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HomeMy WebLinkAboutMINUTES Community Development Committee 1997-05-01BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS / Community Development Committee May 1, 1997 Committee: Attending: Also Attending; Chairman Doylen, Trustees Barker and Marshall All Trustees Baudek, G. Hix and Pauley, Administrator Klaphake, Directors Hinze, Kilsdonk and Stamey, Advertising Manager Marsh, Conference Center Director Pickering, Secretary Botic Absent:None Chairman Doylen called the meeting to order at 8:00 a.m. STANLEY PARK Proposal to privatize all Stanley Park operations including an arena. Glenn Truitt (local businessman) stated he is representing an investor who previously considered utilizing the Lazy B and they are interested in working with the Town to upgrade Stanley Park with a 53,000 sq. ft. arena, four horse barns with 260 extra stalls. The investor will make $5,000,000 available with a rate of 8%; this opportunity has a time limit of 25 days. Mr. Truitt has been working with this proposal and realizes it will not be profitable for 4-5 years. He is expecting to add additional shows and groups in the shoulder periods. The AKC group has expressed interest, the Olyn^ic Equestrian Committee has not responded yet. Other ideas for usage would be: dances (1-2 times/week in the winter), a special event after the Christmas parade, Arabian Shows, Bull Riders Only from Texas. Mr. Truitt is confident that with an upgraded facility, business will flourish and he reviewed his background which has included work as a facility manager in the United States, Scotland, Mexico and in aviation maintenance. Mr. Truitt is confident contracts will increase with upgrading of the site and people will be willing to pay more money. He emphasized the 8% money with 7% backing. Chairman Doylen explained that all other Trustees and organization members were invited to attend this meeting. To date a rendering of the proposed facility has been presented, there have been brief conversations with Town Attorney White, and five pages of confidential information have been presented to the Trustees; she noted the difficulty in addressing conceptional deficiencies. Discussion continued with Trustees asking questions and Mr. Truitt responding. The arena would be placed between Barns U and V on the south end of the site and a bridge would be utilized for access to the second level. Town Administrator Klaphake stated privatization would be very good for the Town and Stanley Park and referred to a 1989 study that stated most arenas are subsidized and he questioned the revenue projections. Mr. Truitt stated that the increase of two horse shows and stall prices were a part of the conservative revenue BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Community Development Committee - May 1, 1997 Page 2 projections and explained the investor has bonds which will be held by the brokerage house and interest on the $5,000,000 will not need to be repaid for 5-10 years and he did not consider a balloon payment to be a problem that the Town should concern itself with. He believes repayment will be his problem, he has known the investor for 6 months and his projections utilize current stall fees. Chairman Doylen referred to the BRW Study and the projected improvements and the significant increase in costs for improvements that have been completed. She expressed concern for the balloon payment and questioned whether Mr. Truitt has spoken with people of existing events and he responded that some of the people he has spoken with are willing to pay more. At request Mr. Truitt stated the investor was Verdell Coppel of Longmont, and that they would supply a letter of credit from the investment firm and would post bond for this construction project. He reviewed a 'worst case scenario' and noted the lease would be held by the brokerage firm which would dictate a contract. After initial upgrading, he stated maintenance would be minimal. As Mr. Stamey, Community Development Director, has not seen any plans he was unable to comment on Code concerns with the arena. Mr. Truitt stated 'Dome' companies could contact interested board members, he personally knows the architect and ventilation would meet requirements. Heat requirements will be minimal; only radiant heat will be required above the bleacher area. Mr. Klaphake stated arenas he is familiar with (Penrose and Longmont, CO and Cheyenne and Gillette, WY) are all subsidized and he has concerns with a 50 year commitment, and stated the negotiation of a lease would need to be structured with careful detail. Mr, Truitt stated the risk will be to the mortgage firm, the investor's family is familiar with rodeos and a contract with the Olympic Committee will be a positive factor. Chairman Doylen expressed concern with continuity of a facility manager and varying information given by Mr. Truitt regarding his future plans and philosophy. Trustee Barker questioned how money will be repaid and expressed concern for the accruing monthly interest. In response to Chairman Doylen's concerns with the ERA Study and lack of funds for advertising, Mr. Truitt stated studies are not realistic and utilities will be the only requested subsidy. Mr. Klaphake acknowledged the presence of former Mayor Dannels in the audience and reviewed the history of choosing a location for the new Fire Department and expressed concern whether the Town would have sole control during the 50 year agreement. Trustee Baudek stated his interest in the proposal and requested written responses from potential customers. Mr. Truitt stated he has not spoken to representatives from the Scottish Festival or Wool Market. Chairman Doylen stated the lack of submitted resumes, references, reports, letters from people Mr. Truitt has mentioned makes a reasonable, rational decision difficult and expressed concern for the usage