. PRESENTATION OF CITY OF SANFORD PROPOSAL Don Hunter, Hunter Interests Inc., addressed the Board to advise his assignment from the City of Sanford was to evaluate the market and financial feasibility of a conference center on the downtown Sanford lakefront property. He said that after research, he has concluded that there are no true conference centers in the Orlando metropolitan area. He stated the downtown Sanford conference center would serve primarily the 1-4 market and the numerous state-headquartered associations. He recommended a 42,000 square foot conference center with a mix of spaces including a ballroom, training rooms and a training amphitheater. He advised utilization rates are estimated at 22,000 guest days in year one, stabilizing at 29,000 in year four. Net operating income of $30,000 to $40,000 per year would be realized after year four of operation. He also recommended a 300-room full service hotel with an al ternati ve for a 200-room boutique hotel. He explained that he is estimating capital costs of $105 per square foot for the conference center space. This investment will produce a basic, functional facility at an estimated cost of $4.5 million. , He said he purposely estimated the public sector costs near the low end because he has been successful in securing corporate commitments from local 2 companies through lease arrangement to partially fund furnishings and equipment costs in local conference centers they use. He said he also has been successful in securing contributions of a civic nature. He displayed slides of similar fa~ilitieshe has been involved with. Discussion ensued. Deputy Clerk Sandy McCann was replaced by Deputy Clerk Eva Roach at this time. Mr. Hunter continued reviewing the City of Sanford's proposal. City Commissioner Eckstein left the meeting at 5:05 p.m. Mayor Larry Dale left the meeting at 5:07 p.m. City Commissioner Eckstein and Mayor Dale reentered the meeting at 5:12 p.m. Mr. Hunter discussed with Chairman Henley the size of the site, open space and parking issues. Commissioner Morris stated he has to leave at this time, but will review the tape of the remaining portion of the meeting. Chairman Henley stated the Board will not be making any decisions today since this is a work session. Upon inquiry by Chairman Henley, Jack Wert, Tourism Director, advised the Tourism Development Council (TDC) has had some discussions on this issue but not in detail. Chairman Henley stated he would recommend that the BCC schedule a meeting to discuss and then give direction. 3 Commissioner Morris stated the TDC needs to review this and submit a recommendation. Those recommendations can be submitted to the Board during the second meeting in November or the first me~ting in December. Commissioner Morris left the meeting at 5:17 p.m. ANALYSIS OF CITY OF SANFORD'S PROPOSAL Mr. Darcey displayed and reviewed slides of the Sanford Conference Center Report prepared by Hunter Interest, Inc. He indicated that the total cost could be as much as $7.5 million. He reviewed slides showing the potential fiscal benefits and annual costs for a 300-room hotel/conference center; comparison of the Sanford Conference Center with the 1997 Feasibility Study; the square footage; and questions relating to the Conference Center and the 1997 Study. Commissioner Van Der Weide left the meeting at 5:25 p.m. Commissioner McLain left the meeting at 5:27 p.m. Ci ty Commissioner Velma Williams stated Sanford is the County Seat and it has an excellent waterfront development potential. She stated she would like to know why Sanford was ignored during the studies. She said she feels that the City of Sanford is being viewed as not having anything to offer. She stated she would like to know when the Board will embrace the fact that Sanford is a product of Seminole County and does have something to offer. She added she also would like to know what is the liabili ty of the Csmnty joining a partnership with the City on this project. 4 Commissioner Van Oer Weide reentered the meeting at 5:31 p.m. Russell Hauck, TOC, stated for future discussions, he feels the TOC needs to obtain one proposal with some options and not go baFk to three or four different proposals. Mr. Hunter stated he feels the best way to look at what the spin-off situation is going to be is to not do estimates but actual situations. Penny Leffel left the meeting at 5:37 p.m. Mr. Hauck responded to Mr. Hunter's comment rela ti ve to being suspicious of an 80,000 room night generation in the 1997 study. Mr. Hunter explained for Commissioner McLain the parking needs for the facility. Mayor Oale left the meeting at 5:40 p.m. and reentered the meeting at 5:44 p.m. FINANCIAL OVERVIEW Jack Wert displayed and reviewed slides of the Overall Impact of What this Project will have on the Tourism Market; What is Seen in the Northern Part of the County; and the kind of commitments in the Tourism budget. County Manager Kevin Grace and Commissioner McLain left the meeting at 5:45 p.m. Mr. Wert reviewed wpat the impact will be plugging $600,000 per year in the budget. He also reviewed slides of what the impact would be for a $400,000 annual commitment. 5 Tom Siegfried and Cindy Gennell discussed with Mr. Wert the zoo percentage and major factors. Mr 1 Wert reviewed possible solutions. He stated one solution would be to increase the hotel tax an additional 1%. That would generate about $600,000. Commissioner McLain and Mr. Grace reentered the meeting at 5:59 p.m. Mr. Wert stated another possibility is to reduce the commitment from $600,000 to $400,000 per year. That would ease the burden on the tourism tax fund. Another thing that could be done is to commit the tax revenue generated by the new hotel. CITY OF SANFORD SUMMARY Mayor Dale stated he would like to clear up some misconceptions that this is a Sanford proj ect. He stated it was Seminole County's, not the City of Sanford, idea to have a conference center in the County. He said an Ad Hoc Committee was appointed by the BCC and they felt that this is the number one site. He explained how this project came about. He stated the City would like the County staff and their staff to get together to come up wi th an RFP or RFQ process and to see if this is feasible. He stated he feels this project will be successful once they decide what they are going to do. He asked the Board to consider this seriously and follow through what the County has started. Upon inquiry by Commissioner Van Der Weide, Mr. Wert advised Orange County's TDC tax is 5%. , 6 . , Chairman Henley stated there are a number of issues that need to be discussed and both staffs need to determine what type of an agreement can be worked out. process. Discussion ensued relative to the Chairman Henley stated he feels the Toe needs to go back and digest what has been discussed today. He stated he is going to ask County staff to do the same thing. He added County staff needs to consider TDC's recommendations. Mr. Wert stated the TDC is not scheduled to meet in November. Their next meeting is scheduled for the second Thursday in December. Ms. Gennell stated if the Board is asking the TDC to make recommendations, it would be helpful to have staff's recommendations to look at so they can evaluate them. Mr. Hauck stated he feels the TDC should have a proposal to discuss, as they are not sure what they are debating. Mayor Dale stated he feels the BCC needs to decide whether they want a conference center, do they want it at this site and what do they think they want. He stated the TDC should then review the financial feasibility of this project. Commissioner Van Der Weide stated if both staffs work together in coming up with a solution, the BCC will be getting closer in making a decision. He stated there were a lot of questions brought up tonight and the Board needs to focus on what the possibili ties are and not drag it out. He said he believes there is a consensus that both sides want a conference center. 7 ~ ' I . Chairman Henley recommended that County staff study the issue and come back with a recommendation as to which would be the best proposal. Commissioner McLain recommended that the County staff work with the City staff and their consultants to submit a recommendation. Mr. Grace clarified that staff will bring this back to the Board and not wait for the TOC to meet. He stated staff will come back with a base-line decision as to whether the County wants a conference center and to determine if this is the site they want. Copy of newspaper article from The Roanoke Times re: the Conference Center of Roanoke, submitted by the Society for the Preservation of Fort Mellon Park was received and filed. The meeting was adjourned at 6:11 p.m. smler 8