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HomeMy WebLinkAboutRes2006-100 Sponsored by: Corbridge ..... CITY OF SEWARD, ALASKA RESOLUTION 2006-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AND ADOPTING THE FINANCIAL FORECAST OF THE 2006 SEWARD CONFERENCE FACILITY FEASIBILITY REPORT PREPARED BY THE UNIVERSITY OF ALASKA, ANCHORAGE CENTER FOR ECONOMIC DEVELOPMENT AND AGNEW: BECK AND TASKING ADMINISTRATION TO DRAFT A REQUEST FOR PROPOSAL FOR THE MARKETING, OPERATION, AND MANAGEMENT OF THE PLANNED CONFERENCE CENTER IN THE MARY LOWELL CENTER TO A NON- PROFIT WHEREAS, the federal government began exploring the development of a combined facility housing multiple agencies and functions that would contribute to the growth and development of Seward; and .... WHEREAS, the City of Seward recognized that the development of a Multi-Agency Center that co-locates federal and state administrative offices and visitor components into a single building that also includes a conference center represents a significant opportunity to keep jobs in Seward thereby expanding our economy; and WHEREAS, the City of Seward has supported this concept for many years and has demonstrated its commitment and investment as well as being a co-signer on a project Management Memorandum of Agreement; and WHEREAS, the City Council approved Resolution 2003-100 adopting the Seward Waterfront Study which supports the development of a Multi-Agency Center including co-located conference center as part of revitalization of downtown Seward; and WHEREAS, the City Council approved Resolution 2004-77, in support ofthe multi-agency center and the development of the Seward Conference Center within this project; and WHEREAS, the City Council has approved several federal priority resolutions requesting federal funding for the Multi-Agency Center that includes the conference center; and WHEREAS, in 2006, city administration contracted with the University of Alaska, Center for Economic Development and AGNEW: BECK to draft a feasibility report for the Conference Center; and WHEREAS, this feasibility report provided the City of Seward with a financial forecast to '-- outline the costs and benefits of the conference center portion of the Mary Lowell Center; and CITY OF SEWARD, ALASKA RESOLUTION 2006-100 ..., WHEREAS, this feasibility report provided the City of Seward with marketing, management, and structural recommendations for the conference center portion of the Mary Lowell Center; and WHEREAS, the City has determined that it is necessary to prepare for the financial up front costs of the conference center portion ofthe Mary Lowell Center and adopt these costs into our 2007 and 2008 fiscal budget; and WHEREAS, the City has determined that it needs to prepare to outsource the marketing, management, and operation of the conference center portion of the Mary Lowell Center; and WHEREAS, the City has determined that it is in the best interest of the City to draft and administer a request for proposal for the marketing, management, and operation of the conference center portion of the Mary Lowell Center; and WHEREAS, the feasibility report identified that the intended purpose of having a conference center is not to make a profit but to provide a larger benefit to the community such as drawing visitors to the community businesses such as restaurants, hotels, shopping, and to increase the general visibility of the community statewide and nationally; and i I ...., WHEREAS, the City has determined that it is in the best interest to draft the request for proposal specifically to a non-profit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to adopt the financial forecast ofthe 2006 Seward Conference Facility Feasibility Report prepared by the University of Alaska, Anchorage Center for Economic Development and AGNEW: BECK in the form presented at this meeting and plan for these costs in the 2007 and 2008 fiscal budget. Section 2. The City Manager is authorized to proceed to draft and administer a request for proposal for the marketing, operation, and management ofthe planned conference center in the Mary Lowell Center specifically to a non-profit. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25th day of September 2006. ..J CITY OF SEWARD, ALASKA RESOLUTION 2006-100 ..... THE CITY OF SEWARD, ALASKA -7~~ Vanta Shafer, Mayo AYES: NOES: ABSENT: ABSTAIN: Dunham, Valdatta, Schafer, Thomas, Bardarson, Shafer None Lorenz None ATTEST: ..... r '", ~~~V~}=;;;~ Je~It Lewis,\CMQ ,- City Clerk --~/ ,\,'1 U """ " ... C>~ I, ..