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HomeMy WebLinkAbout03.25.2002COUNCIL WORK SESSION March 25, 2002 4:00 p.m. Council Chambers Members present: Mayor Rooff, Berry, Welper, Greenwood, Clark, Jordan, Hurley, Getty. Moved by Jordan, seconded by Clark that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Lou Cutwright, Building Official/Maintenance Administrator, reviewed the Lease and Management Agreement with Continental Investment Group as it relates to the Five Sullivan Brothers Convention Center. Because of an original agreement with the Department of Housing and Urban Development of the U.S.A. to procure grant dollars to the build the Holiday Inn, a thirty year lease agreement was entered into by the city, with the lease expiring on December 31, 2013. The tenant is responsible for the daily cleaning and servicing of the facility. Renovations, updating decor, mechanical repairs, etc. are the responsibility of the city. Since the city has hotel/motel tax revenue of $150,000 per year allocated to the upkeep of the Five Sullivan Brothers Convention Center, Mr. Cutwright feels the best use of these dollars is to fund renovation of the facility so it can remain attractive to all who want to rent the facility for conventions. Aside from the $257,000 now available from the hotel/motel tax funds, Mr. Cutwright is requesting an additional $500,000 G.O. Bonds which could be paid off with the hotel/motel tax received every year. The taxpayers would not bear the burden of keeping the Five Sullivan Brothers Convention Center in good condition. Users of the center, through hotel/motel taxes, will pay for complete renovation and physical upkeep. Mayor Rooff stated he has had meetings with the owners of the Ramada Inn and specifically discussed security deposits from users of the center. Mr. Cutwright responded that Ramada Inn staff are not currently requiring a security deposit. Mayor Rooff stated that the owners of the Ramada Inn would be willing to break the contract if that is what the city wishes. Councilperson Getty suggested that members of the Building & Grounds Committee meet with management staff at the Ramada Inn to discuss the Five Sullivan Brothers Convention Center. Mayor Rooff stated that Ramada Inn staff book conventions, maintain/clean the facility and the city receives 4 percent of the booking revenue, which amounts to approximately $30,000 to $40,000 per year. Mr. Cutwright stated that in order for the city to continue to use the facility as an asset, the city is going to have to invest dollars. The city needs to work with the management staff at the Ramada Inn to make sure the facility is kept clean, all damage is repaired and a security deposit is required. Councilperson Jordan asked what does it cost the city per year for upkeep to the Five Sullivan Brothers Convention Center. Michelle Weidner, Chief Financial Officer, responded that the city invests $100,000 to $150,000 per year, and we receive approximately $40,000 in revenue per year. Councilperson Jordan asked if the city would invest $1 million in the Five Sullivan Brothers Convention what would be our return. Mayor Rooff responded that we need to get that information from the Convention & Visitors Bureau. Martha Place, Executive Director of Convention & Visitors Bureau, reported that we are up to about 4,100 room nights, and we should be at three times that amount. Ms. Place stated that there are service and Appearance issues at the center which prevents the Convention & Visitors Bureau from marketing the center. In addition, the size of the center at 38,000 square feet limits the market for use of the center. Council Work Session March 25, 2002 Page 2 Councilperson Clark asked what will change if the city updates the center, why would we invest more money. Councilperson Getty responded he feels the city needs to take over management and have Ramada Inn pay the city to use the center. Ms. Place stated that other downtown hotels are used for overflows of customers as Ramada Inn is not big enough to accommodate everyone. Also, they send overnight guests to the Crossroads area. Ms. Place stated that to take over management of the center would require a full staff with the authority and ability to negotiate contracts and an agreement with downtown hotels that they would always keep a certain number of rooms available. Councilperson Greenwood asked if the Convention & Visitors Bureau would be interested in managing the Five Sullivan Brothers Convention Center. Ms. Place responded that the center has a limited amount of space and the Bureau did not want to eat up the existing space. Ms. Place stated that managing a convention center is not her area of expertise. Mike Schmidt from Midwest Direct and Scott Wright, President of Lifeline Amplification Systems, made a presentation to the council on a proposed sound system for the Five Sullivan Brothers Convention Center. Mr. Wright presented the following overview of the design for the new sound system: 1. Easy to operate 2. Consistency through the rooms 3. Meets current clients' needs 4. Less chance for microphone feedback 5. Reliable and low maintenance 6. New wiring throughout the facility Mr. Wright reviewed the need for two main processing units, one on the first floor and one on the second floor. The processing unit needs to be easy to use with room names on each panel. There needs to be more control for each room. There can be two music choices available, page -privacy for each meeting room, overall volume control for each room, key lock for each meeting room, and mute button for each room. Mr. Wright reviewed the sound system for Exhibition Hall. Mr. Wright reported the sound system is designed so that it can be done in zones. Life Line will do all the work except the electrical work. Mr. Wright reviewed the cost for installation of the sound system, with the system costing approximately $130,000 to $160,000. Mayor Rooff stated he would want users involved in installation of a new sound system, including the Convention & Visitors Bureau. Ms. Place suggested that Ed Wilson from Iowa Show Productions be involved in purchasing a new sound system. Mayor Rooff stated that the Building & Grounds Committee will review the information presented tonight and will meet with Ramada Inn staff. With no further business before the council, it was moved by Getty, seconded by Greenwood that the meeting be adjourned at 5:01 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk