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103100 Joint City County Meeting MINUTES City Commission, Sanford, Florida 3:30 p.m. Joint City/County Meeting October 31! 2000 The City Commission of the City of Sanford, Florida met in Joint Work Session with the Seminole County Board of County Commissioners on Tuesday, October 31, 2000, at 3:30 P.Iv[ in the Board of County Commission Chambers - Room No. 1028, County Services Building, 1101 East First Street, Sanford, Florida. City Commission Present: Mayor-Commissioner Larry A. Dale Commissioner Whitey Eckstein Commissioner Velma H. Williams Commissioner Brady Lessard Commissioner Randy Jones City Manager Anthony VanDerworp Acting City Clerk Cynthia Porter Absent: City Attomey William L. Colbert City Clerk Janet R. Dougherty County Commission Present: Chairman Carlton Henley Vice Chairman Grant Maloy (Late) Commissioner Randy Morris Commissioner Dick Van Der Weide Commissioner Daryl McLaln County Manger Kevin Grace Deputy County Manager Jim Marino Deputy County Manager Frances Chandler Deputy Clerk Sandy McCann County Attorney Robert McMillan Cindy Coto Tourism Development Council Present: Jack Wert, Tourism Development Director Walter Padgett Russell Hanck Penny Leffel Bill Buret Tom Siegfried Cindy Gennell Helen Stairs Chairman Henley called the meeting to order. [Commissioner Grant Maloy present.] HISTORICAL OVERVIEW. David Darcey, Real Estate Research Consultants, Inc. (RERC), reviewed 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. He also reviewed results of their earlier research efforts and reported that in 1995/96 the County prepared an RFP and received two responses: P/zzuti Company and Trammel Crow Company. The County selected Pizzuti and authorized negotiations, however, no contract resulted from the negotiations. In 1997, RERC conducted an update of the original 1994 market and financial analysis for the Pizzuti/Heathrow site. Mr. Darcey reviewed the results of the study which included the following options: Convention Center, Multi-Use Facility, and Conference Center. The option selected was the 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. PRESENTATION OF CITY OF SANFORD PROPOSAL. Don Hunter, Hunter Interests Inc., reported 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. After research, he concluded that th~ are no tree conference centers/n the metropolitan Orlando area. The downtown conference center would primarily serve the 1-4 market and the numerous state-headquartered associations. He recoilS(, ,~t a 42,000 square foot conference center with a mix of spaces including a ballroom, training rooms and a tralnig~l~hitheater. Utilization rates are estimated at 22,000 guest days in year one, stabilizing at 29,000 in year four. Net ~ting income of $30,000 to $40,000 per year would MINUTES City Commission, Sanford, Florida 3:30 p.m. Joint City/County Meeting October 31,1~ be realized after year four of operation. He also recommended pursuing a 300-room, full service hotel with the alternative for a 200-mom boutique hotel. He estimated the investment of capital costs nfS105 per square foot for the conference center space would produce a basic, functional facility at an estimated cost of $4.5 million. Depending upon furnishings, professional fees, etc., conference center space could cost up to $7.5 million. He purposely estimated the public sector costs near the low end because he has been successful in securing corporate commitments from local companies through lease arrangements to partially fund furnishings and equipment costs in local conference centers used by the corporations. He has been successful in securing contributions of a civic nature. He displayed slides of similar facilities with which he has been involved. Discussion ensued. [Deputy Clerk Sandy McCann was replaced by Deputy Clerk Eva Roach.] Mr. Hunter continued reviewing the City of Sanford's proposal. [Commissioner Eckstein briefly left the meeting and returned.] [Mayor Dale briefly left the meeting and returned.] Mr. Hunter discussed with Chairman Henley the size of the site, open space and parking issues. Commissioner Morris stated he had to leave, but will review the tape of the remaining port/on 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 Weft, Tourism Director, responded that the Tourism Development Council (TDC) has had some discussions on this issue but not in detail. Chairman Henley stated he would recommend that the Board of County Commission schedule a meeting to discuss the conference center and then give direction. Commissioner Morris stated the TDC needs to review information and submit a recommendation that can be submitted to the Board during the second meeting in November or the first meeting in December.[Commissioner Morris left the meeting.] 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. The slides showed 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.] [Commissioner McLuin left the meeting.] Commissioner Williams stated that Sanford is the County Seat and has excellent waterfront development potential. She asked why Sanfurd was ignored during the studies; the City is being viewed as not having anything to offer. She wants to know when the Board will embrace the fact that Sanford is a product of Seminole County and does have something to offer. In addition, she wants to know what the liability is nfthe County joining a partnership with the City on this project. [Commissioner Van Der Weide returned.] Russell Hauck, TDC, stated that for future discussions, TDC needs to obtain one proposal with some options and not go back to three or four different proposals. Mr. Hunter stated 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.] Mr. Hauck responded to Mr. Hunter's comment relative to the 1997 study regarding an 80,000 room night generatior~ MINUTES City Commission, Sanford, Florida 3:30 p.m. Joint City/County Meeting October 31!2.000 Mr. Hunter explained for Commissioner McLain the parking needs for the facility. [Mayor Dale briefly left the meeting and returned.] FINANCIAL OVERVIEW. Jack Weft 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 various commitments in the Tourism budget. [County Manager Kevin Grace and Commissioner'McLain left the meeting.] He reviewed the impact of plugging $600,000 per year in the budget. He also reviewed slides of what the impact would be for a $400,000 annual commitment. Tom Siegfried and Cindy Gennell discussed with Mr. We~t the percentage of tourism money received by the zOO. Mr. Wert reviewed possible solutions of generating approx/mately $600,000, one of which would be to increase the hotel tax an additional 1%. [Commissioner McLain and Mr. Grace returned.] Another possibility is to reduce the commitment from $600,000 to $400,000 per year which would ease the burden on~the tourism tax fund. Another solution could be 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 project. He stated it was Seminole County's idea to have a conference center in the County, not the City of Sanford's idea. An Ad Hoc Committee was appointed by the Board of County Commissioners and it was decided that the number one site is the Sanford site. He explained how this project came about. He stated the City would like the County Staff and City Staff to get together to come up with an RFP or RFQ process 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 with what the County has started. Upon inquiry by Commissioner Van Der Weide regarding what Orange County's TDC tax is, Mr. Wert replied, "5%.' Chairman Henley stated there are a number of issues that need to be discussed and both County and City Staff need to determine what type of an agreement can be worked out. Discussion ensued relative to the process. He said that the TDC 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. County Staff needs to consider TDC's recommendations. Mr. Weft stated the TDC is not scheduled to meet in November; the 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 Staffs recommendations to review and evaluate. 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 Board of County Commissioners need to decide whether they want a conference center and if they want it at this site, then the TDC should review the financial feasibility of this project Commissioner Van Der Weide stated if both Staffs work together in coming up with a solution, the Board of County Commissioners will be getting closer in making a decision. He stated there were a lot of questions brought up today and the Board needs to focus on what the possibilities are and not drag it out. He said he believes there is a consensus that both MINUTES City Commission, Sanford, Florida 3:30 p.m. Joint City/County Meeting 565 October 31,1~00 sides want a conference center. 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 County Staff work with City Staff and their consultants to submit a recommendation. Mr. Grace clarified that County Staffwill bring this back to the Board and not wait for the TDC to meet. 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. A copy of a newspaper article from The Roanoke Times regarding the Conference Center of Roanoke was submitted by the Society for the Preservation of Fort Mellon Park. There being no further business, the meeting was adjourned. Attest: ity Clerk cp