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Home My WebLink About[06b] Hotel Study C1TY C�� ST. JOS�PH ro�r�.cityo(stjoscph.com DATE: August 21, 2013 MEMO TO: Economic Development Authority Administrator FROM: Cynihia Smith-Strack Municipal Deveiopment Group Judy Weyrens RE: Hotei Study I�ayor Rick Schultz Background At the prsvious EDA meeting the Board directed staff ta contact the City of Crooks#on and other cflun�iiors Cobbiestone communities regarding their experience with the Gobblestone Hatei group. She steve Frank was aiso directed to research hotel/hospitality marlcet study providers. aab �oso Renee symenietz The direct�on was subsequent to discussion regarding a proposai from the Cobbiestone group. Dale wi�k The hotel franchiser and its sister c�mpany BriMarlc Constnaction secure investors for hate! constructioMoperation providing a market study finds such a venture could cash flow. The Enn marlcet study costs between $5,OOQ and �7,5Q0 a�d is usuatly picked up by the City, EDA, local Doug Danielson interests, 6tC. Steve Frank Larry Hosch Research findings foNow: Gary Osberg Dale w,�k Cobblestone Hot+el locations in Cities of Similar Size ;State City Popuiatiott Hiatorital Populstion Participstlon itt Study? flther InceMive #CanStS Ha r 5,993 GonSis#ent dedine Yes C °Geve" 'Nebrask� Seward 6,9A�6 Stead "lnformsl5tud " t3evel T1F NetNaska We ne 5,623 Stead Yes,E0A 7iF ?WiSGOnsin dintOnY311e 4.5$2 St�Bd AiO fiiF&RlF Wists�nsin D�rand 4,44b Sie Yes G T3F w�sconsin Evansvilie 5,012 Stead Na No-r�branded,7 rs old ;WxSCOnsin' Prairie Du Chien 5,911 5i�ad YeS, C T#F �Note!noi Mctrted ln Rrairie Uu L7iien but rotber acrus.s rivaer in A+4arquette!A,Populaiir�n less tha»400 Research Firm Location No#es Suggested by Board Member Osberg. Long history in market �esearch,well- Ma�eld Research Mpls MN respected in municipat realm. t have not known them to be speciaiists in hospitality industry. Suggested by Board Member Qsberg. Formerly located in Illinois,Sussex is Patek Hospitality Consultants Sussex WI near Milwaukee.Cobblestone requested City of Galesburg contract with them for a hotel study.Same with 1 � Research Firm Location Notes City of GrinneillA. Neither location has an existing Cobbiestone. Su$gested by Cobblestone.Close ties with Cobblestone.Conducted a study for City of Cokato-paid by City after discussion with Cobblestone,completed Feb. 2013. Maxfield conducted a Haspitality Marketers international Milwaukee WI Separate commercial market assessment for City in 2011.Glencoe— paid for by the EDA,after discussian with Cobblestone—began in Feb.of this year.Glencae results`positive'and sites being looked at for poieniial location �according to City Admin). Su$gested by Cobblestone. Unable to tie Hospitality Consultants!nc Boca Raton FL this firm to Gobblestone, BriMark,or WHG Hotet Management. Suggested by Cobblestone. Lisa Boushele is owner. No website or Core Distinct+an Group Mn or WI?'? address listing per web search.One completed study available online.Close ties to Cobblestone owners. www.lhrhospitality.com No ties to LHR Hospitality Management Si. Paul MN Cobblestone.Faund through independent search. www.hvshoteimanagement.corn No ties HVS Hote) Management Mpls MN to Cabblestone. Found through independen#search. www.hcgroup2.com No ties to Hospitality Cansuttants Group Mpls MN Cobblestone.Found through independent search. I have attempted to cantact Craig Hoiseth ihe Crookston HRA Director on numerous occasians since our previous meeting regarding Gobblestane project. The building is cunenUy under canstruction. Unknov+m at ihis point if study completed and/or financial incentive applied. I have also contacted Don �.evins at City oi Gakato. Study completed in February of this year. Request Discussian and direction is kindly requesied. � i,,tJ Discussion continues on hotel feasibility in Cokato Page 1 af 2 ___ __ _,___ __ __ _- � � ,�� .Search Engine Optimizaiian(Sffl) Webs�te i}einelopment * � �a ��fi j' .Or�lirae 11tl�ertixing Ccnteni!►�inageme�nt Systrms �,,�- ° .E-rrr��tampaigns .F-tornrr�erce Platfexm pe,relopn�et�t . . . � n.av�pse ir,over 25Q+MN newspapers # •. � • t ♦� � 1 � � � • I��.��el News� Sports� Columns�Obituaries(Classifieds�Guides �Subscribe J Ad Rates News:Area News� People f Crime �Events ( Blogs(Archive�Weather ��* Want to see the fuil newspaper i�Guding aU the photos?Check aut ou�oniine edition here: NeraM Joumal�DC E�terprise-Dispatch�Delana Herald.�umal �y�� Discussion continues on hotel feasibility in Cokato �� Dec.3,2012 �t��ib� `.#)fL,+t.+�4.�G�a.o+�. �v�� By Kristen Miiler News Editor �� N Can Cokato support a hotel? �81t�t}�tllJ�1" That is the question Greg Hanis is trying to answer with the help of business owners and community leaders. �� Hanis,president of Hospitality Marketers Intemational,is conducting a feasibility study on behaif of Cobblestone Hotels �� and the City of Cokato. ��'�� As part of tt�at,business owners,manufacturers,bank representatives,and other key community leaders were invited �.