~\ _I Or v&.;;~ '" ~, "<' v....... ~A'" $ c}:,"o?PO~~"~() ~ (C' S I) ~ ....:I.J ~'.-:' Ity ea :: "'<~ _ 0'. ~ - : . .. .. . S T.'tAL ~ .. :0: ~ :0: :: ~ : : ':' .. --- l .. ..' . <"I " V'J'. .. 'l,. .' ~ -;. ~,,:>:..'-':~/e 1 ,\g',o'.~.:o ~'.;':';)-';"':...:....~, ..~ ."t ~ OF p...\..\\~~\ ""'1111'" -- COUNCIL AGENDA STATEMENT Meeting Date: September 25, 2006 Through: Clark Corbridge, City Manager From: Kirsten Vesel, Assistant City Manager Agenda Item: APPROVING AND ADOPTING THE FINANCIAL FORECAST OF THE 2006 SEWARD CONFERENCE FACILITY FEASIBILITY REPORT PREPARED BY THE UNIVERSITY OF ALASKA, ANCHORAGE CENTER FOR ECONOMIC DEVELOPMENT AND AGNEW::BECK AND TASKING ADMINISTRATION TO DRAFT A REQUEST FOR PROPOSAL FOR THE MARKETING, OPERATION, AND MANAGEMENT OF THE PLANNED CONFERENCE CENTER IN THE MARY LOWELL CENTER TO A NON-PROFIT BACKGROUND & JUSTIFICATION: The City of Seward has been in partnership with the Park Service, Forest Service, and City of Seward for the development of a Multi-Agency Center that co-locates federal and state administrative offices and visitor components into a single building. This facility includes a City of Seward conference center which represents a significant opportunity to keep jobs in Seward thereby expanding our economy. The City of Seward has supported this concept for many years and has demonstrated its commitment and investment as well as being a co-signer on a project Management Memorandum of Agreement. The City Council approved Resolution 2003-100 adopting the Seward Waterfront Study which supports the development of a Multi-Agency Center including co-located conference center as part of revitalization of downtown Seward. The City Council approved Resolution 2004-77, in support of the multi-agency center and the development of the Seward Conference Center within this project. The City Council has approved several federal priority resolutions requesting federal funding for the Multi-Agency Center that includes the conference center. In 2006, City Administration contracted with the University of Alaska, Center for Economic Development and AGNEW::BECK to draft a feasibility report for the Conference Center. This feasibility report provided the City of Seward with a financial forecast to outline the costs and benefits of the conference center portion of the Mary Lowell Center. This feasibility report provided the City of Seward with marketing, management, and operation recommendations for the conference center. The feasibility report identified that the intended purpose of having a conference center is not to make a profit but to provide a larger benefit to the community such as drawing visitors to the community businesses such as restaurants, hotels, shopping, and to increase the general visibility of the community statewide and nationally. Therefore, the City has determined that it is in the best interest to draft the request for proposal specifically to a non-profit. The City has determined that it is necessary to prepare for the financial upfront costs of the conference center portion of the Mary Lowell Center and adopt these costs into our 2007 and 2008 fiscal budget. The City has determined that it needs to prepare to outsource the marketing, management, and operation of the conference center portion of the Mary Lowell Center. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: The one time start up costs is forecasted at $100,548 and should be distributed throughout the planning phase of the budget. The financial projections for the net deficit are as follows: Year one is $70,561, year two is $61,234, year three is $51,083, year four is $40,058, and year five is $40, 828. After the start up phase, the annual subsidy of approximately $40,000 per year should be incorporated into the budget. However, the annual bed tax and sales tax from the community revenues associated with the conference center should meet and exceed this annual deficit. The start up cost and initial marketing costs should be partially included in the 2007 and 2008 fiscal budget. Approved by Finance Department RECOMMENDATION: Council approves Resolution 2006- _____ authorizing the City Manager to adopt the financial forecast of the 2006 Seward Conference Facility Feasibility Report prepared by the University of Alaska, Anchorage Center for Economic Development and AGNEW::BECK andtasking administrationto proceed to draft and administer a request for proposal for the marketing, operation, and management of the planned conference center in the Mary Lowell Center to a non-profit.