of the proposed facility by local people and identified potential problems with removal of the dirt for various events. Mr. Truitt responded that the scheduling group would have to incur a $20,000 fee for dirt removal. Mr. Klaphake expressed concern with the proposed arena architecture and stated he is interested in working with BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Community Development Committee - May 1, 1997 Page 3 the investor to only privatize the arena. Mr. Truitt will follow-up with the investor and will try to obtain published figures on horse shows. Audience comments: Paul Holgorsen, Stage Western owner, favors an indoor arena although doesn't recommend the privatization of all of Stanley Park and noted revenue is produced through money spent in the community by attendees. Greg Burke, Craftsman Leather owner, favors the proposal. Mary Truitt (wife of Glenn Truitt) stated she initially brought the investor to her husband, speaking of their knowledge and success and questioned the lack of support by the Town. Chairman Doylen responded questions have arisen due to no support data, no financial framework, lack of verifiable data and future commitments and letters of support, revenues not addressing repayment to the investor, maintenance costs, advertising etc. Mr. Klaphake stated there was initial excitement for building an arena and many items must be considered (deed restriction, mortgage, long term lease, etc). Mrs. Truitt thanked the Board for their time and interest and stated this may not be the right place for their investor and they may need to withdraw their proposal. In response to Trustee Pauley's question, Mrs. Truitt responded there is a non-subsidized arena in Cheyenne (Laramie County Community College) which is successful. Trustee Marshall reiterated the Town's interest in an arena and requested a meeting with the investor,- Mr. Truitt stated he is not ready to arrange a meeting as they want control of the entire area and are probably not interested and he is not willing to recommend proceeding to the investor. Mr. Klaphake stated Stanley Park does receive compliments, there is a need for an indoor arena and rain is a factor and recommended the Town Board act like a bank board in reviewing this proposal and see if the investor is interested on working on an arena with guaranteed usage days. Chairman Doylen reviewed the time frame of information the Town Board has received noting they have only seen 7 pages of paperwork which was originally based on the Lazy B and the Town does not have the luxury of being a venture capitalist, emphasizing the Board's responsibility is for 8,000 - 10,000 people. Trustee Barker stated there is a need for this type of facility and there is skepticism due to lack of information. Mr. Truitt stated he was not aware of the length of this process and stated he would withdraw the offer. Trustee Hix stated he is interested in an indoor arena and would like to have seen a proposal with completed information, noting the Trustees are stewards of the property and must have proposals in writing. Mr. Truitt stated he would be able to submit letters from some potential horse shows/trainers. He will speak with the investor about the arena and respond to the Town next week. Mr. Klaphake stated the Town is willing to recommend working with the investor on the arena and guaranteed usage days. Mr. Truitt stated he doesn't believe the investor will be interested in anything other than a concrete dome arena. The BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Commiinity Development Committee - May 1, 1997 Page 4 Committee recommends investigation of the possibility of only an arena with some subsidy and requested additional support data and requested the concerns of the Town be expressed to the investor. COMMUNITY DEVELOPMENT Advertising Report. Manager Marsh stated Requests for Information for the first quarter have decreased, and also noted there is a time lag with the new way of handling requests. He noted that Texas has a $11,000,000 advertising budget and their requests have decreased by 40%. E-Mail requests have increased significantly (up 19.5% end of first quarter). An Insert was distributed through various newspapers on April 27, 1997 and current Virtual Visitors Guide responses are equal to totals through mid October 1996. In the fall there will be a television test on KCNC-TV and he is working with Nick Molle' on this project. Community Profile. Director Stamey reported the Community Profile is a cooperative project with the Town, Board of Realtors and the Chamber of Commerce and has been updated with 4,700 copies produced. He recognized Roxanne Botic's efforts and coordination of the update. MUSEUM Director Kilsdonk reported the Museum will open the Tracks in Time Exhibit with a reception from 4-7 p.m. on June 7. On June 5 (3-5 p.m.) there will be a Trustee ice cream social to preview the exhibit. The renovation is proceeding. On May 2, 1997 a joint reception with the Art Center of Estes Park will be held. The Friends of the Museum has been awarded $8,200 by the Kenneth Kendal King Foundation. The grant will help support History Camp for the next two years. May activities were reviewed. Director Hinze reported the nightly campfire and singing will begin on June 15 in Bond Park. This will be from 7:30 - 8:30 p.m. for 60 days with the Town furnishing the fire ring and the Chamber of Commerce supplying staff to start and extinguish the fire. The Business Advocates have arranged sponsorships for entertainment with Jim Barleen for singing each evening. No amplifiers will be used. May events were reviewed; the Hippy Dippy Doo-Wap Parade has been canceled by the Chamber of Commerce. There being no further business. Chairman Doylen adjourned the meeting at 10:05 a.m. MAY 1 3 1997 : Tomi ; Tomi OF ESTES BG^.RD OF TlKUm’S Roxanne S. Botic, Recording Secretary