��# to share their input at a meeting Thursday on whethe�or not there is a need tor hotei accommodations in Cokato. Oflentimes,cities"don't know wnat you have until you reaUy stop to Iook at it,"Hanis roid the 15 people in attendance � at city hall. �� Which is why Hanis asked each of the ariendees what their thoughis were on a hotei coming to Gokato,and asked �'�iltt�l3�L'�!0!h them ta iist various town events and attradions that could potentiaily require hotel accommodations. ��"�"� Colleen Gompton,Dassel-Cokato Arts Associaiion's executive direetor,said lodging is often nesded to accommodate ��"�� the various artists who entertain ai the DC Performing Arts Center. ��*�� Those who have needed lodging have had to go somewhere else,"so there are many oppohun+ties there." wy�v Councii member Carl Hary'u mentioned the weekend-long service events by some of the area churches,adding,"!think ��M�M� there is good potential there." Eric Johnson of Edgewood Gables touched on the sports aspect and the opportunity to host muiti-day taumameMS ii there is iodaing avaiiabJe. Reaitor Wayne Murphy said he was curious if the hote!could maintain occupancy during the week,and if i#wouid be Utilized by a{ea businesses and manufacturing companies. , � A representative from Dura Supreme said the Howard lake manufaciurer of cabinets oflen wiU have to movs visitors throughout ihe week back and forth from the west metro because there aren't any accommodations around here.He ,t�,,;� also noted tliat entertainment and dining options are Iimited in fhis area and couldn't say whether or not the company �� would take advantage of a hatei in Cokato. ,, �, ` Dan Rabertson ot Ke�sington Bank said it would definitely find use for it.With a sisier kaank near Alezandria,there are ofien employees who would be abie to utitize it. ��`�� '„�.;��,,.�' "It wouid bring a lot of value,provided we can maintain it long-term,"Robertson said. He also noted that a hotel wouid bring more money into town as the occupants spend their daifars at locai businesses. Jim Nelson ut Faribault Foods commented on the company's need for space for business meetings and a banquei facility. Wedding receptions are also a concem,since they are typicaliy locaied out-of-iown due io tfie lack of facilities to accommoda?e such large gatherings. Ha�is noted that Cobbiesione uses a model tha!fi2s smaller cc�mmunities,typically 30 to AO rooms,based on A4 percent equi*y,which reduces the risk to iocal lendsrs,and there#ore,also reduces room raies. � � http:/lwww.herald journal.comlarchivesl20l2lstories/hotel-study-eokato.html $12112013 � Discussion continues on hotel feasibility in Cokatc� Page 2 of 2 1t was anna�anceu that there�ee seven�+t�tential pre�perties wi#hin the ciiy limil�thai will be�ansic�ered Sr�the te�,sil�ilit}� stUC�y,keeping in minci waier and sekver acc�ssitl;Iity ar�d square#oatage. Foliawir�a the meeiir7q.Hanis was pianning tc�tour#he vatious sites and call businssses ancf manutaoturers in the area to determine if ther�is�need#or weekday ladging. Since ihis is sornething companies iy�ically dc�n`i track.i#may be F�arder to pinpoint a quantitative need. Why Cokato? Cobbteslane Notels,founded in 20Q&,targets smaller markais,typica#ly pppuiations o#2.QQ0 to 5,000 in more r�rai areas where developmeni is available,expiained John S+ebert,vice president of develapmeni tor Cobbiestone.Siebert alsa nafed fhai there n�eds to he interes!by The commuraity,as weli. loDking at ai1 of lhose factors,"'Cpkato came an the radar,°Siebert said,adding,"I think there is some opportunity here to put a hotei in iown.° Siebert mentianed ihe hockey arsna that is under consiructian and the potential thers to draw occupants. "if there is a strong enaugh need,it is our respansibility to fulfili that,"Siebe�t said,adding thai many other hotel+chains wouldn'#even cansider a smali town,which is what makes Gobblestane unique. The feasibiiity study wii!determine whether or nat the hoiei chain finds Cokata economicatly viabie for a hotet.The study wili aiso heip decide what the town's needs are,so Cobbiestone can buiid a property that meets those needs,he said. !f there is need tor mesting space,Cabblesto�e wip take that inta consideration and possibiy add a larger meeting faciiity ta ac�ommodata. The modei currently being considered is a 36-room hotei with a pooi in an efiort to capture leisure travelers,Siebert said,adding that a pool typica0y isnY inGuded with anything 3B rooms or less. With the feasibiiity study expected to be compie#ed by the end of the year or early 2013,Siebert expects a decision to be made relatively quidciy thereafter on whether or nqt a hotei is something his�mpany wiq pursue. 1��1��1� �� _ �,y��#-�, y� ow�� iu, ! ��'�r�p��`il�,' � ��. µ�� a��orei � 7b3� 472-��?t� ..;. ; . . , , . Speciat Topics�Site AAap� Services�About�Cantact�Local Govemmen# c�t�era��oas�e�ro�rn�a��t�n�t��a�a�a.�a� � � http:/lwww.herald journal.eqmlarck�ivesl20l2lsiories!hotel-study-cokata.html 8121l2Q13