Loading...
HomeMy WebLinkAbout04.16.2001COUNCIL WORK SESSION April 16, 2001 4:45 p.m. Council Chambers Members present: Anders, Jordan, Krizek, Murphy, Gronen, Getty, Berry. Moved by Jordan, seconded by Murphy that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Mayor Pro Tem Harold Getty stated that the first item on the agenda is to review the proposed resolution identifying appropriations of the Hotel/Motel tax for F.Y. 2002 Budget. Linda Gowdy, Chairperson of the Waterloo Convention & Visitors Bureau (CVB), stated that she has reviewed the proposed resolution and questioned what prompted the resolution. Councilperson Getty stated that over the past few months he has reviewed letters and documents, and that Council Members and the Facilities Maintenance Supervisor have inspected the Five Sullivan Brothers Convention Center for improvements to bring the Center up to standards. In addition, Nick Dahl, Manager of the Holiday Inn, sent a letter with a list of items that need to be improved, including improvements to the exterior, lobby and seminars rooms. Councilperson Getty stated that Martha Place also has a list of recommended improvements for the Center. Councilperson Getty stated that Randy Shepard, Facilities Maintenance Supervisor, has put together a list of improvements with an estimated cost of $300,000, and the city does not have the funds available for the improvements. Councilperson Getty stated that the only place to pick up extra funds was to use the excess hotel/motel funds for a year or so. Ms. Gowdy stated that the CVB has been working very hard to book more events in F.Y. 2001, and that the city will find that revenues are just starting to go up because of CVB's sales work. Bob Fahr, Member of the Convention and Visitors Bureau Board, stated that the council is saying the resolution is for just one year, and the last time the ordinance was changed it was suppose to be for a permanent basis, and that next year the council will probably have another reason. Mr. Fahr stated that he doesn't feel $350,000 is enough but that the cost for improvements to the Five Sullivan Brothers Convention Center is closer to $1 million. Mr. Fahr stated that when members were appointed to the CVB they were ordered to get our house in order and increase heads and beds, and they feel they have done that. Mr. Fahr stated that the CVB has an annual budget of $338,000 and this resolution will cut that budget by 30 percent, and CVB would have to cut marketing by 18 percent and reduce staffing by one or two persons. The remaining staff would have to assume additional duties of those laid off at a time when the CVB has been asked by the city to take an active role in the Downtown Renaissance Plan. Mr. Fahr suggested that the council table the resolution so that everyone could discuss what the city is planning to do with the funds. Mr. Fahr stated that he believes one-half of the hotel/motel tax funds are used for the Five Sullivan Brothers Convention Center, and taking funding from the CVB will cut the number of heads and bed and will not help increase tax revenues. Councilperson Getty stated that the city's Facilities Maintenance Supervisor came up with the list of $395,000 improvements to the Five Sullivan Brothers Convention Center. The city has put aside $150,000 for roof improvements but will need $250,000. Ed Wilson, former Convention & Visitors Bureau Member, reviewed the past six years. Mr. Wilson stated that the CVB went through reorganization and is increasing the number of heads and beads, and has hired a new Executive Director. Mr. Wilson stated he does not feel the CVB is a fat team, but they barely have enough funds to accomplish their objectives. Mr. Wilson stated that the city has enough hotel and motels, but it takes a lot of events to keep them full. Mr. Wilson stated he agrees the Sullivan Brothers Convention Center is important to the community, but businesses by the Crossroads Mall do not need or use the Center but events such as sports bring in business to the community. Mr. Wilson stated that the hotels are already paying the tax, and he does not think this should be a burden on the hotels. Mr. Wilson stated that this is a good team, and we can't cut the budget without cutting staff. Council Work Session April 16, 2001 Page 2 Dave Buck, Member of the Convention & Visitors Bureau Board, stated he agrees that the Sullivan Brothers Convention Center is in awful shape, but it has been bad for many years and it will take a lot more than $400,000 to bring it up to standards. Mr. Buck stated that the Center is always going to be an ongoing expense, and if the city cuts CVB's funding, other community agencies will be the loser. Mr. Buck suggested the city look at GO Bond funding for the improvements. Mr. Buck asked the council to reconsider the resolution and to meet with the CVB to come up with ways to make the improvements. Martha Place, Executive Director of Convention & Visitors Bureau, stated that the resolution would mean a 29 percent reduction in their budget and a definite reduction in staff. Ms. Place stated that they would have to drastically cut marketing and advertising efforts. Ms. Place stated that the city collected $698,000 in the hotel/motel revenue last year and should collect over $700,000 this year. Ms. Place stated that no one has cried louder than her about the condition of the Convention Center, but she feels there has to be another way to fund the improvements. Councilperson Gronen stated he reviewed the Waterloo - Cedar Falls Area Visitors Guide and he does not see any pictures of the Convention Center. Councilperson Gronen stated that the guide talks about the Holiday Inn but does not mention the Convention Center and asked if CVB markets the Five Sullivan Brothers Convention Center. Ms. Place responded that they do market the Center and there is a picture of the Center in their new brochure. Ms. Place stated that they could also place a picture of the Center in the Visitors Guide. Councilperson Getty suggested that the council table the resolution on tonight's council agenda. Moved by Jordan, seconded by Murphy that the resolution be tabled indefinitely. Ayes: Seven. Motion carried. Councilperson Getty stated that with the time remaining the council would review the request from Lockard Development to rezone property located at the northwest corner of Hammond Avenue and San Marnan Drive to allow development of a restaurant and office facility. Eric Thorson, City Engineer, stated that the city has scheduled improvements on San Marnan Drive over the next couple of years. Work this year includes lane improvements, such as right turn lane on Flammang and the new Super Target Store. There will be a rights in and rights out concept lane in front of Rydell and another between Menards and Community Motors. The work won't be `started until late Summer or early Fall. There will be an additional lane on Hammond Avenue and dedicated right and left turn lanes. The improvements next year will focus on San Marnan Drive. The new signalization work will not be done this year. With no further business before the council, it was moved by Jordan, seconded by Berry that the meeting be adjourned at 5:24 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk