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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
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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.
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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.
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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.
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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%.
,
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. ,
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.
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~ '
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
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