2000-04-17 Special Called Workshop Meeting

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City Council Minutes -April 17, 2000 -Page 3 1) Complete an update study of the hospitality market analysis with the same firm who conducted the initial study. The City's portion of the study would be $10,000.00. 2) The City of La Porte consider underwriting a portion or all of the convention center. This could be accomplished through utilizing the hoteVmotel funds. Mr. Herrera introduced Mr. Cabanas of Benchmark Hospitality to inform Council his about his role and investment in this project. Mr. Cabanas explained the first study was an overview of the corporations and market place and their needs for within the community. He indicated he felt this project could be a facility that could step up a grade and be a conference hotel or a conference resort due to its connection with Sylvan Beach. He explained the difficulties in finding financing for this project and no financing could be found for a conference hotel. In 1998 considerations were given to the tax approach of financing a facility of this type. His firm could develop the hotel operation and the conference facility could be done by the City and between the two reach a point to make this a viable project. He indicated this type of project could be compared to the Woodlands and Del Lago. The additional study is needed to get one more view of the market place today and consider a large volume of day meetings. His firm would again share fifty percent (50%) of the cost of the study. Also by adding the day meetings as a component, financing may be available because the project would not be just a conference center. Mr. Herrera informed City Council he requested Mr. Litchfield come back to and provide a report on his analysis of the financial impact of this project on the City of La Porte. Mr. Litchfield reviewed his analysis and report with City Council. His report included the past and future performance of the hoteVmotel fund. The revenues reflected the increase from 4% to 7% and the new hotels recently opened in the City. Mr. Litchfield explained the estimated financial condition of the City should this project be funded from City funds. The consensus of Council was to direct Mr. Herrera to move forward with a second study and continue to explore a financing mechanism for the convention center and move forward with this project. Items will be recommended to City Council to vote on at a future meeting. The estimated time frame for this is approximately five (5) weeks. Workshop adjourned at 8:05 PM. 6. ADMIlVISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council of the following events: A. City Holiday -Good Friday, Friday, Apri121, 2000. B. Sylvan Beach Day -Saturday, April 29, 2000.